Pet Insurance Market Trends

ID: MRFR/BS/10877-HCR

200 Pages

Rahul Gotadki

October 2025

Pet Insurance Market Research Report By Coverage Type (Accident Only, Accident and Illness, Wellness), By Animal Type (Dogs, Cats, Birds, Exotic Pets), By Distribution Channel (Direct Insurance, Brokers, Online), By Policy Type (Comprehensive Coverage, Limited Coverage, Time-Limited Coverage) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Market Trends

Key Emerging Trends in the Pet Insurance Market

The growth of awareness of the importance of pets in homes is reflected by some important trends being observed in the Pet Insurance market. Similarly, there is a rapidly increasing demand for coverage provided by Pet Insurance. On one hand, pet owners perceive valuable financial advantages from having insurance on many costs related to their health care. In contrast, veterinary care becomes cheaper through timely medical attention from vet doctors. Technology integration into the insurance buying process has reshaped pet insurance markets with platforms such as digital and mobile apps, letting pet masters engage in information search as well as claims processing policy updates, among others, when necessary. At the same time, technology has made personalization possible, meaning that plans for animal protection could be designed specifically for unique feature requirements, thus transitioning Pet Insurance into a more personalized approach. Aspects such as preventive care and wellness coverage are emerging trends within the Pet Insurance market. More pet owners have started realizing that regular checkups offered by veterinarians help save money that would have been spent on treating sicknesses caused by a lack of vaccines during the early stages of pets' lives. This includes extended provision of coverage types that address complementary & alternative medicine (CAM). Therefore, today, pet insurances include treatments like acupuncture or physiotherapy just because people want them as part of a complete healthcare package for their animals. At the same time, they still appreciate other therapies outside traditional veterinary procedures. The flexibility provided by customizing policies is a major highlight of the Pet Insurance market. This calls for policies that fit pets' needs and circumstances. Competition among insurers is currently on the rise, leading to changes in their coverage and pricing approaches. Moreover, we notice that there are increasing partnerships with other key stakeholders in the pet care industry, such as veterinary clinics, technology companies, and retailers, by the Pet Insurance providers themselves. Demand for Pet Insurance has gone global now since it has expanded beyond traditional markets. Awareness and education about Pet Insurance continue to be challenges affecting current trends within this market.

Market Highlights

Author

Rahul Gotadki

Assistant Manager

He holds an experience of about 7+ years in Market Research and Business Consulting, working under the spectrum of Life Sciences and Healthcare domains. Rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. His expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. In addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives

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FAQs

What is the current valuation of the Pet Insurance Market as of 2024?

The Pet Insurance Market was valued at 11.21 USD Billion in 2024.

What is the projected market size for the Pet Insurance Market by 2035?

The market is projected to reach 39.46 USD Billion by 2035.

What is the expected CAGR for the Pet Insurance Market during the forecast period 2025 - 2035?

The expected CAGR for the Pet Insurance Market during 2025 - 2035 is 12.12%.

Which coverage type has the highest valuation in the Pet Insurance Market?

Accident and Illness coverage had a valuation of 7.56 USD Billion in 2024 and is expected to grow significantly.

How do dogs and cats compare in terms of market valuation within the Pet Insurance sector?

In 2024, dogs accounted for 5.0 USD Billion while cats represented 4.0 USD Billion, indicating a strong preference for dog insurance.

What distribution channel is projected to have the highest growth in the Pet Insurance Market?

Direct Insurance, valued at 4.48 USD Billion in 2024, is likely to see substantial growth in the coming years.

Which key players dominate the Pet Insurance Market?

Key players include Trupanion, Nationwide, Petplan, Healthy Paws, and Embrace, among others.

What is the valuation of wellness coverage in the Pet Insurance Market as of 2024?

Wellness coverage was valued at 2.97 USD Billion in 2024, indicating a growing interest in preventive care.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Pet Insurance Market Size was estimated at 11.21 USD Billion in 2024. The Pet Insurance industry is projected to grow from 12.57 USD Billion in 2025 to 39.46 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 12.12 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Pet Insurance Market is experiencing robust growth driven by increasing awareness and technological advancements.

North America remains the largest market for pet insurance, reflecting a strong consumer base and established infrastructure. The Asia-Pacific region is emerging as the fastest-growing market, driven by rising pet ownership and changing consumer attitudes towards pet care. The Accident and Illness segment continues to dominate the market, while the Accident Only segment is witnessing rapid growth due to its affordability. Key market drivers include increasing pet ownership rates and rising veterinary costs, which are fostering greater awareness of pet health insurance.

Market Size & Forecast

2024 Market Size	11.21 (USD Billion)
2035 Market Size	39.46 (USD Billion)
CAGR (2025 - 2035)	12.12%
Largest Regional Market Share in 2024	North America

Major Players

Trupanion (US), Nationwide (US), Petplan (GB), Healthy Paws (US), Embrace (US), Figo (US), Pets Best (US), ASPCA Pet Health Insurance (US), PetFirst (US)

Market Trends

The Pet Insurance Market is currently experiencing a notable transformation, driven by a combination of evolving consumer preferences and advancements in veterinary care. As pet ownership continues to rise, there is an increasing recognition of the financial implications associated with pet healthcare. This awareness appears to be fostering a greater demand for insurance products tailored specifically for pets. Moreover, the integration of technology in the insurance sector, such as mobile applications and telemedicine, seems to enhance accessibility and convenience for pet owners, thereby potentially expanding the market further. In addition, the Pet Insurance Market is witnessing a shift towards more comprehensive coverage options. Pet owners are increasingly seeking policies that not only cover accidents and illnesses but also preventive care and wellness services. This trend indicates a growing understanding of the importance of proactive health management for pets. Furthermore, as more insurers enter the market, competition is likely to drive innovation and improve service offerings, ultimately benefiting consumers. Overall, the Pet Insurance Market appears poised for continued growth, reflecting changing attitudes towards pet care and the increasing value placed on the health and well-being of pets.

Rising Awareness of Pet Health Costs

There is a growing recognition among pet owners regarding the financial burden associated with veterinary care. This awareness is likely to drive demand for insurance products that can alleviate unexpected expenses.

Technological Integration in Insurance

The incorporation of technology, such as mobile apps and telehealth services, is enhancing the accessibility of pet insurance. This trend may lead to increased consumer engagement and satisfaction.

Shift Towards Comprehensive Coverage

Pet owners are increasingly interested in policies that encompass a wider range of services, including preventive care. This shift suggests a proactive approach to pet health management.

Pet Insurance Market Market Drivers

Rising Veterinary Costs

The Pet Insurance Market is significantly influenced by the rising costs associated with veterinary care. As veterinary services become more advanced and specialized, the expenses incurred by pet owners are escalating. Reports indicate that the average cost of veterinary care has increased by over 20% in recent years. This trend compels pet owners to consider insurance as a viable option to mitigate financial burdens. The Pet Insurance Market is likely to benefit from this shift, as more individuals seek coverage to offset the high costs of treatments, surgeries, and preventive care. Insurers may respond by offering more comprehensive plans that cater to the evolving needs of pet owners, thereby enhancing the overall market landscape.

Increasing Pet Ownership Rates

The Pet Insurance Market appears to be experiencing a notable surge in pet ownership rates. As more households welcome pets into their lives, the demand for pet insurance is likely to rise. Recent statistics indicate that approximately 67% of households own a pet, a figure that has steadily increased over the years. This growing trend suggests that more pet owners are recognizing the importance of safeguarding their pets' health through insurance. Consequently, the Pet Insurance Market is poised for expansion as new pet owners seek financial protection against unexpected veterinary expenses. This increase in pet ownership not only drives demand for insurance products but also encourages insurers to innovate and tailor their offerings to meet the diverse needs of pet owners.

Increased Focus on Preventive Care

The Pet Insurance Market is increasingly aligning with a broader trend towards preventive care in pet health. Pet owners are becoming more proactive in managing their pets' health, seeking regular check-ups and vaccinations to prevent serious illnesses. This shift is likely to drive demand for insurance products that cover preventive services, such as wellness plans and routine examinations. As pet owners recognize the long-term benefits of preventive care, the Pet Insurance Market may see a rise in policies that cater to these needs. Insurers could respond by developing tailored plans that emphasize preventive measures, thereby enhancing customer satisfaction and loyalty.

Growing Awareness of Pet Health Insurance

The Pet Insurance Market is witnessing a growing awareness among pet owners regarding the benefits of health insurance for their pets. Educational campaigns and increased visibility of insurance options have contributed to this trend. Surveys indicate that a significant percentage of pet owners are now aware of the existence and advantages of pet insurance, with many expressing interest in obtaining coverage. This heightened awareness is likely to drive demand for insurance products, as pet owners seek to protect their furry companions from unforeseen medical expenses. The Pet Insurance Market may see a shift in consumer behavior, with more individuals prioritizing insurance as an essential aspect of responsible pet ownership.

Technological Advancements in Insurance Services

The Pet Insurance Market is being transformed by technological advancements that enhance the accessibility and efficiency of insurance services. Innovations such as mobile applications and online platforms allow pet owners to easily compare policies, file claims, and manage their insurance needs. This technological integration not only streamlines the customer experience but also attracts a tech-savvy demographic of pet owners. As more individuals embrace digital solutions, the Pet Insurance Market is likely to expand, with insurers adapting their offerings to meet the demands of a modern consumer base. The potential for telemedicine and virtual consultations further indicates a shift towards more convenient and comprehensive insurance solutions.

Market Segment Insights

By Coverage Type: Accident and Illness (Largest) vs. Accident Only (Fastest-Growing)

In the Pet Insurance Market, the coverage type segment shows a clear distribution among three key values: Accident Only, Accident and Illness, and Wellness. Accident and Illness coverage remains the largest segment, capturing a significant portion of the market, as pet owners seek comprehensive solutions to safeguard against unexpected health issues. In comparison, Accident Only coverage is experiencing faster adoption as it appeals to budget-conscious pet owners looking for essential protection without the added cost of illness coverage, leading to its rapid growth in recent years.

Accident and Illness (Dominant) vs. Accident Only (Emerging)

The Accident and Illness coverage is the dominant force in the pet insurance market, offering a holistic approach to pet health that encompasses both accidental injuries and illnesses. This comprehensive coverage attracts many pet owners due to its assurance that a range of health issues will be covered. Meanwhile, the Accident Only segment is emerging as a popular choice for cost-sensitive consumers who prioritize basic coverage for unexpected accidents over comprehensive illness protection. This trend indicates a growing segment of pet owners who are looking for affordable options while still ensuring their pets have some level of protection against sudden accidents.

By Animal Type: Dogs (Largest) vs. Cats (Fastest-Growing)

In the Pet Insurance Market, the animal type segment is largely dominated by dogs, capturing a significant share. Dogs have long been considered members of the family, leading to higher insurance uptake among dog owners. Cats come closely behind, but they are increasingly gaining traction, demonstrating the most rapid growth in recent years as more cat owners recognize the importance of insurance for their feline companions. The rest of the segment includes birds and exotic pets, which represent a smaller but notable portion of the market.

Dogs (Dominant) vs. Cats (Emerging)

When considering the dominant segment, dogs account for the bulk of pet insurance policies, reflecting a strong cultural inclination towards responsible pet ownership. Insurance for dogs often covers a wide range of health issues and preventive measures, appealing to a broad audience. In contrast, cats are emerging as a key focus area for growth, with a rising awareness of the reimbursements available for veterinary care. More innovative insurance products are tailored specifically for cats, offering unique coverage nuances that appeal to cat owners. As awareness continues to spread, this segment shows promising potential for increased market share.

By Distribution Channel: Direct Insurance (Largest) vs. Brokers (Fastest-Growing)

In the Pet Insurance Market, the distribution among channels reveals a robust predominance of Direct Insurance. This segment, which allows consumers to purchase policies directly, has established itself as the leading method of distribution, appealing to pet owners looking for convenience and simplicity in securing coverage. Brokers, while currently capturing a smaller share, are quickly gaining traction as intermediaries provide, tailored advice and policy comparisons for clients.

Brokers: Fastest-Growing vs. Direct Insurance: Dominant

Direct Insurance represents a significant portion of the pet insurance market owing to its customer-centric approach, enabling pet owners to engage directly with insurance providers. This segment benefits from reduced costs and streamlined processes, making it appealing for budget-conscious consumers. Conversely, Brokers, as a rapidly emerging force, offer personalized services, enhancing customer experience through expert guidance. They are gaining ground as consumers increasingly value informed decision-making when it comes to choosing pet insurance. The combined growth of digital platforms and shifting consumer preferences towards flexible insurance solutions positions Brokers as a critical contributor to the evolving landscape of pet insurance distribution.

By Policy Type: Comprehensive Coverage (Largest) vs. Limited Coverage (Fastest-Growing)

The Pet Insurance Market showcases a diverse landscape in its Policy Type segment, with Comprehensive Coverage leading significantly in market share. This type of coverage offers extensive protection, including a wide range of veterinary services, which resonates well with pet owners seeking thorough care options for their pets. In contrast, Limited Coverage, while smaller in overall share, has been catching up rapidly as pet owners look for more affordable insurance solutions that still provide essential protections without extensive costs.

Comprehensive Coverage (Dominant) vs. Time-Limited Coverage (Emerging)

Comprehensive Coverage stands as the dominant force in the Pet Insurance Market, appealing to pet owners who prioritize overall health security for their animals. This type of policy typically includes various services such as preventive care, hospitalization, and surgeries, ensuring that pet owners can address both unexpected illnesses and routine health maintenance. On the other hand, Time-Limited Coverage, classified as an emerging policy option, is gaining traction due to its flexible pricing and defined limits on coverage duration. This option attracts budget-conscious shoppers who want to ensure their pets are covered for a specific timeframe or until a defined monetary limit is reached, contributing to the increasing diversification of the market.

Get more detailed insights about Pet Insurance Market Research Report - Forecast to 2035

Regional Insights

North America : Leading Market for Pet Insurance Market

North America is the largest market for pet insurance, accounting for approximately 65% of the global market share. The growth is driven by increasing pet ownership, rising veterinary costs, and a growing awareness of pet health insurance benefits. Regulatory support and favorable policies further enhance market dynamics, making it a robust environment for pet insurance providers. The U.S. is the primary contributor, followed by Canada, which holds about 15% of the market share. In North America, key players like Trupanion, Nationwide, and Healthy Paws dominate the landscape, offering a variety of plans tailored to pet owners' needs. The competitive environment is characterized by innovation in policy offerings and customer service enhancements. The presence of established companies ensures a high level of trust among consumers, contributing to the market's sustained growth. The trend towards digital platforms for policy management is also gaining traction, further enhancing customer engagement.

Europe : Emerging Market with Growth Potential

Europe is witnessing significant growth in the pet insurance market, currently holding about 20% of the global share. The increasing trend of pet ownership, coupled with rising awareness of pet health, is driving demand. Regulatory frameworks in countries like the UK and Germany are evolving to support the industry, fostering a conducive environment for growth. The market is expected to expand as more pet owners recognize the financial benefits of insurance. Leading countries in Europe include the UK, Germany, and France, where major players like Petplan and other local insurers are making strides. The competitive landscape is marked by a mix of established companies and new entrants, all vying for market share. The focus on customer-centric services and innovative policy options is shaping the market, with a notable increase in digital solutions for policy management. The European market is poised for further expansion as consumer awareness continues to grow.

Asia-Pacific : Rapidly Growing Pet Insurance Market Sector

The Asia-Pacific region is emerging as a significant player in the pet insurance market, currently holding about 10% of the global share. The growth is fueled by increasing disposable incomes, urbanization, and a rising trend of pet ownership. Countries like Japan and Australia are leading the market, with regulatory frameworks gradually adapting to support the insurance sector. The demand for pet insurance is expected to rise as awareness of pet health issues increases among consumers. In this region, key players include local insurers and international companies expanding their footprint. The competitive landscape is evolving, with a focus on tailored insurance products that cater to the unique needs of pet owners. The presence of digital platforms for policy management is also gaining traction, enhancing customer experience and engagement. As the market matures, innovative solutions and customer-centric approaches will be crucial for sustained growth.

Middle East and Africa : Emerging Market with Untapped Potential

The Middle East and Africa region is an emerging market for pet insurance, currently holding about 5% of the global share. The growth is driven by increasing pet ownership, urbanization, and a growing awareness of the importance of pet health. Regulatory frameworks are still developing, but there is a noticeable shift towards supporting the pet insurance sector. As more consumers recognize the benefits of insurance, the market is expected to expand significantly in the coming years. Leading countries in this region include South Africa and the UAE, where the presence of key players is gradually increasing. The competitive landscape is characterized by a mix of local and international insurers, all aiming to capture the growing demand. The focus on customer education and tailored insurance products is essential for market penetration. As the region continues to develop, innovative solutions and strategic partnerships will play a vital role in shaping the future of pet insurance.

Key Players and Competitive Insights

The Pet Insurance Market is currently characterized by a dynamic competitive landscape, driven by increasing pet ownership and rising awareness of pet health. Major players such as Trupanion (US), Nationwide (US), and Healthy Paws (US) are strategically positioning themselves through innovation and digital transformation. Trupanion (US) focuses on providing comprehensive coverage with a unique subscription model, which appears to resonate well with pet owners seeking predictable costs. Nationwide (US), on the other hand, emphasizes its extensive experience in the insurance sector, leveraging its brand trust to attract customers. Healthy Paws (US) is notable for its commitment to customer service and rapid claims processing, which enhances customer loyalty and satisfaction. Collectively, these strategies contribute to a competitive environment that is increasingly focused on customer-centric solutions and technological advancements.

In terms of business tactics, companies are increasingly localizing their services and optimizing their supply chains to enhance efficiency and responsiveness. The Pet Insurance Market is moderately fragmented, with a mix of established players and emerging startups. This fragmentation allows for diverse offerings, yet the collective influence of key players like Trupanion (US) and Nationwide (US) shapes market trends and consumer expectations.

In August 2025, Trupanion (US) announced a partnership with a leading veterinary telehealth provider, aiming to integrate telemedicine services into its insurance offerings. This strategic move is significant as it not only enhances the value proposition for customers but also positions Trupanion (US) at the forefront of the digital transformation trend within the industry. By facilitating easier access to veterinary care, Trupanion (US) is likely to improve customer satisfaction and retention.

In September 2025, Healthy Paws (US) launched a new mobile app designed to streamline the claims process for pet owners. This initiative reflects a growing trend towards digitalization in the Pet Insurance Market, as it allows for quicker claims submissions and real-time updates. The app's introduction may enhance user experience and set a new standard for customer engagement in the sector.

In October 2025, Nationwide (US) expanded its coverage options to include alternative therapies, such as acupuncture and chiropractic care for pets. This strategic expansion indicates a shift towards more holistic pet care solutions, appealing to a growing segment of pet owners who prioritize comprehensive health management for their animals. By diversifying its offerings, Nationwide (US) is likely to attract a broader customer base and strengthen its market position.

As of October 2025, the Pet Insurance Market is witnessing trends such as digitalization, sustainability, and the integration of artificial intelligence in claims processing. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to enhance their service offerings and operational efficiencies. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition to a focus on innovation, technology, and supply chain reliability. Companies that can effectively leverage these trends are likely to secure a competitive edge in the market.

Key Companies in the Pet Insurance Market market include

Industry Developments

The Pet Insurance Market has recently seen significant developments. In October 2023, Trupanion announced an expansion of its services in Europe, aiming to tap into the growing demand for pet health coverage. Meanwhile, Healthy Paws was recognized for its innovative claims processing technology, further enhancing customer experience in the sector.

Growth in the market valuation for pet insurance companies like Pets Best and Petplan reflects a robust increase in pet ownership and the rising awareness of pet health care.

In recent years, Figo Pet Insurance Market launched a new customizable policy in September 2022, catering to the needs of pet owners. Moreover, in March 2022, Embrace Pet Insurance Market underwent a merger with a leading health technology firm, enhancing its service offerings.

Currently, there have been discussions of other strategic partnerships among companies like Nationwide and ASPCA Pet Health Insurance, reflecting a trend toward consolidation in the market. The overall outlook for the Pet Insurance Market remains positive as it continues to adapt to changing consumer demands and advancements in technology.

Future Outlook

Pet Insurance Market Future Outlook

The Pet Insurance Market is projected to grow at a 12.12% CAGR from 2024 to 2035, driven by increasing pet ownership, rising veterinary costs, and enhanced consumer awareness.

New opportunities lie in:

Development of telehealth services for pet consultationsIntegration of AI-driven claims processing systemsExpansion of customizable insurance plans for niche pet breeds

By 2035, the Pet Insurance Market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Pet Insurance Market Animal Type Outlook

Dogs
Cats
Birds
Exotic Pets

Pet Insurance Market Policy Type Outlook

Comprehensive Coverage
Limited Coverage
Time-Limited Coverage

Pet Insurance Market Coverage Type Outlook

Accident Only
Accident and Illness
Wellness

Pet Insurance Market Distribution Channel Outlook

Direct Insurance
Brokers
Online

Report Scope

MARKET SIZE 2024	11.21(USD Billion)
MARKET SIZE 2025	12.57(USD Billion)
MARKET SIZE 2035	39.46(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.12% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of telemedicine and digital platforms enhances accessibility in the Pet Insurance Market.
Key Market Dynamics	Rising consumer awareness and demand for comprehensive pet health coverage drive competitive dynamics in the pet insurance market.
Countries Covered	North America, Europe, APAC, South America, MEA