The pet insurance market size was valued at USD 23.45 billion in 2025 and is projected to grow from USD 27.50 billion in 2026 to USD 98.51 billion by 2034, registering a CAGR of 17.29% during the forecast period (2026–2034). North America dominated the pet insurance market with a market share of 23.24% in 2025.
Pet insurance is a type of insurance policy that helps cover veterinary expenses arising from accidents, illnesses, surgeries, diagnostic tests, and preventive care for companion animals. It reduces the financial burden on pet owners by reimbursing eligible medical costs according to policy terms. Pet insurance is widely used for dogs, cats, and other pets across households, veterinary networks, animal welfare organizations, and pet care service providers.
Pet insurance market demand is driven by rising pet ownership, increasing expenditure on veterinary care, and growing awareness of financial protection against unexpected medical expenses for companion animals. Expanding availability of customizable coverage plans and digital policy management platforms is supporting pet insurance market growth and encouraging higher insurance adoption among pet owners.
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The pet insurance market has indirect exposure to supply chain disruptions because it depends on the uninterrupted availability of veterinary medicines, medical devices, diagnostic equipment, and pet pharmaceuticals rather than manufacturing or distributing physical goods itself. Disruptions in veterinary pharmaceutical supply, medical consumables, diagnostic equipment, and logistics can increase treatment costs, delay non-emergency procedures, and elevate insurance claim values, prompting insurers to refine underwriting models, pricing strategies, and provider network partnerships. These challenges are reshaping the global market ecosystem by accelerating the adoption of digital claims processing, telemedicine, data-driven risk assessment, and closer collaboration between insurers and veterinary service providers to improve operational resilience. The market is experiencing a stair-step recovery, as veterinary supply chains, clinical capacity, and treatment availability improve progressively, enabling a gradual normalization of claims processing and policy growth across major markets.
Pet insurance providers are increasingly extending coverage beyond accident and illness treatment by incorporating wellness and preventive care benefits into policy structures. The North American Pet Health Insurance Association (NAPHIA) recognizes wellness coverage as a dedicated policy component covering vaccinations, diagnostic tests, dental care, and routine preventive services, reflecting its growing role within pet insurance products. This transition is shifting pet insurance from a reimbursement-focused model toward continuous health management.
Pet insurance providers are increasingly incorporating virtual veterinary consultations and telehealth support within their service ecosystems. This transition is extending insurer involvement beyond claim reimbursement by providing policyholders with direct access to veterinary guidance and care navigation services. Figo includes 24/7 live veterinary access through its Pet Cloud platform, reflecting the integration of telehealth services into pet insurance offerings and broader pet health management.
The pet insurance market forecasts investments directed toward digital insurance platforms, preventive pet healthcare models, AI-enabled claims management, and integrated pet wellness ecosystems. Recent funding activity reflects growing investor interest in solutions that combine insurance coverage with preventive care, veterinary services, and digital pet health management platforms.
Key Investment and Funding Activities in Pet Insurance Market, 2026
Vetic
USD 40 Million
In June 2026, Vetic raised funding led by Bessemer Venture Partners, with participation from Greenoaks Capital, Lachy Groom, and JSW Ventures, to expand pet healthcare services and strengthen its pet care ecosystem.
Lassie
USD 75 Million (Series C)
In February 2026, the company secured Series C funding to expand its prevention-first pet insurance platform across Europe, enhance automation capabilities, and strengthen digital pet insurance offerings.
Rising Veterinary Treatment Costs and Growing Pet Ownership Drives Market
Increasing veterinary treatment costs are encouraging pet owners to seek financial protection against unexpected medical expenses. Advanced diagnostics, surgeries, specialized treatments, and emergency care can place a significant financial burden on households, making insurance an attractive option for managing healthcare costs. As pet owners become more willing to pursue advanced medical care for companion animals, demand for insurance coverage continues to increase, supporting pet insurance market growth.
The increasing role of pets as family companions is expanding demand for healthcare and financial protection services. Higher pet adoption rates and increasing spending on pet wellbeing are encouraging owners to secure insurance coverage that helps manage unforeseen veterinary expenses. This shift in pet care priorities is contributing to pet insurance market expansion by increasing policy adoption across a broader companion animal population.
Pet Care Affordability and Alternative Financing Options Restrains Market Expansion
Rising household expenses can make pet insurance a lower spending priority for many pet owners, particularly in price-sensitive markets. Insurance premiums have continued to increase alongside veterinary costs, creating affordability concerns that can limit policy adoption and renewal rates. According to the American Pet Products Association, US pet owners are projected to spend approximately USD 165 billion on their pets in 2026, reflecting growing financial commitments that may constrain additional spending on insurance products.
Alternative pet healthcare financing options can also reduce demand for traditional insurance coverage. Veterinary payment plans, healthcare credit programs, and employer-sponsored pet benefits provide pet owners with other ways to manage treatment expenses. Synchrony reported that its CareCredit network serves more than 270,000 provider locations, including veterinary clinics, expanding access to non-insurance payment solutions and reducing reliance on standalone pet insurance policies.
Expansion of Employer-sponsored and Specialized Pet Insurance Programs Creates Growth Opportunity for Market Players
The growing inclusion of pet insurance within employee benefits packages and the rising demand for customized coverage are creating a growth opportunity for pet insurance providers to expand beyond traditional distribution channels. Employers are increasingly incorporating pet-related benefits into workforce retention strategies, while pet owners seek tailored protection for multi-pet households, breed-specific needs, travel-related risks, and premium care services. Pet insurance providers can strengthen policy penetration through corporate partnerships and differentiated product offerings that address evolving consumer preferences.
The expansion of workplace-sponsored coverage and specialized insurance solutions is supporting access to new customer segments and creating opportunities for product innovation. As pet ownership patterns continue to evolve, insurers are expected to diversify coverage options and develop more personalized protection plans, supporting long-term market growth.
Limited Policy Awareness and Claims Complexity Challenges Market Growth
Limited understanding of policy terms, waiting periods, exclusions, and reimbursement structures continues to affect pet insurance adoption. Differences in coverage conditions across providers such as Trupanion, Nationwide Pet Insurance, and Pumpkin Pet Insurance can make policy comparisons difficult, slowing purchasing decisions among pet owners.
Claims administration also remains a challenge due to variations in veterinary billing practices, medical documentation requirements, and reimbursement procedures. Claims involving chronic illnesses, hereditary conditions, or pre-existing medical histories often require additional verification, extending processing timelines and increasing administrative complexity for insurers.
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The global market is bifurcated into lifetime coverage and accident only. The lifetime coverage segment dominates the global market over the forecast period. Key drivers of the lifetime coverage segment are the high cost of diagnosis and treatment, the rise in the companion animal population, and increased awareness about pet insurance. Contractual policies cover accidents and illnesses and the cost of surgery and hospitalization, whereas lifetime pet insurance covers companion animals for a lifetime and is comparatively more expensive. However, this is the most favorable pet insurance policy for young animals. Key players in the market are Figo Pet Insurance, Nationwide, Pet Assure, Healthy Paws Pet Insurance, Embrace Pet Insurance, and Petplan.
The global market is divided into dogs, cats, and others. The dog segment has been the largest revenue contributor to the market over the forecast period. An increase in dog ownership worldwide is the key driver of the segment. The increasing importance of pet health and high veterinary healthcare costs are expected to aid further market growth. As per the North American Pet Health Insurance Association (NAPHIA), in 2017, 89.7 million dogs in the U.S. Rabies, parvovirus, kennel cough, heartworm, diabetes, and cancer are major diseases and disorders reported in dogs. Additionally, the companies in this segment focus on reducing premium costs through innovative methods to track pet health. For instance, in April 2019, MoreThan, a Royal and Sun Alliance-backed insurance technology company, launched a dog fitness tracker in collaboration with Pitpat.
The global market is segmented into agency, broker, bancassurance, and direct sales channels. The pet insurance industry is dominated by the direct sales segment because of its capacity to provide customized services, affordable rates, and adaptable policy alternatives. The insurance company and the client deal directly in direct sales, frequently over the phone or in person. This strategy creates long-lasting relationships with clients, which promotes trust and loyalty. Insurance companies may stand out from the competition by offering versatile insurance options and affordable pricing, which will draw in more clients. The popularity of direct sales has increased due to the emergence of digital platforms, which has allowed insurance companies to save expenses, simplify operations, and provide customers with more effective services.
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Based on region, the global pet insurance market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
In the North American region, the market holds a dominant position and is poised for significant expansion throughout the forecast period. This growth is primarily driven by high pet ownership rates, escalating veterinary costs, and an increasing awareness of the benefits of pet insurance. According to the North American Pet Health Insurance Association (NAPHIA), the number of insured pets in the United States and Canada surged to 3.9 million in 2023, marking a notable increase from 3.1 million in 2022. This rise in insured pets reflects a growing trend among pet owners to seek financial protection for their animals. In the United States, pet ownership rates have reached new heights, with the American Pet Products Association (APPA) reporting that 70% of households owned pets in 2023, up from 67% in 2022. This high level of pet ownership, combined with rising veterinary costs, has significantly boosted the demand for pet insurance.
The American Veterinary Medical Association (AVMA) highlighted that the average cost of a routine veterinary visit increased by 4.8% in 2023, compared to 3.2% in 2022. This uptick in veterinary expenses underscores the growing appeal of pet insurance as a financial safeguard for pet owners. Furthermore, the North American pet insurance industry benefits from a robust presence of established insurance providers and an increasing level of consumer awareness. The American Animal Hospital Association (AAHA) reported that 62% of pet owners were aware of pet insurance in 2023, up from 56% in 2022. This rising awareness indicates a positive shift towards greater adoption and utilization of pet insurance products in the region.
Europe has emerged as a significant player in the global market, driven by rising pet ownership, escalating veterinary costs, and supportive government policies. The European Pet Food Industry Federation (FEDIAF) reports a 3.6% increase in households with pets in 2023, up from 2.9% in 2022. This rise in pet ownership has boosted the demand for pet insurance, evidenced by a growth in insured pets from 5.4 million in 2022 to 6.2 million in 2023, as reported by the European Pet Insurance Association (EPIA).
Concurrently, the Federation of Veterinarians of Europe (FVE) noted a 5.1% rise in average veterinary costs in 2023, compared to 4.3% the previous year. This uptick in veterinary expenses underscores the need for insurance coverage. Additionally, government initiatives across Europe are fostering responsible pet ownership and encouraging insurance uptake. For example, the UK's Department for Environment, Food and Rural Affairs (DEFRA) actively promotes pet insurance to mitigate unforeseen veterinary costs. These combined factors contribute to Europe’s growing prominence in the pet insurance sector, making it a key region in the global market.
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The pet insurance market competitive landscape is fragmented, with specialty pet insurers, traditional insurance providers, and Insurtech companies operating across the market ecosystem. Established players compete through comprehensive coverage, strong distribution networks, brand recognition, and efficient claims management. Emerging companies focus on digital platforms, flexible policies, personalized plans, and enhanced customer experience to expand their market presence.
June 2026: Odie Pet Insurance partnered with Haven Pet Insurance to expand embedded pet insurance distribution.
March 2026: Zurich Australia and Honey Insurance launched a new pet insurance offering in Australia.
January 2026: Progressive Insurance launched a pet insurance product for cats and dogs, underwritten by Progressive and administered by Companion Protect.
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Author's Details
Healthcare Lead
Debashree Bora is a Healthcare Lead with over 7 years of industry experience, specializing in Healthcare IT. She provides comprehensive market insights on digital health, electronic medical records, telehealth, and healthcare analytics. Debashree’s research supports organizations in adopting technology-driven healthcare solutions, improving patient care, and achieving operational efficiency in a rapidly transforming healthcare ecosystem.
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