It’s no secret that the millennial generation’s lifestyle habitsare having a major impact on the economy. They’re digital natives.They’re putting off marriage and children. They’re choosing torent, not buy their homes.

And perhaps most significantly, they’re a generation saddledwith student debt in a job market that offers little opportunity torecoup their losses. In other words, financial peace of mind is inshort supply.

All of these factors have contributed to a rise in the renters'insurance market, but there’s another insurance product nipping atits heels: pet insurance.

The fact is, the demographic and economic forces driving rentersinsurance are many of the same things propelling pet insurance.Will these factors push pet insurance into a similar velocity ofgrowth?

Related: 11 unusual pet insurance successstories

Consider how the two markets mirror each other:

Lifestyle drivers

Millennials are renting longer in large part because they aredelaying marriage and children. And instead of starting families,they’re getting pets. In fact, millennials are now the primarypet-owning demographic in the U.S., according to the American PetProducts Association.

Underpenetrated markets

When it was discovered that only 40% of renters carry insurance,according to the Insurance Information Institute, providers turned tomillennials, raising awareness about the degree to which theyundervalue their belongings. They’re also underestimating therising cost of veterinary care. Advancements in veterinary medicineover the past few decades have pushed the cost of care steadilyhigher. According to 2016 Petplan pet insurance claims data, every sixseconds a pet owner is handed a veterinary bill for more than$3,000. Yet fewer than 1% of U.S. pets are insured, according tothe North AmericanPet Health Insurance Association.

Related: 10 ways to avoid pet insurance claims thissummer

Plugged-in platforms

Technology is king in the millennial generation — and an areathat can make or break the buying process for them. Rentersinsurance start-ups are attracting policyholders by designing adigital experience that provides good service, in less time and ata lower cost than big-name counterparts. Pet insurance providersare stepping up to the plate with apps and other digital platformsthat nurse prospects from quote to purchase, allowing them tocustomize their coverage and book a policy entirely online.

Low cost, big payoff

One of the biggest barriers to purchase for both rentalinsurance and pet insurance is the perceived added expense. But inreality, both insurance products are relatively inexpensive — andsometimes even a savings. According to ValuePenguin,the average cost of renters insurance is $187 per year in the U.S.,yet a policy could cover thousands of dollars’ worth of belongings.Similarly, the average cost of a Petplan pet insurance policy isjust $400 annually, yet it can provide up to an unlimited amount ofannual coverage.

It remains to be seen whether pet insurance will follow asimilar trajectory as renters insurance, but the similarities inboth markets suggest a tipping point is imminent. By appealing tomillennial prospects using modern design and innovativedistribution, pet insurance stands to fetch a significant share ofthe marketplace.

Related: 10 most common medical conditions for dogs andcats

Chris Ashton is co-founder and co-CEO of Petplan petinsurance. He can be reached at [email protected].