GITNUXREPORT 2025

Pet Insurance Industry Statistics

Global pet insurance market projected to reach $12.86 billion by 2027.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The most common claims are for April (dog) and for urinary tract infections in cats

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The average claim size for pet insurance in the US is approximately $600 per incident

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Veterinary costs for large surgeries can reach up to $10,000, making insurance a financial necessity for many pet owners

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Claims for orthopedic injuries increased by 22% between 2020 and 2022, indicating rising health issues among pets

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The average waiting period before coverage begins is about 14 days for accident-only policies and 30 days for illness coverage

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Pet insurance claims for cancer treatment increased by 35% over the last three years, reflecting better diagnostics and awareness

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About 70% of pet insurance policies include coverage for medications, vaccines, and preventive care

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Claims for emergency surgeries increased by 18% from 2021 to 2023, indicating rising pet health emergencies

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The most common procedure claims involve ACL (stifle) repair surgeries, accounting for about 30% of orthopedic claims

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The average annual premium for small pets (cats and small dogs) is approximately $350, lower than for larger breeds

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The top reasons for pet insurance claim denials include pre-existing conditions and lack of coverage for hereditary conditions

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Pet insurance claims related to weight management and obesity treatment have increased by 20% over the last two years, reflecting rising concern about pet obesity

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Pet insurance claims for dental diseases increased by 15% from 2020 to 2022, emphasizing the importance of dental health coverage

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68% of pet insurance claims are processed within 10 days, indicating efficient claim handling

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The percentage of insured pets with coverage that includes hereditary and congenital conditions is around 45%, reflecting their importance in policies

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On average, pet insurance claims increase by approximately 12% annually, driven by rising veterinary care costs

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The most common claim amounts range between $300 and $1,200, covering a wide array of medical procedures

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The industry has seen an increase of about 10% in the number of claims related to allergies and dermatological issues in pets over the past three years, indicating changing health issues

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Nearly 80% of pet owners consider their pet a family member, increasing demand for pet insurance

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Roughly 63% of pet owners with insurance reported that it helped them afford necessary veterinary care

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The most insured breeds in the US include Labrador Retriever, German Shepherd, and Golden Retriever

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60% of pet owners are willing to pay more for insurance if it covers hereditary conditions

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The top three reasons pet owners purchase insurance are to cover accidents, illnesses, and hereditary conditions

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The average age for pet owners purchasing insurance is 38 years old, with a higher propensity among millennials

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According to surveys, 45% of pet owners are willing to switch providers for better coverage, indicating a competitive market

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Around 65% of pet insurance policies are sold online directly to consumers, diminishing reliance on brokers

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The most common age for dogs to be insured is between 1 and 3 years old, while for cats, it is between 2 and 4 years old

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The average policyholder holds an insurance plan for about 4 years before switching providers or dropping coverage

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Pet insurance use is more prevalent among pet owners in households with children, at a rate of 4.5%, compared to 2.1% without children

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The percentage of pet owners who have insurance coverage that includes mental health treatments for pets is around 12%, indicating a niche but growing market segment

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The average tenure of pet insurance policies is around 3.5 years, with many policies renewed annually

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The portion of pet owners purchasing insurance early in their pet’s life (before age 2) is approximately 58%, aiming to avoid pre-existing condition exclusions

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The adoption of telemedicine services related to pet health has increased by 40% among insured pet owners from 2021 to 2023, showing technological integration trends

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About 22% of pet owners are familiar with different pet insurance providers but have not purchased a policy yet, indicating potential market growth

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The percentage of pet owners who believe pet insurance offers good value for money is approximately 62%, influencing purchasing decisions

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The average age of pets at first insurance purchase is 2.3 years, with some owners insuring puppies and kittens early

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The share of pet insurance policies that include accident-only coverage accounts for roughly 35%, a popular choice among budget-conscious pet owners

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77% of pet owners insured their pets for less than $1,000 in annual premiums, reflecting affordability concerns

Statistic 39

The pet insurance industry has seen a diversification of products, including wellness plans that cover routine care, accounting for about 25% of the market in 2023

Statistic 40

The pet insurance industry’s overall growth is partly driven by increasing veterinary medicine innovation, including advanced surgeries and treatments

Statistic 41

The average claim processing time has decreased by 10% over the past two years due to technological advancements, improving customer satisfaction

Statistic 42

The global pet insurance market is projected to reach $12.86 billion by 2027

Statistic 43

In the United States, approximately 3.1 million cats and 2.8 million dogs are insured

Statistic 44

The average annual premium for dog insurance in the US is about $585

Statistic 45

The average annual premium for cat insurance in the US is approximately $342

Statistic 46

Pet insurance claims for major medical coverage grew by over 50% from 2019 to 2022

Statistic 47

Pet insurance penetration in the US is estimated at around 2-3% of pet owners

Statistic 48

In 2023, the pet insurance market in Europe is valued at approximately $3.4 billion

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The industry has seen a compound annual growth rate (CAGR) of about 14% from 2018 to 2023

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The industry is expected to grow at a CAGR of 12.5% from 2023 to 2030, driven by rising pet ownership and veterinary costs

Statistic 51

In Asia-Pacific, the pet insurance market growth rate is about 13% annually, with Australia and Japan being the leading markets

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The largest pet insurance provider in the US holds about 25% of the market share, indicating a highly competitive landscape

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The pet insurance industry is projected to create over 50,000 new jobs globally by 2027, contributing to economic growth

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The number of insurance products targeting exotic pets such as reptiles, birds, and small mammals is rising, representing about 8% of the market

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Pet insurance adoption rate is higher among urban pet owners compared to rural, at 5.2% versus 1.7%

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The top three states in the US with the highest pet insurance adoption rates are California, Texas, and Florida

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The penetration rate of pet insurance in Australia is approximately 15%, higher than in the US, indicating different regional adoption levels

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Key Highlights

The global pet insurance market is projected to reach $12.86 billion by 2027
In the United States, approximately 3.1 million cats and 2.8 million dogs are insured
The average annual premium for dog insurance in the US is about $585
The average annual premium for cat insurance in the US is approximately $342
Nearly 80% of pet owners consider their pet a family member, increasing demand for pet insurance
Pet insurance claims for major medical coverage grew by over 50% from 2019 to 2022
The most common claims are for April (dog) and for urinary tract infections in cats
Roughly 63% of pet owners with insurance reported that it helped them afford necessary veterinary care
Pet insurance penetration in the US is estimated at around 2-3% of pet owners
In 2023, the pet insurance market in Europe is valued at approximately $3.4 billion
The average claim size for pet insurance in the US is approximately $600 per incident
The most insured breeds in the US include Labrador Retriever, German Shepherd, and Golden Retriever
Veterinary costs for large surgeries can reach up to $10,000, making insurance a financial necessity for many pet owners

The pet insurance industry is experiencing rapid growth and transformation, with projections to reach nearly $13 billion globally by 2027 amidst rising pet ownership, escalating veterinary costs, and a surge in owners prioritizing their pets as family members.

Claims and Coverage Details

The most common claims are for April (dog) and for urinary tract infections in cats
The average claim size for pet insurance in the US is approximately $600 per incident
Veterinary costs for large surgeries can reach up to $10,000, making insurance a financial necessity for many pet owners
Claims for orthopedic injuries increased by 22% between 2020 and 2022, indicating rising health issues among pets
The average waiting period before coverage begins is about 14 days for accident-only policies and 30 days for illness coverage
Pet insurance claims for cancer treatment increased by 35% over the last three years, reflecting better diagnostics and awareness
About 70% of pet insurance policies include coverage for medications, vaccines, and preventive care
Claims for emergency surgeries increased by 18% from 2021 to 2023, indicating rising pet health emergencies
The most common procedure claims involve ACL (stifle) repair surgeries, accounting for about 30% of orthopedic claims
The average annual premium for small pets (cats and small dogs) is approximately $350, lower than for larger breeds
The top reasons for pet insurance claim denials include pre-existing conditions and lack of coverage for hereditary conditions
Pet insurance claims related to weight management and obesity treatment have increased by 20% over the last two years, reflecting rising concern about pet obesity
Pet insurance claims for dental diseases increased by 15% from 2020 to 2022, emphasizing the importance of dental health coverage
68% of pet insurance claims are processed within 10 days, indicating efficient claim handling
The percentage of insured pets with coverage that includes hereditary and congenital conditions is around 45%, reflecting their importance in policies
On average, pet insurance claims increase by approximately 12% annually, driven by rising veterinary care costs
The most common claim amounts range between $300 and $1,200, covering a wide array of medical procedures
The industry has seen an increase of about 10% in the number of claims related to allergies and dermatological issues in pets over the past three years, indicating changing health issues

Claims and Coverage Details Interpretation

As rising veterinary costs, increased health issues like orthopedic injuries and cancer, and evolving coverage policies underscore, pet insurance is shifting from a luxury to a necessary financial shield for responsible owners navigating an increasingly costly and complex world of pet health care.

Consumer Behavior and Demographics

Nearly 80% of pet owners consider their pet a family member, increasing demand for pet insurance
Roughly 63% of pet owners with insurance reported that it helped them afford necessary veterinary care
The most insured breeds in the US include Labrador Retriever, German Shepherd, and Golden Retriever
60% of pet owners are willing to pay more for insurance if it covers hereditary conditions
The top three reasons pet owners purchase insurance are to cover accidents, illnesses, and hereditary conditions
The average age for pet owners purchasing insurance is 38 years old, with a higher propensity among millennials
According to surveys, 45% of pet owners are willing to switch providers for better coverage, indicating a competitive market
Around 65% of pet insurance policies are sold online directly to consumers, diminishing reliance on brokers
The most common age for dogs to be insured is between 1 and 3 years old, while for cats, it is between 2 and 4 years old
The average policyholder holds an insurance plan for about 4 years before switching providers or dropping coverage
Pet insurance use is more prevalent among pet owners in households with children, at a rate of 4.5%, compared to 2.1% without children
The percentage of pet owners who have insurance coverage that includes mental health treatments for pets is around 12%, indicating a niche but growing market segment
The average tenure of pet insurance policies is around 3.5 years, with many policies renewed annually
The portion of pet owners purchasing insurance early in their pet’s life (before age 2) is approximately 58%, aiming to avoid pre-existing condition exclusions
The adoption of telemedicine services related to pet health has increased by 40% among insured pet owners from 2021 to 2023, showing technological integration trends
About 22% of pet owners are familiar with different pet insurance providers but have not purchased a policy yet, indicating potential market growth
The percentage of pet owners who believe pet insurance offers good value for money is approximately 62%, influencing purchasing decisions
The average age of pets at first insurance purchase is 2.3 years, with some owners insuring puppies and kittens early
The share of pet insurance policies that include accident-only coverage accounts for roughly 35%, a popular choice among budget-conscious pet owners
77% of pet owners insured their pets for less than $1,000 in annual premiums, reflecting affordability concerns

Consumer Behavior and Demographics Interpretation

As pet owners increasingly view their furry friends as family, savvy consumers are leveraging a competitive, tech-savvy market—particularly among millennials—to secure comprehensive, affordable coverage that not only addresses accidents and illnesses but also taps into emerging trends like hereditary conditions and telemedicine, all while balancing the demands of a pet-toting generation convinced that good coverage is a purr-fect investment.

Industry Developments and Innovations

The pet insurance industry has seen a diversification of products, including wellness plans that cover routine care, accounting for about 25% of the market in 2023
The pet insurance industry’s overall growth is partly driven by increasing veterinary medicine innovation, including advanced surgeries and treatments
The average claim processing time has decreased by 10% over the past two years due to technological advancements, improving customer satisfaction

Industry Developments and Innovations Interpretation

As pet insurance tail-wags into a diverse array of offerings fueled by cutting-edge veterinary advances and faster claims, it’s clear that owners are increasingly investing in their furry friends’ well-being, turning routine care into a smarter, quicker, and more comprehensive safety net.

Market Size and Growth Trends

The global pet insurance market is projected to reach $12.86 billion by 2027
In the United States, approximately 3.1 million cats and 2.8 million dogs are insured
The average annual premium for dog insurance in the US is about $585
The average annual premium for cat insurance in the US is approximately $342
Pet insurance claims for major medical coverage grew by over 50% from 2019 to 2022
Pet insurance penetration in the US is estimated at around 2-3% of pet owners
In 2023, the pet insurance market in Europe is valued at approximately $3.4 billion
The industry has seen a compound annual growth rate (CAGR) of about 14% from 2018 to 2023
The industry is expected to grow at a CAGR of 12.5% from 2023 to 2030, driven by rising pet ownership and veterinary costs
In Asia-Pacific, the pet insurance market growth rate is about 13% annually, with Australia and Japan being the leading markets
The largest pet insurance provider in the US holds about 25% of the market share, indicating a highly competitive landscape
The pet insurance industry is projected to create over 50,000 new jobs globally by 2027, contributing to economic growth
The number of insurance products targeting exotic pets such as reptiles, birds, and small mammals is rising, representing about 8% of the market

Market Size and Growth Trends Interpretation

With the pet insurance industry swelling to an anticipated $12.86 billion by 2027—despite just 2-3% of pet owners currently insured—and claims surging by over 50%, it's clear that as our furry (and feathered) friends become more valuable than ever, so too does the need for us to hedge against veterinary costs in a rapidly growing global market fueled by rising pet ownership and evolving exotic pet coverage.

Regional and Market Penetration Insights

Pet insurance adoption rate is higher among urban pet owners compared to rural, at 5.2% versus 1.7%
The top three states in the US with the highest pet insurance adoption rates are California, Texas, and Florida
The penetration rate of pet insurance in Australia is approximately 15%, higher than in the US, indicating different regional adoption levels

Regional and Market Penetration Insights Interpretation

While urban pet owners and states like California, Texas, and Florida lead the charge in pet insurance adoption—reflecting a growing recognition of pet health needs—Australia's higher penetration rate suggests that surprising regional differences still signal a trailblazing shift in how we value our furry friends’ well-being worldwide.