Rapid Growth and Key Aspects of the Pet Insurance Industry
The pet insurance industry is rapidly expanding, reaching $1.4 billion this year. With increasing societal value placed on pets and rising treatment costs, more owners are investing in coverage. Leading providers like Pets Best, Trupanion, Healthy Paws, and Figo offer diverse, comprehensive plans that cater to all pet ages and needs, ensuring peace of mind for pet owners and promoting animal welfare. Social media's role in strengthening the human-pet bond also drives industry growth and innovation.
This year, the pet insurance sector in the country has reached an impressive value of $1.4 billion. Over the past five years, the industry has experienced consistent growth, averaging 13.5% annually, and expanding its market presence faster than many other sectors.
Forecasts predict even brighter prospects, reflecting how humans increasingly see pets as family members. Pets now occupy an essential place in society, with their care and nurturing approaching that of human loved ones.
The influence of social media has also significantly transformed the bonding between humans and pets.
Sharing pet photos and videos offers comfort and joy not only to owners but also to viewers who feel innate happiness. The term “pet parents” is common in such content, highlighting the genuine bond. Interestingly, the pet insurance industry has its roots long before gaining popularity in the US, with the first policy for a dog issued in Sweden in 1924.
According to Agria, Sweden's oldest and largest insurer, around 90% of dogs are insured there, along with 60% of horses and half of all cats. It took nearly six decades for the US to catch up; California’s Veterinary Pet Insurance launched in 1981. In 1982, the famed dog Lassie became the first pet to be insured in America, sparking a surge in pet coverage. By 2005, nearly half a million pets in the US had policies, with industry standards established by NAPHIA in 2007.
Pet insurance resembles traditional plans where owners pay monthly premiums that grow with age, covering significant medical expenses. For example, cancer treatments can cost upward of $5,000, while surgeries may reach $6,000. Early investment in insurance is recommended, generally excluding issues like behavioral problems, grooming, hereditary conditions, dental issues, or routine care. Premiums are influenced by factors such as breed, age, and location, with reimbursements covering part of the costs.
The industry has attracted numerous providers. Notable companies include:
Pets Best—Founded in 1981 by Dr. Jack Stephens, Pets Best offers plans without age limits, covering emergencies, chronic conditions, and preventive care, starting at $9 monthly.
Trupanion—Known for covering hereditary and congenital conditions, Trupanion provides a single comprehensive plan with 90% reimbursement and direct vet payments, with no lifetime cap.
Healthy Paws—Highly rated for value, it covers accidents, illnesses, cancer, and alternative therapies, with claims handled via a mobile app and no payout caps.
Figo—Offering customizable, affordable plans with 100% reimbursement, Figo’s cloud-based platform allows easy management of policies and documents across three levels: Essential, Preferred, and Ultimate.
