North America Pet Insurance Market

North America Pet Insurance Market Size (2024 to 2032)

The size of the North American pet insurance market was valued at USD 1.28 billion in 2023. This market is expected to grow at a CAGR of 13.3% from 2024 to 2032 and be worth USD 3.94 billion by 2032 from USD 1.45 billion in 2024. 

Growing pet adoption in the North American region is one of the major factors propelling the pet insurance market in North America. Increasing pet training centers, primarily for dogs and cats in the region, also raises the adoption of pets in their homes for specific tasks and peaceful minds. According to a recent survey, nearly 60% of households adopt pets. Increasing homestay and an increasing number of people living outside of the cities are the factors that increase pet adoption. Older people and individuals also increase pet adoption for companionship in their homes and security purposes. According to a recent survey, people living alone feel good about having a pet which changes their mood and helps them avoid dangerous thoughts due to a lot of stress. All these factors drive the pet insurance market forward.

The expenditure on pets in the United States has been continuously rising recently. This expenditure includes food, supplies, counter medicine, veterinarian care, live animal purchases, and grooming and boarding, which drives regional growth. The pet population in the United States has also been on a continuous rise, which has given ample scope for the pet insurance market in this region to thrive. The United States has the most significant global population of pet animals, which has aided North America in becoming the most extensive market shareholder of the worldwide pet insurance market.

MARKET DRIVERS

Increasing awareness around pet insurance among owners across North America is another major factor boosting this region's pet insurance market expansion. Numerous awareness campaigns have been organized across North American countries to increase awareness around pet insurance. The insurance providers' advertising and marketing efforts further accelerate the market’s growth rate. Most insurance companies keep informing people about the insurance policies and how they are helpful during the pet's lifetime. In addition, increasing customized options for pet owners in pet insurance favors market growth. Furthermore, the rising medical cost in the veterinary segment drives the pet insurance market forward due to increasing viral infection among animals, which raises the cost of treatment for pets. Insurance provides less cost for the treatment or complete recovery of the money for chronic diseases in pets. They also provide some pet care products in this plan.

In addition, the pet insurance market in North America is likely to grow during the forecast period owing to the availability of key market players in the region, insufficient coverage of pet insurance in the U.S, reformations of insurance policies, adoption of technology to process claims, which makes it a more natural way to claim insurance. Furthermore, the emergence of different types of insurance policies based on the pet's health conditions and the collaborations between the pet insurance companies and hospitals, as well as an increasing number of veterinary clinics, are expected to boost growth opportunities for the North American pet insurance market.

MARKET RESTRAINTS

However, less awareness regarding pet insurance among the population in North America, high costs associated with premium pet insurance policies, lack of regulatory approvals, and people who cannot afford large of money pets are restricting the growth rate of the North American pet insurance market. Most companies are keeping the high cost of buying insurance policies for a pet. Increasing fraud insurance companies also impede market growth.

REGIONAL ANALYSIS

Regionally, the North American pet insurance market is currently leading the global market due to the existence of many key players, the considerable amount spent on the pets of pet owners, the availability of a variety of pet insurance policies due to the presence of several market players and the willingness to spend on pet owners' pets. During the COVID-19 pandemic, nearly 1 in 5 households adopted a pet, according to the American Society for the Prevention of Cruelty to Animals. In addition, increasing start-ups for insurance companies in this region drives the market forward. To expand their companies, different insurance policies are created for pets. They also provide different types of benefits in the insurance policy to attract many people for pet insurance. All these factors drive the market forward in the North American region.

The U.S. pet insurance market is estimated to hold the largest share in the North American market, followed by Canada. A growing number of pet lovers is propelling the market's growth in the United States. Recently, increasing pet accidents in this region have also driven the pet insurance market. Most companies provide insurance for the death and accidents of the pet, as well as up to 90% recovery for the treatment.

The Canadian Pet Insurance Market has witnessed a robust CAGR during the forecast period. Nearly 10% of people adopt pets every year. Dogs and cats are the most adopted pets in this region. Increasing veterinary hospitals in this region also increase pet adoption, which results in an increase in pet insurance. Additionally, increasing government investment in building veterinary clinics also boosts the market. According to the North American Pet Health Insurance Association, in 2019, there were 302,460 pets insured in Canada. Dog owners take most of the pet insurance growth.

KEY MARKET PLAYERS

A few of the notable companies operating in the North American pet insurance market profiled in this report are Petplan Pet Insurance, Embrace Pet Insurance Agency, Royal & Sun Alliance (RSA), Pethealth Inc., Agria Pet Insurance, Pet first Healthcare, Nationwide Pet Insurance, PetSure Pty Ltd., Petsecure Pet Health Insurance and Hartville Group.

MARKET SEGMENTATION

This research report on the North American pet insurance market is segmented and sub-segmented into the following categories.

By Policy

• Cat Insurance
• Dog Insurance
• Horse Insurance
• Rabbit Insurance
• Exotic Pet Insurance
• Others

By Policy Type

• Lifetime Cover
  • Accidental Cover
  • Illness Cover
• Non-lifetime Cover
  • Accidental Cover
  • Illness Cover
• Others

By Country

• United States
• Canada
• Mexico
• Rest of North America