The North American Pet Health Insurance Association (NAPHIA) today released its 2025 State of the Industry (SOI) Report. The SOI showed that at YE 2024, for the first time, the North American pet insurance industry had exceeded the $5.2 billion USD in total Written Premium (a 20.8% increase from $4.2 billion USD in 2023).
The results also indicated that the North American pet health insurance sector more than doubled over the past three years.
Rick Faucher, NAPHIA President, and General Manager of Pet Insurance, for Physicians Mutual Insurance Company, said that in 2024, a record 7.03 million pets were insured across North America. “That’s a 20.9% increase from the 5.17 million pets insured across our sector in 2023”, Faucher said. According to the report, approximately 91% of those pets are in the U.S., while 9% of the market is based in Canada.
Kristen Lynch, NAPHIA Executive Director says the industry also celebrated increases in other key industry benchmarks, “Many in the business and animal health community use pet insurance penetration rates to gauge the success of the North American industry,” Lynch explained. “Our data shows that by year-end 2024 pet insurance penetration in North America had reached nearly 4% for dogs and cats combined, a significant milestone for our sector.”
Lynch also highlighted the U.S. and Canadian markets’ strengthening penetration rates: in the U.S. the SOI reported penetration rates for dogs at 5.46% and cats at 2.04%. Similarly in Canada, 2024 ended with the penetration rate for dogs at 5.57%, and cats at 1.76%.
Logan Bitter, who leads NAPHIA’s State of the Industry Report initiative, expressed optimism for the industry’s continued long-term growth. “Over the past five years, the industry has experienced a combined growth rate of 20.8% in Written Premium,” said Bitter, Director of Pet Insurance at Physicians Mutual Insurance Company. “There is simply no other line of insurance and few other pet health products experiencing that level of ongoing growth.” Bitter believes this expansion driven by a host of factors, such as the continued launch of new pet insurance brands, ongoing product innovation, and regulatory efforts to help make pet insurance law more uniform across the U.S.
Faucher agrees, and believes that NAPHIA’s data is the ideal indicator for the most significant factor influencing pet insurance growth, the evolving human animal bond. “If you consider today’s unique economic challenges directly alongside the love that Americans and Canadians hold for our pets, the value proposition of pet health insurance for pet families just continues to intensify year over year. NAPHIA’s 2025 SOI Report results so clearly reflect this,” Faucher said.
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.
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 SOI Report is estimated to represent 99% of all pet health insurance written premium in effect in North America.
To view the results and download the full report, please visit:
United States
- $4.74 billion USD – total premium volume (21.4% YoY)
- 6,405,541 – total number of pets insured (20.7% increase YoY)
- $3,065.7 billion USD – total amount of claims paid in 2024 (23.6% increase YoY)
- More than a third of U.S. insured pets reside in California (18.3%), New York (7.2%), Florida (6.3%), and Texas (5.5%)
- 75.6% of insured pets were dogs versus 23.5% cats
- Average accident and illness premium for dogs was $749.29/year or $62.44/month USD
- Average accident and illness premium for cats was $386.47/year or $32.21/month USD
- The US represents ~90% of the total number of insured pets in North America
Canada
- $583.9 million CAD – total premium volume (20.7% increase YoY)
- 619,303 – total number of pets insured (7.2% increase YoY)
- $330.0 million CAD – total amount of claims paid in 2024 (27.8% increase YoY)
- Majority of insured pets reside in Ontario (36.9%), British Columbia (23%) and Alberta (18.2%)
- 74.7% of insured pets were dogs versus 23.3% cats
- Average accident and illness premium for dogs was $1,070.20 /year or $89.18/month CAD
- Average accident and illness premium for cats was $550.35/year or $45.86/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 the United States and Canada. As the industry’s trade association, NAPHIA works to advance and grow the pet insurance industry and marketplace through proactive research, data sharing and benchmarking initiatives, advocacy efforts, strategic partnerships, resource sharing, and collaboratively addressing challenges and opportunities.