North America Pet Insurance Market Outlook, 2030

Pet insurance in North America has undergone a significant evolution over the past few decades, reflecting shifting attitudes towards pets as valued family members and the increasing costs associated with their healthcare. The history of this market traces back to the late 20th century when pet insurance first emerged as a niche product primarily offered by a few specialty insurers. Initially, the uptake was slow, with limited awareness and a perception of pets as less in need of insurance compared to humans. However, as veterinary care advanced, leading to higher costs for procedures and treatments, coupled with a growing recognition of pets' integral role in households, the demand for pet insurance surged.

The culture surrounding pet insurance in North America reflects a deepening bond between owners and their animals, where pets are increasingly viewed as companions deserving of comprehensive healthcare. This cultural shift has been fueled by a variety of factors, including the humanization of pets, the rise of social media showcasing pets' roles in people's lives, and a desire to provide the best possible care for furry family members. Consequently, pet insurance has become more main stream, with owners seeking coverage to mitigate the financial burden of unexpected medical expenses and ensure their pets receive optimal care. Looking ahead, the geographical landscape of the North American pet insurance market is poised for expansion. While the United States has historically dominated the market, Canada is witnessing steady growth as well. In the U.S., states with higher pet ownership rates and urban areas with affluent demographics tend to exhibit greater demand for pet insurance. However, there's still significant untapped potential in both rural areas and regions with lower-income demographics, presenting opportunities for insurers to broaden their reach. Technological advancements and the increasing availability of online platforms for purchasing and managing policies are expected to drive further growth and accessibility in the market. As the pet insurance industry continues to mature, it will likely become an integral component of responsible pet ownership, contributing to the overall well-being of pets and their owners across North America. Europe is often considered a leader in the pet insurance market due to several factors. One key reason is the long-standing tradition of pet insurance in many European countries. The concept of insuring pets for healthcare costs has been more widely accepted and integrated into the culture of responsible pet ownership in Europe compared to North America. This cultural acceptance has led to higher levels of awareness and adoption of pet insurance policies among European pet owners. The regulatory environment in Europe has played a significant role in fostering the growth of the pet insurance industry. Many European countries have regulations in place that require pet owners to have insurance or demonstrate financial responsibility for their pets' healthcare needs. This regulatory framework provides a strong incentive for pet insurance companies to operate and innovate within the European market.

According to the research report, the North America pet insurance market was valued at more than USD 3 Billion in 2024. 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 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.

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. 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.

Segmentation Analysis

Based on the report, by insurance type is segmented into accident and illness, accident only because it offers comprehensive coverage for a wide range of medical expenses, including accidents, injuries, and illnesses, providing pet owners with peace of mind and financial protection against unexpected veterinary costs. This segment leads the North American market due to its ability to address the growing demand for comprehensive healthcare coverage for pets, reflecting a cultural shift towards viewing pets as valued family members deserving of the best possible care.

Unlike accident-only insurance, which only covers injuries resulting from accidents, accident and illness insurance provides coverage for both accidents and illnesses, offering a more holistic approach to pet healthcare. This comprehensive coverage is particularly appealing to North American pet owners who prioritize their pets' well-being and are willing to invest in insurance plans that offer extensive protection. Additionally, the rising costs of veterinary care in North America have made pet insurance increasingly necessary, further driving the demand for accident and illness coverage. With advancements in veterinary medicine leading to higher treatment costs for illnesses and injuries, pet owners recognize the importance of having insurance that can mitigate the financial burden of unexpected medical expenses. The prevalence of chronic conditions and hereditary diseases in pets underscores the importance of comprehensive coverage provided by accident and illness insurance, as it ensures that pets receive timely and appropriate medical care without financial constraints. The convenience of customizable plans and the availability of additional benefits, such as wellness coverage and preventive care, also contribute to the popularity of accident and illness insurance in North America. Overall, the dominance of the accident and illness segment in the North American pet insurance market reflects a combination of factors, including changing cultural attitudes towards pets, the increasing cost of veterinary care, and the desire for comprehensive coverage options that prioritize pets' health and well-being.

Based on the report, the animal types are segmented into Dogs, Cats and Others. The dog segment is leading the pet insurance market in North America due to the widespread popularity of dogs as pets, their higher susceptibility to accidents and illnesses, and the strong emotional bond between dog owners and their canine companions. Dogs have consistently ranked as the most popular pet choice among North American households, with a significant portion of the population owning one or more dogs. This large and dedicated dog-owning demographic drives the demand for pet insurance, contributing to the dominance of the dog segment in the market.

One key reason for the dog segment's leadership is the inherent nature of dogs, which often leads to a higher likelihood of accidents and illnesses compared to other pets. Dogs are naturally curious and adventurous animals, prone to injuries from activities such as exploring, playing, or even simple household accidents. Additionally, certain breeds are predisposed to specific health issues or genetic conditions, further increasing the need for comprehensive insurance coverage. As a result, dog owners are more inclined to invest in pet insurance to safeguard their beloved pets against unexpected medical expenses. The strong emotional bond between dog owners and their canine companions plays a significant role in driving the demand for pet insurance. Dogs are often regarded as cherished members of the family, with owners willing to go to great lengths to ensure their health and well-being. This emotional attachment motivates dog owners to seek out insurance coverage that can provide financial protection and access to quality veterinary care when their dogs fall ill or sustain injuries. The desire to provide the best possible care for their furry friends, coupled with the recognition of the rising costs of veterinary treatments, reinforces the importance of pet insurance within the dog-owning community.

On the basis of this of the report, the end user segment is distinguished into Agency, Broker, Bancassurance, Direct writing and others. The agency segment is leading in the North American pet insurance market due to several key factors that highlight its effectiveness in reaching and servicing pet owners. One of the primary reasons for the agency segment's dominance is the established network of insurance agents who serve as trusted advisors to pet owners. These agents possess specialized knowledge about pet insurance products and can provide personalized guidance and recommendations tailored to the unique needs of each pet owner and their furry companions.

By leveraging their expertise and building rapport with clients, insurance agents play a crucial role in educating pet owners about the importance of insurance coverage and helping them navigate the complexities of selecting the right policy. The agency segment benefits from the wide reach and accessibility of insurance agencies across North America. With numerous agencies operating in both urban and rural areas, pet owners have convenient access to insurance services, whether through physical offices or online platforms. This accessibility ensures that pet owners from diverse backgrounds and geographic locations can easily obtain information about pet insurance and enroll in coverage plans, contributing to the segment's widespread adoption. The agency segment's leadership is reinforced by its ability to offer a comprehensive range of insurance products and services to meet the evolving needs of pet owners. Insurance agencies collaborate with multiple insurance carriers to provide a diverse portfolio of coverage options, including accident and illness insurance, wellness plans, and even specialized policies for specific breeds or pet lifestyles. This flexibility allows agents to customize insurance solutions based on factors such as the pet's age, health status, and the owner's budget, thereby maximizing the value proposition for clients. The agency segment excels in customer service and support, fostering long-term relationships with pet owners through proactive communication, claims assistance, and ongoing policy management. Insurance agents serve as advocates for their clients, advocating on their behalf during claims processing and ensuring timely resolution of issues. This personalized approach to customer service enhances the overall experience for pet owners and fosters trust and loyalty towards insurance agencies, further solidifying the segment's leadership in the market.

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.

Considered in the report

• Geography: North America
• Base year: 2024
• Historical year: 2019
• Forecasted year: 2030

Countries covered:

• USA
• Canada
• Mexico

Aspects covered in the report

• Market Size by Value for the period (2019-2030F)
• 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 and others)
• Market Share by Region
• Market Share by Country
• Market Share by Company

The approach of the report:

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise.

This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

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.