The U.S. family pet insurance coverage market grew by double digits in 2022 as insurance policy holders invested an all-time high of $3.22 billion and the variety of covered family pets increased to 4.85 million, likewise a record.
In the United States and Canada, the market created more than $3.5 billion in combined profits, a 23.5% dive from the year prior to. The variety of guaranteed Canadian family pets exceeded 500,000 for the very first time.
“With more than 5 million pets now insured across North America, it’s clear that more and more pet owners are viewing pet health insurance as an ideal way to ensure their pets are well cared for,” said Kristen Lynch, executive director of North American Pet Health Insurance Association.
The trade group’s State of the Industry Report discovered that U.S. spending on family pet insurance coverage escalated by 24.2% in 2022. Of the 4.85 million guaranteed U.S. family pets, 80% were dogs.
“2022 marked a return to pre-COVID levels of growth for our industry,” said Rick Faucher, NAPHIA’s president and the CEO and creator of Toto Pet Insurance. “This stable development is substantial throughout a duration when numerous North Americans were likewise required to make tough choices on their household spending.
“It’s the product’s strong value proposition that is driving the significant advances the North American pet insurance industry has experienced over the past five years.”
According to the report, the 5 biggest U.S. insurance providers and their 2022 sales were:
- Nationwide, $860.6 million
- Trupanion, $478.2 million
- Healthy Paws, $379.4 million
- Pets Best, $365.0 million
- Embrace, $244 million
Trupanion was the most popular insurance company in Canada, with $178 million in sales.
Annual premiums increased by single digits in the United States. For example, the typical cat owner paid $387 in 2022 for mishap and disease protection, up 4.7% in one year, while the typical dog owner paid $640, a boost of 2.4%.
U.S. family pet insurance providers paid more than $1.9 billion in claims in 2022.
“We know from various research studies that owners of insured pets are more likely to bring their pets in for regular shots, checkups and emergency treatment, as well as to follow the recommendations of their veterinarian,” Lynch said.
