Hong Kong's pet industry is set to scale new heights as the number of pet owners continues to grow. Stacy Shi reports that pet insurance providers and veterinary clinics are among the biggest beneficiaries, and could inject new life into the city's economy.

Beebee, a poodle of three years old, has already had a close call that could have rewritten her story.

Owner Kennis signed Beebee up for pet insurance when her furry companion was six months old.

Her foresight was put to the test sooner than expected. Less than two months after the policy went into effect, Beebee's piercing yelp shattered an evening's calm in Kennis' living room. Before she had time to realize what was happening, the petite poodle had fallen off the sofa with its left foreleg dangling like a broken twig, bent at 90 degrees.

"We couldn't find out what actually occurred. There were no surveillance cameras," she recalls. "That scream … I'll never unhear it. How could something so small make such a loud sound?"

What followed next was a blur of panic, high veterinary bills and quiet relief. OneDegree — a Hong Kong-based insurer — covered more than HK$18,000 ($2,293) of the surgery costs under the policy signed for Beebee, taking care of 70 percent of the fees.

Beebee's case is far from unique. As Hong Kong's pet insurance market climbs, experiences like Kennis' have revealed a shifting landscape in which pets aren't just companions to their owners, but insured family members.

OneDegree, licensed by the Hong Kong Insurance Authority in 2020 and which launched its first product, Pawfect Care, the same year, is the city's first dedicated medical insurance company for cats and dogs. It started an innovative pet insurance policy in 2022, offering up to 90 percent reimbursements with no claim ceiling for a specific type of coverage — a first in the market — subject only to a single annual limit.

The company saw record-breaking insurance enrollment numbers for companion animals at the Hong Kong Pet Show in February, with premiums sold at the event soaring by 83 percent year-on-year. Cats made up 66 percent of insured pets, while dogs accounted for the remainder. By age group, policyholders aged 30-39 are the largest group (40 percent), followed by those aged 18-30 (28 percent).

Last year, the insurance company posted revenues of HK$240 million across all categories of its products — up 27-fold since the company's establishment. Its customer pool also rose significantly — up 17 times compared with 2020.