Pet Insurance Market Size, Share & Trends Analysis Report By Coverage (Accident-only, Accident & Illness), By Animal (Dogs, Cats), By Sales Channel (Agency, Broker, Direct, Bancassurance), By Region, And Segment Forecasts, 2025 - 2033

Pet Insurance Market Summary

The global pet insurance market size was estimated at USD 18.61 billion in 2024 and is projected to reach USD 79.61 billion by 2033, growing at a CAGR of 17.55% from 2025 to 2033. The growing pet population, adoption of insurance in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, rising penetration of Insurtech, and humanization of pets are some of the critical drivers of this market.

According to the most recent data from NAPHIA's 2024 State of the Industry (SOI) report, 6.25 million pets are insured in North America at the moment. Compared to 2022, when there were 5.36 million pets insured in the region, this indicates a 16.6% growth. The global pet insurance industry is anticipated to grow as a result of the rising prevalence of diseases in dogs and cats as well as the growing trend of pet adoption. The industry is growing because insurance has emerged as a vital tool for pet owners to manage the costs of serious medical conditions such as cancer, chronic illnesses, and unintentional injuries. Since treatments frequently need large capital investments, specialist staff, and cutting-edge diagnostic technology, which raises prices for pet owners, the increase in demand for veterinary healthcare facilities encourages adoption even more.

The rise in pet adoption, particularly during the COVID-19 pandemic, played a catalytic role in reshaping the market. A survey by Petplan in the UK revealed that nearly 26% of owners welcomed a new pet during lockdowns, with companionship and work-from-home flexibility cited as major reasons. This surge in pet ownership translated into stronger demand for financial protection, with about one-fifth of new owners considering insurance policies. Companies like Animal Friends Insurance also innovated by offering coverage for remote veterinary consultations, reflecting the trend of digital healthcare integration in the pet sector.

Globally, cost inflation in veterinary care is a central driver for insurance uptake. A survey conducted in the UK by Petplan showed that around 26% of pet owners welcomed a new pet during lockdowns, citing companionship and work-from-home flexibility as the major reasons. This rise in pet ownership has translated into stronger demand for financial protection, with about one-fifth of new owners considering insurance policies.

The sector is also being shaped by new trends that are specific to each country. The majority of insurance claims in Australia are for "designer dogs," according to data from April 2025. This suggests that there is an increasing requirement for plans that cover health risks unique to breeds and genetics. According to June 2025 data, the total amount of pet owners in South Korea has risen to over 15 million, indicating a sizable untapped insurance market. Long-term market potential is further stimulated by expanding urbanization and pet humanization. Another changing aspect is regulatory scrutiny. The Australian Securities and Investments Commission (ASIC), with an aim to investigate consumer protection and compliance practices temporarily halted pet insurance plans from well-known companies, such as Medibank and Woolworths, in 2023. These instances highlight how crucial transparent product design and reasonable price are to maintaining consumer trust.

Furthermore, a crucial trend in the sector is the inclusion of pet insurance in employee benefits. Employers are including pet insurance benefits in their employee health insurance packages with an aim to retain Gen Z and millennial employees. This illustrates how pet care is becoming more deeply rooted in the corporate and consumer ecosystems.

Overall, with rising pet ownership, higher veterinary costs, growing pet humanization, and innovations in policy design, the global pet insurance industry is poised for robust growth. However, evolving regulatory oversight and shifting consumer expectations will remain critical determinants of how insurers design sustainable and consumer-friendly offerings.

In addition, Insurtechs are reshaping the industry by introducing AI-driven underwriting, digital claims management, and telehealth integration, which streamline processes and improve customer experience. Entry of these platforms into the sector highlights global momentum, with technology-driven platforms enabling faster product launches and tailored plan coverage. Automation and big data analytics are allowing insurers to assess risk more accurately, reduce fraud and improve pricing structures. Insurtechs also leverage mobile-first distribution channels, expanding accessibility and engagement with younger, digital-native pet owners. In addition, partnerships with veterinary networks and embedded insurance models are making policies more relevant and easier to purchase. Overall, insurtech is driving efficiency, affordability, and personalization, accelerating the adoption of pet insurance worldwide.

Global Pet Insurance Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global pet insurance market report based on coverage, animal, sales channel, and region.

• Coverage Outlook (Revenue, USD Million, 2021 - 2033)
• Accident & Illness
• Accident only
• Others
• Animal Outlook (Revenue, USD Million, 2021 - 2033)
• Dogs
• Cats
• Others
• Sales Channel Outlook (Revenue, USD Million, 2021 - 2033)
• Agency
• Broker
• Direct
• Bancassurance
• Others
• Regional Outlook (Revenue, USD Million, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Italy
• Spain
• Denmark
• Sweden
• Norway
• Austria
• Hungary
• Poland
• Romania
• Czech Republic
• Switzerland
• Luxembourg
• Portugal
• Belgium
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Thailand
• Latin America
• Brazil
• Argentina
• MEA
• South Africa
• Saudi Arabia
• UAE
• Kuwait
• Qatar
• Oman

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