North American Pet Health Insurance Industry Continued Exceptional Growth Rate In 2023
Industry experienced a ~22% year-over-year revenue increase while surpassing the $4 billion mark for the first time
Raleigh, NC (Apr. 11, 2024) – The North American Pet Health Insurance Association has released its 2024 State of the Industry (SOI) Report showing the North American pet health insurance sector grew another 21.9% in 2023.
This year’s SOI Report indicated, for the first time, the North American pet insurance industry had exceeded the $4 billion mark, with a record-setting $4.27 billion USD in total premiums sold in 2023 (a 21.9% increase from $3.5 billion USD in 2022) and over 6.25 million pets insured across North America (a 20.9% increase from the 5.17 million pets insured in 2022).
With an estimated total of over 170.4 million pets in North America, and an average penetration rate of 3.69% in the US and 3.52% in Canada, Rick Faucher, NAPHIA President and Chief Partnerships Officer with Fetch Pet Insurance, expressed his optimism for the industry’s continued long-term growth.
“Last year, for the fifth year in a row, the North American market grew by over 20 percent,” said Faucher. “When we look at our sustained growth across North America, we see a tremendous upside for the industry and are very encouraged about the future.”
NAPHIA Executive Director Kristen Lynch noted that the 25.7% average growth rate in the North American market over the past five years demonstrated pet owners understand the value of pet insurance and its impact on mitigating unexpected veterinary costs.
“At a time when households are experiencing growing financial pressures, pet insurance provides owners with financial protection to cover the rising costs of veterinary care,” said Lynch. “Our industry’s strong growth is evidence that North American pet families recognize the value of pet health insurance coverage and appreciate the certainty it offers in those instances when their pet has an unexpected illness or injury.”
The SOI Report is published annually to provide NAPHIA members, industry regulators, media, and other interested parties with key benchmarks on the updated status of the North American pet insurance industry.
* As reported by NAPHIA members
Some SOI Report Highlights:
NAPHIA’s State of the Industry (SOI) Report has been published using data compiled, aggregated and validated by the global multinational risk management and advisory firm Willis Towers Watson. NAPHIA members and SOI participants represent 99% of all pet health insurance coverage in effect in North America.
View the highlights or download the full report.
United States
- $3.91 billion USD – total premium volume (21.6% YoY)
- 5,676,776 million – total number of pets insured (17.1% increase YoY)
- $2.48 billion USD – total amount of claims paid in 2023 (29.8% increase YoY)
- More than a third of U.S. insured pets reside in California (18.3%), New York (7.5%) and Florida (6.2%)
- 78.6% of insured pets were dogs versus 21.4% cats
- Average accident and illness premium for dogs was $675.61/year or $56.30/month USD
- Average accident and illness premium for cats was $383.30/year or $31.94/month USD
- The US represents ~90% of the total number of insured pets in North America
Canada
- $485.5 million CAD – total premium volume (29.8% increase YoY)
- 577,785 – total number of pets insured (13.6% increase YoY)
- $258.2 million CAD – total amount of claims paid in 2023 (22.8% increase YoY)
- Majority of insured pets reside in Ontario (37.9%), British Columbia (18.7%) and Alberta (16.4%)
- 75.5% of insured pets were dogs versus 24.5% cats
- Average accident and illness premium for dogs was $940.91/year or $78.41/month CAD
- Average accident and illness premium for cats was $488.73/year or $40.73/month CAD
- Canada represents ~10% of the total number of insured pets in North America
About NAPHIA
The North American Pet Health Insurance Association (NAPHIA) is comprised of reputable pet health insurance organizations from across Canada and the United States. As the industry’s trade association, NAPHIA works to advance and grow the pet insurance industry and marketplace through proactive research, data sharing, benchmarking initiatives, advocacy efforts, strategic partnerships, resource sharing and the dissemination of information to collaboratively address challenges and opportunities. For more information, please visit naphia.org.
SOURCE: North American Pet Health Insurance Association (NAPHIA)
Tags: growth, pet insurance