Jennifer Rudden
Research Lead Financial Services & Real estate
Pet insurance in North America - statistics & facts
The pet insurance market in North America had grown in the past decade resulting in increased premium costs and volumes. In 2020, the total premium volume for pet insurance in the United States reached almost two billion U.S. dollars and this number reached around 245 million Canadian dollars in Canada. In North America, pet insurance generally covers the payment—in part or in total—for the treatment of an injured or sick animal of an insured owner. Policies may also be paid out when a pet passes away, goes missing or is stolen. The main governing body of the pet insurance industry operating in the United States and Canada is the North American Pet Health Insurance Association (NAPHIA). Some major pet insurance companies in Canada include: Petplan Insurance, Trupanion, and Petsecure. In the U.S., there is Petplan as well, and others like, Healthypaws, Nationwide, and Embrace Insurance.
The origins of pet insurance in North America
The first pet insurance policy ever written, in 1890, focused solely on horses and livestock. The first ever policy issued in the United States, in 1982, was necessitated by the growing popularity of the canine star of the television series Lassie. Since then, the number of pet owners has grown tremendously in North America, as well as the individual number in variety of species. The number of pet cats and dogs in Canada exceeded 15 million in 2022. Meanwhile, U.S. households had almost 70 million dogs alone. Veterinary costs and medicine for pets is often costly for pet owners, which is why they take out insurance to cover these expenses. In the U.S., vet care and medicine account for a substantial part of the overall pet market sales.What is the cost of pet insurance?
The cost of pet insurance varies between animals and regions. The average accident and sickness insurance premiums for dogs in the U.S. are lower than the average insurance premiums for dogs in Canada. Pet insurance plans in North America may also cover preventative care such as vaccinations or elective procedures like neutering. Some companies in both Canada and the United States also offer the option of routine-care (or comprehensive) coverage. Other coverage options include: dental care, alternative treatment as well as the purchase of prescription drugs.
