North American Pet Health Insurance Industry Continued Exceptional Growth Rate In 2023 – Insurance News

Industry skilled a ~22% year-over-year income enhance whereas surpassing the $4 billion mark for the primary time

PHOENIX, April 10, 2024 /PRNewswire/ – The North American Pet Health Insurance Association (NAPHIA) immediately launched its 2024 State of the Industry (SOI) Report exhibiting the North American pet medical health insurance sector grew one other 21.9% in 2023.

This 12 months’s SOI Report indicated, for the primary time, the North American pet insurance coverage {industry} had exceeded the $4 billion mark, with a record-setting $4.27 billion USD in complete premiums bought in 2023 (a 21.9% enhance from $3.5 billion USD in 2022) and over 6.25 million pets insured throughout North America (a 20.9% enhance from the 5.17 million pets insured in 2022).

In the United States (US), complete premium quantity* totalled $3.91 billion USD, a 21.6% annual enhance over 2022. With an estimated 154 million pets within the US, and a median penetration price of three.69% (5.07% for dogs and 1.84% for cats), Rick Faucher, NAPHIA President and Chief Partnerships Officer with Fetch Pet Insurance, expressed his optimism for the {industry}’s continued long-term development.

“For the fifth 12 months in a row, the US market grew by over 20 %,” mentioned Faucher. “With rising penetrations price for dogs and cats within the US and the potential for future, sustained development, we see an amazing upside for the {industry} and are very inspired concerning the future.”

NAPHIA Executive Director Kristen Lynch famous the 25.9% common development price within the U.S. market over previous 5 years demonstrates that US pet house owners perceive the worth of pet insurance coverage and expertise its impression in mitigating surprising veterinary prices.

“At a time when households are experiencing rising monetary pressures, pet insurance coverage offers house owners with monetary safety to cowl the rising prices of veterinary care,” mentioned Lynch. “Our {industry}’s sturdy development is proof that American pet households acknowledge the worth of pet medical health insurance protection and recognize the understanding it provides in these situations when their pet has an surprising sickness or damage.”

The SOI Report is revealed yearly to offer NAPHIA members, {industry} regulators, media, and different events with key benchmarks on the up to date standing of the North American pet insurance coverage {industry}.

* As reported by NAPHIA members

Some Industry Highlights:

NAPHIA’s State of the Industry (SOI) Report has been revealed utilizing knowledge compiled, aggregated and validated by the worldwide multinational threat administration and advisory agency Willis Towers Watson. NAPHIA members and SOI contributors characterize 99% of all pet medical health insurance protection in impact in North America.

To view the outcomes and obtain the total report, please go to: https://naphia.org/industry-data/

United States

• $3.91 billion USD – complete premium quantity (21.6% YoY)
• 5,676,776 million – complete variety of pets insured (17.1% enhance YoY)
• $2.48 billion USD – complete quantity of claims paid in 2023 (29.8% enhance YoY)
• More than a 3rd of U.S. insured pets reside in California (18.3%), New York (7.5%) and Florida (6.2%)
• 78.6% of insured U.S. pets have been dogs versus 21.4% cats
• Average accident and sickness premium for dogs was $675.61/12 months or $56.30/month USD
• Average accident and sickness premium for cats was $383.30/12 months or $31.94/month USD
• The US represents ~90% of the whole variety of insured pets in North America.

Canada

• $485.5 million CAD – complete premium quantity (29.8% enhance YoY)
• 577,785 – complete variety of pets insured (13.6% enhance YoY)
• $258.2 million CAD – complete quantity of claims paid in 2023 (22.8% enhance YoY)
• Majority of insured pets reside in Ontario (37.9%), British Columbia (18.7%) and Alberta (16.4%)
• 75.5% of insured Canadian pets have been dogs versus 24.5% cats
• Average accident and sickness premium for dogs was $940.91/12 months or $78.41/month CAD
• Average accident and sickness premium for cats was $488.73/12 months or $40.73/month CAD
• Canada represents ~10% of the whole variety of insured pets in North America.

About NAPHIA

The North American Pet Health Insurance Association (NAPHIA) is comprised of respected pet medical health insurance organizations from throughout the United States and Canada. As the {industry}’s commerce affiliation, NAPHIA works to advance and develop the pet insurance coverage {industry} and market via proactive analysis, knowledge sharing, benchmarking initiatives, advocacy efforts, strategic partnerships, useful resource sharing and the dissemination of knowledge to collaboratively tackle challenges and alternatives.

View unique content material to obtain multimedia:https://www.prnewswire.com/news-releases/north-american-pet-health-insurance-industry-continued-exceptional-growth-rate-in-2023-302112235.html

SOURCE NAPHIA – The North American Pet Health Insurance Association