Global Pet Insurance Market Projected to reach 15.0 Billion by 2033, Expanding at a CAGR of 9.8% | M2Square Consultancy
Global Pet Insurance Market Projected to reach 15.0 Billion by 2033, Expanding at a CAGR of 9.8% | M2Square Consultancy
Published on November 05, 2025 | Category: Healthcare
The global pet insurance market is witnessing robust growth, fuelled by increasing awareness of animal health and the rising cost of veterinary treatments. According to M2Square Consultancy's latest research report, the market is projected to expand at a CAGR of 9.8% from 2025 to 2033, reaching an estimated value of USD 15.0 billion by 2033.
The Pet Insurance Market has evolved from being a niche service to a mainstream financial product, offering coverage for veterinary treatment, surgeries, and illnesses. With pet owners treating pets as family members, demand for comprehensive and customizable insurance policies is increasing significantly.
The bond between owners and their pets is deeper than ever, transforming pets into genuine family members. This emotional investment, coupled with veterinary inflation, has created a non-negotiable demand for financial security. The accelerating digital adoption in the insurance sector and the rise of AI-enabled claims processing are further redefining the value proposition of pet insurance for a younger, digitally native consumer base.
The global pet insurance market is witnessing strong momentum, backed by rising pet ownership, increasing veterinary treatment costs, and the shift to digital-first insurance models. The demand for comprehensive pet health coverage continues to surge as pet owners seek protection against unforeseen medical expenses. Veterinary costs have increased by nearly 15–20% in the past five years, driving greater adoption of accident and illness coverage plans. Insurers are also introducing flexible and customizable plans to meet diverse customer needs.
The Global Pet Insurance Market is anticipated to witness robust growth with increasing integration of telemedicine, wearable pet health trackers, and personalized health analytics. Insurers focusing on digital transformation and flexible policy structures will be well-positioned to capture the next wave of growth.
North America Pet Insurance Market Insights
North America is experiencing explosive growth, according to the North American Pet Health Insurance Association (NAPHIA), with the U.S. market surpassing $4.7 billion in Gross Written Premiums (GWP) in 2024 and around 6.5 million pets insured.
Total Insured Pets (U.S.)
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
3,101,958 |
3,970,535 |
4,849,540 |
5,681,774 |
6,405,541 |
The highest concentration of advanced and expensive veterinary treatments, including specialized surgeries and diagnostics, drives the perceived value of comprehensive coverage. The penetration rate in the U.S. remains low at approximately 3.9% of the total pet population, indicating vast untapped potential.
Key Market Highlights from the Report
- Market Valuation: The market was valued at an estimated USD 7.2 billion in 2025.
- Animal Type: The Dog segment accounts for the largest market share, around 70% in 2024, primarily due to higher ownership rates and more complex, expensive treatments often associated with larger breeds. The cat segment is demonstrating rapid growth, fuelled by rising urban cat ownership.
- Policy Coverage: The Accident & Illness segment holds an overwhelming majority share, accounting for over 84% of the market revenue due to the need for comprehensive coverage for chronic and acute conditions.
- Leading Region: North America currently holds the largest share of the global pet insurance market, but Asia-Pacific is poised to be the fastest-growing region globally, propelled by rising pet adoption rates in countries like China and India.
Pet Insurance Market Segmentation
M2Square Consultancy has segmented the global pet insurance market based on animal type, policy coverage, sales channel, and region:
By Animal Type
- Dogs
- Cats
- Others
By Policy Coverage
- Accident Only
- Accident and Illness
- Others
By Sales Channel
- Agency
- Broker
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Italy
- Spain
- Switzerland
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of APAC
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
Key Market Players in the Pet Insurance Market
- Nationwide Building Society
- Trupanion
- Pethealth Inc.
- Embrace Pet Insurance Agency LLC
- United States Fire Insurance Company
- Petplan Ltd.
- Hartville Group, Inc.
- Petfirst Healthcare LLC
- Anicom Holdings Inc.
- RSA
- ipet Insurance
- The Oriental Insurance Company Ltd.
- Figo Pet Insurance, LLC
- Direct Line
- Animal Friends Insurance Services Limited
- Others
Key Strategies by Pet Insurance Market Players
Digitalization & Automation: Many insurers are investing in digital platforms such as mobile apps/web portals for policy quoting, purchase, renewal and claims. Use of AI, predictive analytics and big data to streamline underwriting, risk assessment, personalize pricing and speed up claims. Automation in claims enables instant quotes, automatic form-filling, chatbots, and real-time claim updates.
Product innovation & customisation: Expanding beyond traditional accident/illness cover to include wellness/preventive care such as dental, vaccinations, routine check-ups, etc. and provide flexible pricing, modular add-ons, lifetime cover, alternative therapies, etc.
Implications for Stakeholders
- Insurance providers: Should invest in data, digital platforms and strategic partnerships to capture growth.
- Veterinarians & Pet-care services: Can collaborate with insurers for integrated care/wellness programs.
- Investors & market entrants: The strong CAGR signals attractive long-term growth potential.
- Policy-makers & regulators: Need to balance innovation with consumer protection, such as transparency in policy terms, premium-rate justification, etc.
About M2Square Consultancy
We specialize in decoding complexity. From market forecasting to customer behavior analysis, our services are designed to bridge the gap between uncertainty and opportunity. Our offerings span the entire insight lifecycle, including Consulting, Tailored Research, Syndicated Studies, Trend Tracking, Competitive Intelligence, Pricing and Channel analysis, GTM Strategy and more. Using a blend of qualitative expertise and data science, we deliver bespoke solutions that inform bold business moves. Whether you’re entering a new geography, launching a product, or restructuring a business model, we help you understand the landscape before you leap. What makes us different is our obsession with relevance. We don’t deliver static reports; we craft stories backed by evidence, customized for your strategic needs. Our advanced data visualization capabilities bring research to life, turning complexity into clarity. In less than two years, we’ve worked with over 150 organizations across sectors like healthcare, ICT, finance, energy, and consumer goods, proving our commitment to impact, not just insight. We don’t just inform; we empower.
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