United States Pet Insurance Market

United States Pet Insurance Market:

United States pet insurance market size is projected to exhibit a growth rate (CAGR) of 10.80% during ​2024-2032​. The increasing trend of humanizing pets, which has led to a higher demand for comprehensive healthcare services, including insurance, is driving the pet insurance market in United States.

United States Pet Insurance Market Analysis:

• Major Market Drivers: The growing trend of pet humanization coupled with increasing awareness towards the importance of pet healthcare among pet owners is stimulating the market growth.
• Key Market Trends: According to the United States pet insurance market predictions, the escalating veterinary care costs, along with the presence of numerous pet insurance providers offering customizable plans to cater to the diverse needs of pet owners are expected to stimulate the market demand.
• Challenges and Opportunities: One of the primary factors hampering the market growth is the lack of awareness regarding the benefits associated with pet insurance. However, collaborations between pet insurance companies and other pet-related businesses, such as veterinary clinics, pet retailers, and shelters, can help increase awareness and distribution of pet insurance products.

United States Pet Insurance Market Trends:

Rising Humanization of Pets

The rising humanization of pets is a significant driver of growth in the United States pet insurance market. For instance, in the United States, approximately 29% of homes had cats and 44.5% had dogs as of 2022. The number of dog-owning households in the United States rose by 6.1 percentage points, from 38.4% to 44.5%, between 2016 and 2022, while the percentage of cat-owning households increased by 4 percentage points, from 25% to 29%. Pets are no longer just animals that live in homes; they are often considered cherished members of the family. For instance, according to an article published by the Pew Research Center in July 2023, nearly 50% of pet owners consider their pets as a part of their family. In addition, pet owners are spending more on their pets, not only on essentials like food and grooming but also on veterinary care, medications, and other healthcare services. For instance, according to the article published by Forbes in January 2024, dog owners in the U.S. spend the most on veterinary care ($367 per year), food ($339 per year), and grooming (99$ per year). As pets are viewed as family members, pet owners are more likely to seek out comprehensive healthcare solutions, including insurance, to ensure their pets receive the best possible care. For example, according to the Forbes Advisor analysis in 2024, the average cost of pet insurance for dogs was $44 per month, while the average cost for cats was $30 per month. These factors are contributing to the United States pet insurance market share.

Technological Advancements

Technological advancements are playing a significant role in shaping the United States pet insurance market, offering new opportunities for insurers to streamline processes, enhance customer experiences, and improve the overall efficiency of their operations. For instance, in April 2023, Trupanion, a medical insurance provider for cats and dogs in the United States, automated over 60% of invoices filed through its free, patented, web-based vet portal, enabling lightning-fast invoice processing and direct payments to veterinary facilities at checkout. Moreover, the integration of telemedicine and virtual care services into pet insurance offerings has expanded access to veterinary expertise and healthcare for pet owners. Through telemedicine platforms, pet owners can consult with licensed veterinarians remotely, receive advice on pet health issues, and even obtain prescriptions, reducing the need for in-person veterinary visits and providing more convenient care options. For instance, in December 2023, Spot Pet Insurance, a pet insurance provider, partnered with AAA. This collaborative partnership aimed to provide AAA members with unprecedented access to comprehensive and inexpensive pet insurance coverage for the pets in U.S. In addition, Spot Pet's plans include access to a 24-hour Pet Telehealth Helpline, which provides AAA members with professional help and advice anytime they require it. These factors are expected to stimulate the United States pet insurance industry growth.

Growing Veterinary Care Costs

The rise in veterinary care costs is significantly driving the pet insurance market in the United States. As veterinary treatments become more advanced and sophisticated, the costs associated with caring for pets, especially in cases of emergencies, surgeries, and chronic conditions, have increased substantially over the years. For instance, according to the U.S. News & World Report, emergency vet dog surgery costs from US$ 1800 to US$ 5000. In line with this, according to the American Pet Products Association's annual report, average expenses in surgical veterinary visits in 2023 costed nearly US$ 458 for dogs and US$ 201 for cats. Moreover, pet insurance offers a solution to pet owners facing these escalating costs by providing coverage for veterinary expenses. This coverage can include everything from routine check-ups and vaccinations to unexpected illnesses and accidents. As the cost of veterinary care rises, more pet owners are recognizing the value of having insurance to mitigate these expenses. For instance, in May 2024, Unum Group, a financial protection benefits provider in the United States, developed Unum Pet Insurance. Unum Pet Insurance policies provide coverage that employees can rely on to keep their dogs healthy. With this product, Unum Group has expanded its financial benefits portfolio by providing comprehensive coverage for employees and their families, regardless of their family structure. These factors are further driving the adoption of pet insurance in the United States.

United States Pet Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for ​2024-2032​. Our report has categorized the market based on policy, animal, and provider.

Breakup by Policy:

• Illnesses and Accidents
• Chronic Conditions
• Others
   

The report has provided a detailed breakup and analysis of the market based on the policy. This includes illnesses and accidents, chronic conditions, and others.

Most pet insurance policies cover illnesses, which can range from common ailments like ear infections or skin allergies to more serious conditions such as cancer, diabetes, or kidney disease. Also, most pet insurance policies cover illnesses, which can range from common ailments like ear infections or skin allergies to more serious conditions such as cancer, diabetes, or kidney disease. Moreover, accident coverage is a fundamental component of pet insurance policies, providing financial protection for unexpected injuries or accidents. Apart from this, many pet insurance plans offer coverage for chronic conditions, which are long-term health issues requiring ongoing management and treatment. Chronic conditions commonly covered by pet insurance include diabetes, arthritis, allergies, heart disease, kidney disease, and certain neurological disorders.

Breakup by Animal:

• Dog
• Cat
• Others
   

A detailed breakup and analysis of the market based on the animal have also been provided in the report. This includes dog, cat, and others.

Different dog breeds are predisposed to specific health issues, such as hip dysplasia in larger breeds like German Shepherds and Labrador Retrievers, or respiratory problems in brachycephalic breeds like Bulldogs and Pugs. Pet owners of these breeds often seek insurance coverage to help manage potential health risks. While outdoor cats face additional risks such as injuries from fights, vehicular accidents, and exposure to toxins. Insurance coverage for cats can provide financial protection for accidents, injuries, and illnesses regardless of whether the cat is indoor-only or allowed outdoors. Also, cats are susceptible to certain health conditions such as dental disease, urinary tract issues, and feline lower urinary tract disease (FLUTD). Routine veterinary care and preventive measures, including dental cleanings and urinary tract health maintenance, are essential for cats' overall well-being. Pet insurance helps cover the costs of preventive care and treatment for common feline health issues.

Breakup by Provider:

• Public
• Private
   

The United States pet insurance market report has provided a detailed breakup and analysis of the market based on the provider. This includes public and private.

Private insurance companies specialize in offering pet insurance policies directly to consumers. They develop and market a range of insurance products tailored to meet the diverse needs of pet owners. Private providers dominate the pet insurance market and offer various coverage options, customizable plans, and pricing structures to attract customers. Moreover, public providers include government-sponsored programs or initiatives that may offer pet insurance coverage as part of broader social welfare or healthcare programs. While pet insurance is primarily provided by private insurers in the United States, there is growing interest in exploring public options to address pet healthcare needs.

Breakup by Region:

• Northeast 
• Midwest 
• South 
• West 
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northeast, Midwest, South, and West. 

According to the United States pet insurance market statistics, the Northeast has a strong culture of pet ownership, with many residents considering their pets as integral members of their families. This cultural attitude towards pets may drive demand for pet insurance as owners prioritize their pets' health and well-being. While economic conditions in the Midwest can influence pet owners' ability to afford veterinary care and insurance coverage. While some urban areas in the Midwest have higher median incomes and greater affordability, rural communities may face economic challenges that impact demand for pet insurance. Moreover, the affordability of pet insurance may vary across the South, with some areas experiencing economic prosperity and others facing socioeconomic challenges. Pet owners in affluent urban centers may be more willing to invest in comprehensive insurance coverage, while those in rural or economically disadvantaged areas may prioritize basic veterinary care. Furthermore, the West is home to a tech-savvy population that values convenience and digital innovation. Pet insurance companies offering user-friendly online platforms, mobile apps, and telemedicine services may attract tech-savvy pet owners in the Western region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

United States Pet Insurance Market Recent Developments:

• May 2024: Unum Group, a financial protection benefits provider in the United States, developed Unum Pet Insurance. Unum Pet Insurance policies provide coverage that employees can rely on to keep their dogs healthy.
• April 2024: Chubb acquired Healthy Paws, an MGA specializing in pet insurance based in the United States. Chubb has been the exclusive underwriter for the Healthy Paws pet insurance program since 2013.
• March 2024: Independence Pet Holdings and Synchrony acquired Pets Best Insurance Services in order to strengthen IPH's ability to serve customers in the United States and diversify the business’s innovative pet insurance offerings.

United States Pet Insurance Market Report Scope:

Key Questions Answered in This Report:

• How has the United States pet insurance market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United States pet insurance market?
• What is the breakup of the United States pet insurance market on the basis of policy?
• What is the breakup of the United States pet insurance market on the basis of animal?
• What is the breakup of the United States pet insurance market on the basis of provider?
• What are the various stages in the value chain of the United States pet insurance market? 
• What are the key driving factors and challenges in the United States pet insurance?
• What is the structure of the United States pet insurance market and who are the key players?
• What is the degree of competition in the United States pet insurance market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States pet insurance market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States pet insurance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States pet insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.