It's like the '50s all over again. Thanks to the recovery, everyAmerican can once again aspire to own a home, a new car and aLabrador retriever, digging in the yard and hanging out the carwindow.

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Well, maybe a Labradoodle. Or a pet skunk. Or four spayed andneutered cats, declawed of course. Because it's not the '50s, andthings have definitely changed in the pet world. One hugedifference: Today, we can go out and get pet insurance to cover thecost of our passion for pets.

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Pet insurance is big money these days and, according toIBISWorld, it's only going to get bigger.

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In a 35-page report on the pet insurance market, the market researchfirm says the industry's future is bright, forecasting a 12.6%revenue increase in 2015 over 2014.

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Key factors driving this trend, which has been evolving for fiveyears, are increasing prices charged by veterinarians, theincreasing incidence of pet owners seeking medical treatment forpets, increased home ownership by Americans and, in tandemwith that, a growing number of pets in the U.S.

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Among the key findings:

  • U.S. pet insurance is poised for growth based on the experienceof other nations. Here, only 1% of domestic pets are covered. Inthe U.K, 23% of pets are covered by insurance and in Sweden, 30%are insured.

  • Between 2015 and 2020, industry revenue is forecast to increaseat an annualized rate of 6.8%, driving annual sales to $1billion.

  • The risks and trends of pet insurance more closely parallelthose of health insurance than those of property/casualty, the category that includespet insurance.

  • The sheer number of domestic pets will increase at an annualizedrate of 2.1%, largely driven by increasing home ownershiprates.

  • Market share concentration will occur as the industry maturesand large players dominate sales.

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.