Pet Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Coverage Type (Accident & Illness, Chronic Condition, Others), By Animal (Dogs, Cats, Others), By Sales Channel (Agency, Broker, Others), By Region, By Competition Forecast, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 14.13 Billion
CAGR (2026-2031)	11.59%
Fastest Growing Segment	Dogs
Largest Market	North America
Market Size (2031)	USD 27.28 Billion

Market Overview

The Global Pet Insurance Market will grow from USD 14.13 Billion in 2025 to USD 27.28 Billion by 2031 at a 11.59% CAGR. Pet insurance is a risk management product designed to reimburse policyholders for veterinary expenses related to accidents, illnesses, and routine wellness care. The primary drivers fueling the expansion of this sector are the escalating costs of veterinary medicine and the increasing humanization of pets, which compels owners to seek advanced medical treatments comparable to human healthcare standards. This robust demand is evidenced by recent industrial performance data. According to the North American Pet Health Insurance Association, in 2024, the total written premium volume for the pet insurance market in North America surpassed $5.2 billion.

Despite this upward trajectory, the industry encounters a significant impediment regarding the affordability of coverage for the mass market. As veterinary inflation persists, insurers are frequently required to raise policy premiums to maintain solvency, which creates a substantial barrier to entry for price sensitive consumers. This economic friction not only limits new customer acquisition but also contributes to higher policy cancellation rates, thereby restricting the ability of the market to deepen its penetration within the vast population of uninsured pets.

Key Market Drivers

Escalating veterinary healthcare and treatment costs constitute the most pressing catalyst for the global pet insurance market. As clinics increasingly adopt advanced medical technologies such as MRI diagnostics, specialized oncology treatments, and orthopedic surgeries, the financial burden on pet owners has risen sharply. This inflationary pressure drives households to seek financial safety nets to mitigate the risk of unexpected medical expenses, effectively transferring the economic volatility to insurance providers. According to Synchrony, June 2025, in the '2025 Pet Lifetime of Care Study', the average 15-year lifetime cost of care for a dog now ranges between $22,125 and $60,602, representing an 11.65% increase compared to 2022 benchmarks. This rising cost structure directly correlates with higher claims activity across the sector. According to the Association of British Insurers, in 2025, insurers paid out a record £1.23 billion in claims during the previous year, underscoring the critical role coverage plays in managing these escalating fees.

Simultaneously, the global surge in pet ownership and adoption rates has significantly expanded the addressable consumer base. The post-pandemic landscape has solidified a societal shift where companion animals are viewed as essential family members, driving a higher propensity among owners to invest in long-term health protection. This "pet parenthood" phenomenon has directly translated into increased policy uptake, as new owners prioritize value-added wellness and accident coverage to ensure their pets receive optimal care. According to the North American Pet Health Insurance Association, April 2025, in the 'State of the Industry Report 2025', the total number of insured pets in North America reached 7.03 million at the end of 2024. This volume growth indicates that as the pet population expands, the market penetration of insurance products is deepening to meet the demand for comprehensive healthcare access.

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Key Market Challenges

The lack of affordability significantly hampers the growth of the Global Pet Insurance Market, primarily due to the direct correlation between veterinary inflation and rising policy premiums. As the cost of veterinary care escalates with the adoption of advanced medical treatments, insurers are compelled to increase their rates to maintain solvency. This upward pricing adjustment creates a substantial financial barrier for mass-market consumers, making insurance products inaccessible for a large segment of pet owners. Consequently, high premiums not only deter potential new customers from entering the market but also increase the rate of policy cancellations among existing clients who can no longer sustain the expense, thereby limiting overall market penetration.

The severity of this cost barrier is highlighted by recent industry data reflecting the financial commitment required for standard coverage. According to the North American Pet Health Insurance Association, in 2024, the average annual premium for accident and illness coverage for dogs in the United States was $749.29. This figure underscores the economic friction within the market, as such substantial costs directly restrict the industry's ability to expand its customer base and deepen engagement among price-sensitive populations.

Key Market Trends

The Expansion of Employer-Sponsored Pet Benefits is fundamentally altering market distribution as organizations leverage coverage to enhance talent acquisition and retention strategies. Recognizing that financial stress from unexpected veterinary bills impacts employee productivity, corporations are increasingly integrating pet insurance into voluntary benefits packages to support a diverse, pet-owning workforce. This institutional adoption provides a critical safety net that individual policies often lack in affordability, effectively subsidizing access to care through group rates and payroll deductions. According to Nationwide, September 2024, in the 'Why Nationwide' corporate report, more than half of Fortune 500 companies and nearly 10,000 organizations across the United States offered the company's pet insurance benefits to their associates as of late 2024, underscoring the rapid transition of this product from a niche personal expense to a standard component of corporate compensation structures.

Concurrently, the Integration of AI-Driven Claims Automation is revolutionizing the policyholder experience by eliminating the traditional "pay and claim" reimbursement model. Insurers are deploying proprietary algorithms and direct-to-vet payment portals that assess eligibility in real-time, drastically reducing the administrative friction that historically deterred policy utilization. This technological leap allows providers to settle invoices at the point of service, thereby mitigating the out-of-pocket financial burden for pet owners during medical emergencies. Validating this operational shift, Veterinary Practice News, December 2024, in the article 'Trupanion reaches $3 billion in paid claims', reported that Trupanion processed approximately 85% of claims through its digital Veterinary Portal directly to practices, with two-thirds of these transactions completed in less than one minute.

Segmental Insights

The Dogs segment represents the fastest-growing category in the Global Pet Insurance Market, primarily driven by the higher susceptibility of canines to accidents and breed-specific chronic conditions requiring expensive medical intervention. As veterinary costs escalate with the availability of advanced treatments, owners are increasingly adopting insurance to mitigate financial volatility. This expansion is further propelled by the societal shift toward pet humanization, where dogs are valued as integral family members, justifying greater investment in their healthcare. Data from the North American Pet Health Insurance Association (NAPHIA) affirms this momentum, reflecting a sustained surge in canine policy enrollments and premium contributions.

Regional Insights

North America maintains a leading position in the global pet insurance market, driven by high pet ownership rates and rising veterinary healthcare costs. The increasing trend of treating pets as family members encourages owners to invest in comprehensive health coverage to manage potential medical expenses. Additionally, the presence of established insurance providers and a well-structured industry framework supports market stability. Reports from the North American Pet Health Insurance Association indicate a consistent demand for coverage across the United States and Canada, further validating the region’s dominance as owners seek financial protection against unexpected veterinary bills.

Recent Developments

• In October 2024, Bindable entered into a partnership with Pets Best Insurance Services to enhance the digital distribution of pet health products. This collaboration enabled Bindable’s extensive network of insurance carriers, brokers, and affinity groups to offer Pets Best coverage options through a streamlined, API-enabled quoting experience. The partnership focused on leveraging proprietary insurance technology to remove friction from the enrollment process, making it easier for consumers to secure protection for their pets. By combining Bindable’s distribution technology with the underwriting expertise of Pets Best, the companies aimed to close the coverage gap and meet the rising consumer demand for accessible, digitally native insurance solutions.
• In July 2024, Odie Pet Insurance announced a strategic partnership with Insuritas to embed pet health coverage within the financial services industry. Through this collaboration, Odie’s insurance products were integrated into the Insuritas BUNDLE platform, which enables banks and credit unions to offer insurance directly to their account holders. This arrangement allowed financial institutions to diversify their non-interest income while providing customers with seamless access to affordable veterinary coverage through their trusted banking portals. The initiative represented a significant shift toward using embedded insurance models to expand market penetration and reach pet owners through alternative, high-trust distribution channels beyond traditional insurance brokers.
• In May 2024, Unum Group entered the pet insurance sector by introducing a new voluntary benefit product for employees, developed in partnership with Nationwide. This offering was integrated into Unum’s existing portfolio of workplace financial protection solutions, addressing the increasing demand from the workforce for support with veterinary expenses. The product, underwritten by Nationwide, provided coverage for accidents, illnesses, and preventive care, alongside access to virtual veterinary support. This launch highlighted the strategic expansion of traditional employee benefit providers into the pet market, recognizing that pet health coverage is becoming an essential component of holistic family financial planning and employee retention strategies.
• In January 2024, Nationwide and Petco Health and Wellness Company executed a strategic collaboration to launch a customizable pet insurance product available directly through Petco’s digital platform. This co-branded offering was designed to provide pet owners with flexible coverage options, allowing them to tailor reimbursement rates and deductibles to fit their specific financial requirements. By integrating Nationwide’s underwriting capabilities with Petco’s extensive retail and health ecosystem, the initiative aimed to streamline access to veterinary care protection. The partnership underscored a growing trend of embedding insurance solutions within retail environments to increase accessibility and support the comprehensive wellness needs of pets across the United States.

Key Market Players

• Trupanion, Inc.
• Deutsche Familienversicherung AG
• Allianz
• Animal Friends Insurance Services Limited
• Figo Pet Insurance, LLC
• Nationwide Mutual Insurance Company
• Embrace Pet Insurance Agency, LLC
• Anicom Insurance
• ipet Insurance Co., Ltd.
• MetLife Services and Solutions, LLC

By Coverage Type	By Animal	By Sales Channel	By Region
Accident & Illness Chronic Condition Others	Dogs Cats Others	Agency Broker Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Pet Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Pet Insurance Market, By Coverage Type:

• Accident & Illness
• Chronic Condition
• Others

• Pet Insurance Market, By Animal:

• Dogs
• Cats
• Others

• Pet Insurance Market, By Sales Channel:

• Agency
• Broker
• Others

• Pet Insurance Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE