Global Pet Insurance Market Size, Share, Growth and Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Content

Global Pet Insurance Market Size, Share & Growth and Trend Analysis Report, By Coverage Type (Accident-only, Accident & Illness and Others), By Animal Type (Dogs, Cats and Others), By Sales Channel (Agency, Broker, Direct, Bancassurance and Others) and Regional Forecasts (Asia Pacific, Europe, North America, Latin America and Middle East & Africa), 2024 – 2032

The pet insurance market refers to the industry that provides coverage for veterinary costs, including accidents, illnesses, and wellness care for pets, primarily dogs and cats. This type of insurance helps pet owners manage the financial burden of unexpected medical expenses for their animals.

Policies typically cover treatments, surgeries, and medications, with varying levels of coverage based on the plan. As pet ownership increases and veterinary care becomes more advanced, demand for pet insurance is growing. The market is driven by factors such as rising pet healthcare costs, increased awareness, and the humanization of pets.

The Global Pet Insurance Market is projected to reach USD XX billion by 2032, growing at an estimated compound annual growth rate (CAGR) of around 16% from 2024 to 2032. This growth is fueled by the expanding pet population, higher disposable incomes, and the growing trend of treating pets as family members, leading to increased spending on pet care.

Industry Trends

The pet insurance market is undergoing rapid innovation, fueled by advancements in veterinary care and a wide array of coverage options designed for various animal species. The growing trend of viewing pets as family members, coupled with higher rates of pet adoption, has driven increased demand for insurance. As veterinary treatments become more advanced and costly, pet owners are turning to insurance solutions to manage rising healthcare expenses.

The market is driven by rising awareness about pet healthcare, increasing veterinary costs, and the availability of customizable insurance plans. Cat insurance industry is gaining traction globally as more pet owners recognize the importance of safeguarding their feline companions against unexpected medical expenses. With advancements in veterinary care, treatments for cats have become more sophisticated yet expensive, making insurance a vital investment for cat owners.

However, despite the growing demand for pet insurance, many pet owners remain unaware of its advantages or are uncertain about how it operates. This lack of awareness is anticipated to hinder the growth of the pet insurance market. Additionally, the high cost of premiums may pose a challenge, especially for pet owners with multiple animals or those with limited financial resources.

Industry Expert’s Opinion

Ramit Goyal, Future Generali India Insurance Chief Distribution Officer

"While pet insurance products have been in existence in India for some years now, it has witnessed a significant progression over the last few years post Covid with the rising pet ownership and affection for pets translating into a higher demand for pet insurance."

TA Ramalingam, CTO, Bajaj Allianz General Insurance.

"Rising pet ownership, industry growth, proactive insurance companies, and pets being seen as family members are driving the increased awareness and uptake of pet insurance. As more homes welcome pets, the demand for financial protection against unexpected pet medical expenses is set to grow."

TT Consultants’ Perspective

The global pet insurance market is poised for sustained growth, with evolving consumer needs and innovations in insurance offerings driving market dynamics. As veterinary care becomes increasingly sophisticated and expensive, the importance of pet insurance cannot be overstated.

The cat insurance industry holds immense potential due to the increasing willingness of pet owners to invest in their feline friends’ healthcare. Insurers that prioritize flexible, cat-specific coverage and competitive pricing will likely dominate this expanding market.

Companies that prioritize transparency, digital adoption, and tailored plans are well-positioned to thrive in this competitive market. The veterinary insurance market in Asia Pacific presents immense growth opportunities due to its expanding pet owner base and rising disposable incomes.

In conclusion, the pet insurance market's future is promising, marked by rising consumer awareness, technological advancements, and a growing focus on pet health and well-being.

Market Segmentation

1. By Coverage Type (Accident-only, Accident & Illness and Others)

Accident & Illness Coverage leads the pet insurance market with a CAGR of XX%, reflecting its popularity among pet owners who seek comprehensive plans to cover unexpected veterinary costs.

This segment accounts for the majority of the market share due to its wide range of benefits. Accident-only Coverage is also witnessing steady growth at a CAGR of XX%, appealing to cost-conscious consumers who wish to protect their pets against unforeseen accidents. The “Others” segment, which includes wellness and preventive care plans, is expected to grow at a CAGR of XX%, driven by increasing awareness of routine pet health management.

2. By Animal Type (Dogs, Cats and Others)

Dogs dominate the pet insurance market size, contributing the largest share in pet insurance market of USD XX Bn for 2024 and growing at a CAGR of XX%. Dogs dominate the market, driven by their higher veterinary care needs and frequent claims. Cat insurance industry follow as the second-largest segment, with rising adoption rates and increased demand for preventive healthcare coverage.

The "Others" segment, which includes birds, rabbits, and exotic pets, represents a niche but emerging market driven by growing awareness and the expansion of specialized insurance products. This segmentation highlights the diverse consumer preferences and tailored insurance offerings based on animal-specific healthcare requirements.

3. By Sales Channel (Agency, Broker, Direct, Bancassurance and Others)

Direct Sales Channels remain the most preferred channel in the pet insurance market, growing at a CAGR of XX%, as they provide convenience and direct communication with insurance providers. Brokers are gaining popularity, with a CAGR of XX%, as they offer personalized advice to pet owners in selecting suitable plans.

4. By Region (North America, Europe, Asia Pacific, Latin America, Middle East Africa)

Europe leads the global pet insurance market size, with the highest market share of USD XX Bn in 2024 and a CAGR of XX%, driven by a well-established pet culture and mandatory pet insurance regulations in certain countries. North America follows closely, with a CAGR of XX%, supported by high pet ownership rates and increasing awareness of the benefits of pet insurance. The Asia Pacific region is anticipated to grow at the fastest rate, with a CAGR of XX%, driven by rapid urbanization, rising disposable incomes, and a growing interest in pet health.

Competitive Scenario

The competitive scenario in the pet insurance market is characterized by a diverse landscape with both established players and new entrants vying for market share. Key companies are focusing on offering innovative, customizable insurance plans that cater to specific animal types, such as dogs, cats, and other pets, to attract a wide customer base.

With advancements in digital platforms and telemedicine, companies are enhancing customer engagement and streamlining claim processes. Strategic partnerships with veterinary clinics, pet care providers, and online pet communities are also driving growth.

Additionally, competition is intensifying with the rise of insurtech startups leveraging technology to provide affordable and accessible policies, contributing to increased market fragmentation.

Prominent companies in the global pet insurance market include Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group), among others.

Recent Developments and Strategic Activities:

In January 2025, Pawlicy Advisor announced that it has assisted 1 million pet owners in selecting pet insurance policies. The company also introduced new leadership appointments to support its growth and mission.
In August 2024, Apollo Insurance, a Canadian insurance broker, introduced a new pet insurance plan designed to cover medical expenses for pets, including dogs, cats, and other animals.
In June 2024, Trupanion partnered with Boehringer Ingelheim to enhance veterinary care access by offering Trupanion clients detailed veterinary insights and tips curated by Boehringer Ingelheim.
In April 2024, HDFC ERGO Insurance unveiled "Paws n Claws," a pet insurance plan for dogs that covers veterinary costs such as diagnostic tests, treatments, and medications. The plan is customizable to cater to specific needs.
In January 2024, Five Sigma, a cloud-based claims management solutions provider, formed a strategic partnership with Odie Pet Insurance. This collaboration aims to streamline pet insurance claims processes and improve operational efficiency across the industry.
In November 2023, Fetch announced a partnership with Best Friends Animal Society, a national organization focused on ending euthanasia in American shelters by 2025. As part of the partnership, Fetch committed to significant donations to support efforts to rehome shelter animals and move toward a no-kill nation.
In November 2023, Synchrony Financial sold its pet insurance subsidiary, Pets Best, to Independence Pet Holdings, aligning with its broader financial goals.