As the companion animal population continues to grow in Korea, public interest in animal health and welfare has increased, and the burden of high veterinary medical expenses has emerged as a significant social issue. Pet insurance has attracted attention as a mechanism to mitigate the financial risks associated with unexpected illnesses or accidents and to provide guardians with economic and psychological security. However, the system has struggled to take root due to structural challenges such as low enrollment rates, limited consumer trust, complex claims procedures, a non-standardized medical system, and insufficient legal and institutional foundations. In addition, the need for pet insurance to function as a means of liability protection in animal-related incidents further underscores the necessity of institutional reform.
This study conducts an in-depth analysis of the current status and limitations of Korea’s pet insurance system and, through a comparative review of advanced cases in Sweden, the United Kingdom, and Germany, proposes strategies to enhance institutional stability and market activation. The analysis identifies five key policy tasks required to improve the effectiveness of the domestic pet insurance system.
First, establishing standardized veterinary practice guidelines and strengthening mandatory pre-disclosure of medical fees are necessary to enhance transparency and predictability in veterinary care. Second, operational improvements in the small-amount short-term insurance business, regulatory flexibility, and the activation of reinsurance are needed to distribute insurers’ risks and encourage the development of products tailored to life-cycle and breed-specific characteristics. Third, the effectiveness of the animal registration system must be reinforced, and relevant regulations should be clearly codified within the Animal Protection Act and Veterinarian Act to clarify insurance claims, payments, and dispute resolution procedures. Fourth, digital infrastructure—including an electronic claims system (E-Claim), API-based connectivity between veterinary clinics and insurers, standardized medical coding, electronic medical records, and open data platforms—should be strengthened to improve the efficiency and transparency of the claims process. Fifth, nationwide promotion and educational initiatives should be expanded, supported by cooperation among local governments, insurers, veterinary hospitals, and public institutions. Public education on liability insurance, linkages between registration and insurance, and the legal status of animals can also contribute to fostering a responsible companion animal culture.
International examples—such as standardized fee schedules, mandatory liability insurance, and mobile claims systems—provide valuable insights for domestic reform. This study suggests that an integrated approach encompassing medical standardization, stable insurance supply, legal and institutional refinement, digital claims infrastructure, and expanded public education can enhance the trustworthiness and accessibility of pet insurance, alleviate medical cost burdens, and contribute to the development of a sustainable companion animal welfare system.
In conclusion, improving the pet insurance system requires structural reforms beyond product modification, including greater transparency in veterinary costs, more efficient claims procedures, and stronger legal foundations. Such efforts will help promote responsible pet ownership and support the formation of a welfare-oriented society in which humans and animals coexist harmoniously.