Pet Insurance in 2024: Key Industry Trends and What They Mean for Pet Owners and Veterinarians

Pet insurance continues to see rapid growth across North America, reflecting rising veterinary costs and an increasing awareness of the financial benefits of coverage. The 2024 NAPHIA State of the Industry Report provides valuable insights into the latest trends, highlighting industry expansion, shifting pet ownership habits, and the impact of rising claims. Here’s what pet owners and veterinary professionals need to know about the evolving pet insurance landscape.

A Growing Industry

The pet insurance market is expanding at an impressive rate, with total gross written premiums (GWP) reaching $3.9 billion in the U.S. and $485.5 million CAD in Canada by the end of 2023. The industry’s year-over-year (YoY) growth remains strong, with the U.S. experiencing a 21.6% increase in premiums and Canada seeing a 29.8% increase.

Despite this growth, adoption rates remain relatively low compared to human health insurance. However, more pet owners are recognizing the financial benefits of coverage as veterinary costs continue to rise.

More Cats Are Getting Insured

Historically, pet insurance has been dominated by dog owners, with dogs making up 86.5% of the U.S. market and 85.3% in Canada. However, cat insurance is on the rise. In Canada, insured cats make up 24.5% of the market, a higher percentage than in the U.S.

This trend may reflect rising veterinary costs for cats, as well as a growing awareness that feline health issues, such as urinary and kidney diseases, can result in significant medical expenses.

Rising Costs for Pet Owners

The cost of pet insurance is increasing across all coverage types. In the U.S., the average annual premium for a dog with accident and illness coverage rose to $675.61, while in Canada, it increased to $940.91 CAD.

Premiums for insurance with embedded wellness plans, which cover routine care in addition to accidents and illnesses, are significantly higher. Dog owners in Canada pay an average of $2,117.32 CAD annually for these plans. The rise in premiums reflects the increasing cost of veterinary care and the growing demand for comprehensive coverage.

Where Pet Insurance is Most Popular

Certain regions have higher adoption rates for pet insurance. In the U.S., California leads the market, making up 20.1% of total GWP. Other top states include New York, Florida, and Texas.

In Canada, Ontario holds the largest share of insured pets at 37.9%, followed by British Columbia (18.7%) and Alberta (16.4%). These areas also tend to have higher veterinary costs, which may be driving insurance adoption.

High Claims and Financial Benefits

Pet insurance can provide significant financial relief in emergency situations. Some of the highest claims paid in 2023 include:

• $51,133 for a Golden Retriever with lymphoma (U.S.)
• $59,470 for a Domestic Shorthair cat with intervertebral disc disorder (U.S.)
• $50,000 for a Bernese Mountain Dog with cardiovascular issues (Canada)

Common claims include gastrointestinal issues, skin infections, allergies, and urinary tract diseases—conditions that can lead to expensive treatments.

Final Thoughts

Pet insurance is growing in popularity as more pet owners seek financial protection against rising veterinary costs. With premiums increasing and more high-cost claims being filed, understanding policy options is crucial. Whether you’re a pet owner considering coverage or a veterinary professional advising clients, staying informed about industry trends can help ensure pets receive the best care possible.

For more insights on pet insurance and veterinary industry trends, visit the 2024 NAPHIA State of the Industry Report.