of one

Overview of Pet Insurance Industry

In the United States, there is a large market opportunity in the pet insurance industry. Approximately 65% of Americans have pets in their homes, but the vast majority are not covered by insurance. The market has shown significant growth potential, however, more than doubling since 2008. You'll find a deep dive of my research below.

market overview

In North America, nearly 1.8 million pets were insured in 2016, which represents a year-to-year growth rate of 11.5% from 2015. Almost all of these pets, 1.6 million, were insured in the U.S. Total premium volume in the U.S. in 2016 was $836.6 million.

Ninety-eight percent of insured pets in the U.S. are covered through an Accident & Illness plan or an Insurance with Embedded Wellness plan, with two percent covered with an Accident Only plan. The majority (67%) of pet owners who purchase insurance enroll their pets within the first 6 months of ownership. Moreover, 16% enroll their pet after its first vet visit, 12% when the vet recommends it, and 8% when the owner already has another pet enrolled.


In the U.S., fewer than 1% of pets are enrolled in pet insurance, but 65% of Americans have pets in their home. This is compared to other wealthy countries such as Sweden, where 60% of pets are insured, or the UK, where 40% of pets are covered. This means there is a huge gap in coverage and, as a result, major industry potential. Market research indicates that the U.S. is one of the fastest growing countries in this industry. This is largely driven by the high rates of pet ownership in the U.S., which has the world's largest pet population 69,929,000 dogs and 74,059,000 cats. Moreover, there are only about a dozen major players in the U.S. pet insurance industry, which leaves room for expansion and competition. On average, pet insurance plans range from $25-70 per month for dogs and $10-40 per month for cats.

major players

American Modern Insurance Group
Embrace Pet Insurance
Crum & Foster Pet Insurance Group
Healthy Paws
Independence American Insurance Company
PetHealth USA
Pets Best Insurance Services

evolution over time

As of 2008, there were only 680,000 pet insurance policies held by pet owners in the U.S., so the market size has more than doubled since then. Premiums grew by approximately 19% from 2013 to 2016. By 2014, 1.4 million pets were already covered by insurance, meaning most of the growth happened from 2008 to 2014, with the market doubling in that time in terms of policies. One key driver of this market is that pet insurance is the fastest growing optional employee benefit. One in three Fortune 500 companies now offers pet insurance as an option, and 9% of organizations reported plans to start offering this benefit in 2016.


To wrap up, 1.6 million pets are covered by pet insurance in the United States, with a total market value of $836.6 million. Fewer than 1% of pets in the country are covered by insurance, leaving a massive market opportunity. This industry has already grown rapidly, more than doubling since 2008.