U.S. Pet Insurance Market Trend, Marketing Channels and Investment Feasibility

U.S. Pet Insurance Market Summary

The U.S. pet insurance market was valued at USD 4.99 billion in 2024 and is projected to grow at a robust CAGR of 20.98% from 2025 to 2030, reaching an estimated market size of USD 15.71 billion. The expansion of this market is being fueled by multiple factors, including the rising disbursement of insurance claims, a growing number of underwritten policies, rising veterinary care costs, active initiatives taken by leading companies, and the evolution of supportive regulatory structures. Collectively, these elements are strengthening the adoption of pet insurance across the U.S., making it one of the fastest-growing segments in the broader pet industry.

One of the most influential growth drivers is the steady rise in the annual gross written premium (GWP) of pet insurance, reflecting the increasing acceptance of insurance plans by pet owners. According to the North American Pet Health Insurance Association’s (NAPHIA) State of the Industry (SOI) 2024 report, GWP expanded significantly by more than 35% between 2019 and 2023. In 2019, the GWP stood at approximately USD 1.5 billion, and by 2023 it had surpassed USD 3.9 billion. This rapid increase underscores the mounting demand for affordable and comprehensive insurance plans capable of covering expensive veterinary treatments, diagnostics, and emergency care.

Key Market Trends & Insights

• By coverage type, the accident and illness segment dominated the market in 2024 with an 86.32% revenue share. This segment is also anticipated to grow at the highest CAGR of more than 21% throughout the forecast period. The high costs associated with veterinary treatments, combined with the growing population of companion animals and increased awareness of the advantages of insurance coverage, are key factors contributing to this segment’s dominance. Pet owners are increasingly seeking coverage for both unexpected accidents and long-term illnesses, further enhancing growth in this area.
• By animal type, dogs represented the largest share of insured pets, accounting for 81.36% of the U.S. market in 2024. This dominance is largely attributed to the high adoption of dogs as household pets nationwide and the tendency of dog owners to opt for insurance to safeguard against rising veterinary expenses. The COVID-19 pandemic further accelerated this trend, as pet ownership, particularly dog adoption, surged during the period when households sought companionship.
• By sales channel, direct sales led the market with a share of 34.82% in 2024. This channel is particularly appealing to consumers because it is straightforward, transparent, and convenient. The simplicity of the process, where customers can directly purchase insurance from providers without intermediaries, has helped boost the popularity of direct sales across the country.
• Geographically, California held the largest share of the U.S. pet insurance market in 2024 and is expected to retain its leading position during the forecast period. The state’s dominance is supported by its large pet population as well as a dynamic and supportive regulatory environment, which encourages broader adoption of insurance products. Meanwhile, Florida is projected to record the fastest growth rate among all U.S. states. This surge can be attributed to the rapid increase in GWP and the number of insured pets. According to NAPHIA, Florida experienced a rise of over USD 100 million in total GWP in just two years, alongside an increase of more than 100,000 insured pets between 2021 and 2023, highlighting the state’s emerging importance in the national market.

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Market Size & Forecast

• 2024 Market Size: USD 4.99 billion
• 2030 Projected Market Size: USD 15.71 billion
• CAGR (2025 - 2030): 20.98%

Key Companies & Market Share Insights

Companies in the U.S. pet insurance market are focusing on different aspects of pet illness and accident coverage. The market is projected to mature with increased competition and claims processing volume. In addition to established companies, new startups and insurtechs are entering the market to offer innovative pet insurance schemes. The pandemic also increased the demand for pet insurance due to heightened risk protection awareness among pet parents.

Key Players

• Trupanion, Inc.
• Jab Holding Company
• Nationwide Mutual Insurance Company
• Allianz
• Fetch Pet Insurance
• Spot Pet Insurance
• MetLife, Inc.
• Odie Pet Insurance
• Crum & Foster
• ManyPets (EQT Group)
• Lemonade Inc.

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Conclusion

The U.S. pet insurance market is on a steep growth trajectory, driven by rising veterinary costs, increasing awareness among pet owners, and supportive regulatory structures. With dogs leading the insured pet population and accident and illness policies dominating coverage preferences, the sector is well-positioned for long-term expansion. States like California continue to anchor the market, while Florida’s rapid surge underscores regional opportunities. The convenience of direct sales and the surge in gross written premiums further emphasize consumer confidence in insurance solutions. As more households prioritize pets as family members, the demand for comprehensive coverage is expected to remain strong, ensuring sustained growth.