U.S. Pet Insurance Market Poised for Significant Growth, Research Shows
Dublin, November 25, 2024 (GLOBE NEWSWIRE) — The U.S. pet insurance market is experiencing robust expansion, according to a newly released report from ResearchAndMarkets.com. The report, titled “U.S. Pet Insurance Market Size, Share & Trends Analysis Report by Coverage (Accident & Illness, Accident Only), Animal (Dogs, Cats), Sales Channel (Agency, Broker), States, and Segment Forecasts, 2025-2030,” details the factors fueling this growth and offers market projections through the end of the decade.
The market was valued at $4.99 billion in 2024 and is forecast to reach $15.71 billion by 2030. This represents a compound annual growth rate (CAGR) of 20.98% between 2025 and 2030.
Driving Forces Behind Market Expansion
Several key factors are propelling the U.S. pet insurance market forward. These include:
- Increased Insurance Claims: The higher number of claims being processed reflects a growing acceptance and reliance on pet insurance.
- Rising Underwritten Policies: More pet owners are choosing to protect their animals through insurance.
- Soaring Veterinary Care Costs: The escalating expense of veterinary services is a major catalyst, encouraging pet owners to seek financial protection.
- Initiatives by Key Companies: Strategic moves by major players in the industry are shaping the market.
- Evolving Regulatory Structures: Changes in legal and regulatory frameworks are also at play.
A primary driver is the substantial increase in the annual gross written premium (GWP) for pet insurance. This signifies the rising adoption of pet insurance across the country. The North American Pet Health Insurance Association’s (NAPHIA) State of the Industry (SOI) 2024 report revealed that the GWP increased by over 35% from 2019 to 2023. In 2019, the GWP was approximately $1.5 billion, but it rose to over $3.9 billion by 2023.
Furthermore, the need for insurance is emphasized by the substantial amounts disbursed for pet insurance claims. According to NAPHIA SOI reports, the highest insurance claim amounts for dogs and cats ranged between $20,000 and $60,000 in 2023. These figures underline the escalating costs of veterinary care, motivating pet owners to pursue insurance.
Rising Veterinary Costs and Consumer Behavior
Several recent developments highlight the financial strain on pet owners. An April 2024 article in USA Today cited Bureau of Labor Statistics data indicating a 7.9% increase in urban veterinary service prices within a single year (2023-2024). The article also noted that urban pet care costs have risen by 11% in the past two years and nearly 60% over the last decade.
A survey conducted by USA Today Blueprint among veterinary industry participants found that 91% of pet owners experienced financial stress due to high veterinary costs. Additionally, a Forbes Advisor poll indicated that 63% of pet owners struggle with unexpected vet bills, with about 42% willing to take on debt to cover these expenses.
Potential Market Challenges
While the outlook is positive, some recent events could potentially hinder market growth. In June 2024, Nationwide Mutual Insurance, a major pet insurance provider, announced the cancellation of over 100,000 pet insurance policies, citing rising veterinary care costs as a primary reason. Such decisions create uncertainty for pet owners, which could negatively impact the market.
Report Segmentation and Key Players
The ResearchAndMarkets.com report segments the U.S. pet insurance market by:
- Coverage (Accident & Illness, Accident Only)
- Animal (Dogs, Cats, and Others)
- Sales Channel (Agency, Broker, Direct, Bancassurance, and Others)
- States
The report provides revenue forecasts at country and state levels, analyzing current industry trends across various segments between 2018 and 2030.
Key players in the U.S. pet insurance market include: Trupanion, Inc., Jab Holding Company, Nationwide Mutual Insurance Company, Allianz, Fetch Pet Insurance, Spot Pet Insurance, MetLife, Inc., Odie Pet Insurance, Crum & Foster, ManyPets (EQT Group), and Lemonade Inc.
