North America Pet Insurance Market Outlook, 2027

Pet insurance is a niche insurance product designed to help cover the veterinary expenses of dogs and cats, with some policies also covering other types of small companion animals. Because pets are legally considered to be the property of their owners, pet insurance is not, technically speaking, a health product like human insurance, but rather falls under the Property and Casualty insurance classification. The range of coverage offered by pet insurance policies can vary widely by provider and type of plan, with most companies offering at least three levels of coverage, often distinguished by such names as Basic and Premium. Most providers cover most types of illness, injuries and accidents, hospitalization and surgery, and prescription medications, although deductible levels, premiums, and reimbursement caps often vary, and coverage may also be limited according to pet age, breed and medical condition.

The report titled, North America Pet Insurance Market Outlook, 2027, categorizes the market to forecast the revenues and analyze the trends in each of the following segments: based animal type (Cat, Dog & others), by insurance type (Accidental and Illness & Accident only endorsement) by end-user (Agency, Broker, Bancassurance, Direct writing) based on countries & major companies. The increasing expenditure on the pet has been a major driver for the pet insurance market in North American countries. Along with this, there has been a visible incline in the pet population, which gave ample scope for the market. The pet insurance industry in the year 2016 was valued at USD 1.3 Billion. The market is expected to expand owing to the opportunities such as the presence of major players who are aiming to bridge the gap of the prevailing insufficient coverage. Apart from this, the fact that the pet adoption rate is increasing with every passing year and also an evident hike in the health-related issues among which leads to expensive pet health care are to push the market to a CAGR of over 7% in the forecasted period till 2027. One of the major factors leading to momentous expansion of the North America pet insurance industry is the growing awareness of pet owners pertaining to various advantages of availing insurance coverage for their pets. Companies and other associations are constantly involved in thorough marketing and education of pet owners. The pet insurance companies adopt digital marketing through social media platforms and their websites to increase the consumer awareness. As the market penetration in North America is about 2%, these companies are investing huge portion of the revenue generated towards marketing and sales activities. Moreover, various companies are making efforts to increase the transparency about the pet insurance coverage and gaining trust of the pet owners. High cost associated with pet care is one of the chief growth impending factors. As per the American Pet Products Association (APPA), in 2019, pet care expenditure in America reached to USD 75.4 billion. Also, treatment of few diseases such as pet cancer and other chronic diseases may cost more than USD 10,000. Thus, increasing expenditure on pet healthcare services will stimulate the demand for pet insurance. Adoption of various strategies such as competitive pricing of the monthly premiums and digital marketing are the major factors leading to market growth. Also, development of innovative insurance schemes coupled with various efforts to increase the customer awareness and satisfaction will further boost the market revenue. Furthermore, private players offer maximum coverage plans coupled with minimum premium that will further add to the market demand.

Many of the pet owners show a strong preference towards the accident & illness policies. This segment of the region covered almost the entire revenue, contributing to a little over 97% in 2016. Customers have started preferring accident & illness coverage policies for their pets, given that a major number of these accidents and illnesses are both covered in these policies. Such policies cover treatment costs for broken bones, poison ingestion, swallowed objects, allergies, laboratory tests, urinary tract infections, hospitalizations, surgeries, and X-rays. Accident-only policy coverage is now gaining much popularity due to an upsurge in electrocution, motor vehicle accidents, snake bite, and bone fractures. Such policies have become massively popular for their budget-friendly nature and high reimbursements. The accident-only segment is expected to grow over a CAGR of 22% in the forecasted period.

The average pet insurance cost is higher for dogs compared to cats for accident and illness policies. Yet, with the high number of dog pet adoption, the dog insurance segment accounted for more than 3/4th of the market share in 2020. However, with the increasing health issues resulting in deadly disorders like cancer, diabetes, FIV, Heartworm, etc. in cats the cat parents are inclined towards insurance which is to allow the segment to grow with a significant CAGR. The North America pet Health Insurance Association is the primary government organization that works collectively with veterinary professionals, animal welfare organizations, and insurance providers to drive the adoption of pet health insurance. The market is dominated by the agency segment which accounted for majority of the market share. Leading insurance permits various novel pet schemes to retain consumers. Various insurance policies such as schemes that cover pets of different ages, multi-pet insurance policies that include multiple pets during a single plan attract a sizable number of consumers.

The US has the most significant pet population which has aided it to become an extensive market shareholder not only in the regional market but also in the global market. Currently, the US market has more than 12 key market players. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers. The pet insurance industry in Canada is estimated to record a significant growth rate from 2021 to 2027 owing to the soaring adoption of pets in the country. The product demand is impelled by the provision of numerous policies by pet insurance companies.

The pet insurance in the region comprises at least 20 companies, several of whom underwrite multiple white labels or other co-branded products and all together forming an additional 20 other pet insurance product brands. Private players tend to supply insurance policies with maximum coverage plans and minimum premium offers. Leading insurance agencies permit various novel pet schemes to retain consumers, which will further foster market growth in the region.

COVID-19 Impact

The pandemic affected the market in the region in a mixed manner. The positive impact was observed with the higher adoption rate of pets in the region during the pandemic when people forced to sit at home due to lockdowns wanted a companion. Further, pet owners were looking to spare unaccounted expenses through their pets and sought financial aids which were fulfilled by the pet insurance market. On the other hand the market growth was obstructed by the fact that the consumer was looking to cut down on expenses during the economic distress caused by the Virus.

Companies Included

Figo Pet insurance, Nationwide Mutual Insurance company, Pet first pet insurance, PetHealth Inc., Pet Plan Limited, Trupanion, Crum & Foster Pet Insuracne Group, PetSecure Pet Insurance, TRUSTEDPALS, RSA Group, USAA, Tokia Marine & Nichido Fire Insurance Co.Ltd.

Considered In the Report

• Geography: North America
• Base year: 2021
• Historical year: 2016
• Forecasted year: 2027

Countries covered:

• USA
• Canada
• Mexico

Aspects covered in the report

• Market Size by Value for the period (2016-2027F)
• Market Share by Animal Type (Cat, Dog & others)
• Market Share by Insurance Type (Accidental and Illness & Accident only endorsement)
• Market Share by End User (Agency, Broker, Bancassurance, Direct writing)
• Market Share by Region
• Market Share by Country
• Market Share by Company

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Finance & Insurance Service industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.