[비즈한국] As the population of pet owners grows, a flood of related financial products is emerging. According to the KB Financial Group Research Institute, as of the end of 2022, there were 5.52 million households with pets, involving 12.62 million pet owners. The number of people keeping pets has increased significantly, with pet-owning households now accounting for 25.7% of all households.
Among pets, households with dogs accounted for the largest share at 71.4%, while cat-owning households were the second largest at 27.1%. Even among the majority (78.7%) of households that do not currently own pets, many expressed a desire to keep pets such as dogs, cats, goldfish, or turtles in the future.
So, what areas are pet-owning households most interested in? It is "healthcare" and "rearing funds." Person A, who keeps a rabbit, said the biggest difficulty is finding a clinic that can treat a rabbit when it gets sick. To check the rabbit's health, they had to travel two to three hours round-trip to visit a hospital. If a diagnosis for an illness was received, it cost a significant amount of money.
We often think of a pet's life as lasting from birth to death, but pet-owning households take responsibility for their pets from the initial adoption stage all the way through to funeral arrangements after death. While it is necessary to estimate and prepare for costs throughout their lifecycle, the fixed costs—such as food, treats, grooming, and veterinary care—vary, and the costs required by different services and companies also differ. Excluding healthcare and medical expenses for injuries or illnesses, pet-owning households spent an average of 154,000 won per month on fixed rearing costs. In particular, large, unexpected medical bills can sometimes occur. Since there is no state-provided health insurance, many people feel a significant burden regarding their pets' medical expenses.
Consequently, an increasing number of pet households are managing rearing funds. 21.5% of pet households were saving for such funds, with an average of 2,427,000 won accumulated. Furthermore, 96.7% of households that manage pet rearing funds were saving money specifically for their pets every month. The amount they save averages 259,000 won per month, which accounts for 26.6% of the spare funds (average 973,000 won) that these households save or invest monthly.
However, those who feel that simply saving their spare funds is insufficient are turning their eyes toward pet insurance or pet-specific savings accounts. "Insurance" is often something people think of only when their pet gets sick, even if they previously thought it was unnecessary. This is because while pets might be healthy when young, they inevitably require medical care as they age. Pet insurance is a policy that indemnifies medical expenses incurred for pet treatment, and any pet over two months old can be enrolled. On average, the insurance maturity is 20 years, and annual premiums can cost up to 600,000 won.
Since pet insurance is a renewable product, premiums are set relatively low if you sign up when the pet is young, but premiums increase as the pet gets older. If the premium is a burden, you can choose products with higher deductibles or longer renewal cycles, or receive a 2–5% discount on premiums by registering your pet with the National Animal Protection Information System. Of course, insurance can only be purchased for the purpose of raising a pet; pets from pet shops or those raised for special purposes are ineligible. By purchasing additional riders, you can also be compensated for damages caused to others' bodies or other pets, and receive funeral expenses or solatium in the event of the pet's death.
There are also damages that pet insurance does not cover. It does not cover medical expenses for illnesses or injuries that occurred before the coverage start date, medical procedures performed by unqualified veterinarians, or congenital/hereditary diseases. Additionally, dental treatment, vaccinations, cosmetic surgery, and costs related to pregnancy, childbirth, infertility, or contraception are not covered. There is also the option to save money through pet-specific savings accounts instead of insurance. Comparing options is essential because benefits vary by financial company, such as offering preferential interest rates without conditions or providing free pet liability insurance.