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Pet Insurance in North America, 5th Edition


Attention: There is an updated edition available for this report.

Pet Insurance in North America, 5th Edition

Now in its fifth edition, Packaged Facts’ Pet Insurance in North America is the most comprehensive examination of the U.S. and Canadian pet insurance markets available and a must-have for any company interested in this dynamic industry. Revenues (measured as gross written premiums) remained in the double digits in 2013, while showing robust growth over the previous five years, recession notwithstanding. Packaged Facts expects the North American market for pet insurance to continue to chart strong annual gains over the next five years, with the high level of competitive activity generating increased awareness and demand among pet owners.

Industry pioneer Veterinary Pet Insurance (VPI) continues to lead the market. However, both the U.S. and the Canadian pet insurance markets have experienced significant market share shifts during the past five years as newer entrants have gained traction and made huge inroads into the business. The industry has been good to new entrants including Trupanion, PetPlan and PetFirst, while two smaller players—PurinaCare and PetSafe—have left the scene (with PurinaCare’s policies acquired by Pethealth). The industry has also seen some changes in ownership and financial backing, strengthening the prospects of companies including Embrace, Hartville, Trupanion and Western Financial.

This latest edition of Packaged Facts’ groundbreaking 2003 report offers a road map for competing in this market both now and in the years ahead. This edition includes expanded coverage of alternative payment options and competitive forces (e.g., Banfield, Pet Assure, pet savings accounts), the impact of word of mouth and social media, more detail about the Canadian market, and meticulous discussions and examples of competitors’ marketing and go-to-market strategies. Every pet insurance player is profiled in depth, including Embrace, Fetch (Petplan), Hartville (ASPCA), Healthy Paws, PetFirst, Pethealth, PetPartners (AKC), PetPremium, Pets Best, Pets Plus Us, Protect Your Bubble, Trupanion, Western Financial (Petsecure), and VPI. Statistics provided include historical and projected market revenues, number of policies in force, and company shares (both U.S. and Canadian), along with profiles of pet owners and pet insurance purchasers, based on data from sources including Simmons and Packaged Facts own pet owner surveys.


  • Executive Summary
    • Introduction
      • Scope of Report
      • Report Methodology
    • Market Trends
      • North American Market Growth Continues
      • Number of Policies in Force
      • Cautiously Optimistic Consumers
        • Table Economic Outlook of U.S. Pet Households: 2009 vs. 2013 (percent)
      • Vet Costs Rising
      • Veterinarians Increasingly Supporting Pet Insurance
      • Consumers Aware But Some Confused
      • Getting the Word Out
    • Competitive Overview
      • Top North American Marketers
      • A New Ball Game
      • Four Main Distribution Channels
      • The Underwriting Advantage
      • Pethealth Buys PurinaCare's Pet Insurance Assets
      • Protect Your Bubble Crosses the Ocean
      • Pets Plus Us Debuts in Canada
      • PetPremium Enters the Fray
      • Walmart Throws Hat in Ring
      • Cross Border Activity Intensifies
      • Myriad Competitive Payment Options
    • Consumer Trends
      • Growth in Pet Households Outpacing Overall Household Growth
      • Penetration Rates for Pet Insurance
      • Awareness of Pet Insurance
      • Top Reasons for Never Having or Discontinuation of Pet Insurance Policies
  • Market Trends
    • Introduction
      • Market Definition
      • Range of Coverage
      • Typical Restrictions
      • Gross Written Premiums and Conversion Rates
    • Market Size and Composition
      • North American Market Growth Continues
        • Table North American Pet Insurance Market Revenues: United States, Canada, and North America, 2005-2013 (in millions of U.S. dollars)
      • Number of Policies in Force
      • Share of Policies by Animal Type
    • Market Outlook
      • Cautiously Optimistic Consumers
        • Table Selected U.S. Economic Measures: 2008-2013 (percent and number in millions)
      • Pet Owners Still Spending Less
        • Table Level of Agreement with Statement: "I am spending less on pet products because of the economy," 2010-2013 (percent)
        • Table Economic Mood of U.S. Pet Households: 2009 vs. 2013 (percent)
        • Table Economic Outlook of U.S. Pet Households: 2009 vs. 2013 (percent)
        • Table Percentage of Dog and Cat Owners Who Have Visited Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, September 2011 vs. March 2012
      • Vet Costs Rising
        • Table Average U.S. Household Expenditures on Veterinary Services, 1998-2011 (in dollars)
      • Veterinarians Increasingly Supporting Pet Insurance
      • Consumers Aware But Some Confused
      • North American Pet Health Insurance Association (NAPHIA)
      • Pets as Family Trend Continues
        • Table Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2013 (percent)
      • Human/Animal Bond Bolsters Pet Health/Wellness Spending
        • Table Level of Veterinary Expenditures by Human-Animal Bond and Animal Type, 2011 (mean dollar per household)
        • Table Mean Number of Veterinary Visits: By Human/Animal Bond Among Dog and Cat Households, 2011
      • Pet Ownership and Population Trends
        • Table APPA's Total Number of Dogs and Cats in the United States: By Type, 2000-2012
        • Table Changes in the U.S. Population and Pet-Owning Population, 1996-2012 (number and percent)
        • Table Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2007-2012 (percent of U.S. households)
        • Table Dog or Cat Ownership Rates by Age Bracket: 2007-2012 (percent of U.S. households)
      • Shoppers Buying More Pet Products Online
        • Table Selected Internet-Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2013 (percent and index)
        • Table Age of Dogs and Cats, 2013 (percent of pet owners)
        • Table Percentage and Number of Overweight and Obese Dogs and Cats, 2012
      • Increased Competition
      • Credit Card Usage Shows Big Drops
        • Table Credit Card Ownership and Usage: By Frequency, 2008-2013 (percent)
      • Looking Ahead
  • Competitive Overview
    • Market Share Trends
      • Top North American Marketers
        • Table Estimated Share of North American Pet Insurance Market: By Company, 2005-2013 (percent)
        • Table Estimated Share of U.S. Pet Insurance Market: By Company, 2005-2013 (percent)
        • Table Estimated Share of Canadian Pet Insurance Market: By Company, 2005-2013 (percent)
    • Competitive Trends
      • A New Ball Game
      • Consistent Marketing Messages
      • Four Main Distribution Channels
      • The Underwriting Advantage
      • Pethealth Buys PurinaCare's Pet Insurance Assets
      • PetSafe Enters, Quickly Exits
      • Protect Your Bubble Crosses the Ocean
      • Pets Plus Us Debuts
      • PetPremium Enters the Fray
      • Walmart Throws Hat in Ring
      • Cross Border Activity Intensifies
      • British Software Invasion
      • Review and Comparison Sites Driving Awareness, Business
      • Insurers Embrace Social Media
        • Table Social Media Activity in the Pet Insurance/Healthcare Payment Arena, 2013
      • The Industry Gets Interactive
      • Employees Benefit from Pet Insurance
      • Myriad Payment Options
  • Competitor Profiles
    • Embrace Pet Insurance
      • Background
      • Embrace's Brands
      • Core Values
      • Marketing Strategies
      • Online Activity
      • Healthy Pet Deductible
      • Plan Changes
    • Hartville Group, Inc.
      • Company Overview
      • Types of Plans
      • Management Shakeup Yields Growth
      • ASPCA Venture Going Strong
      • Hartville Premiums Rise
        • Table Hartville Group Gross Written Premiums, 2001-2013 (in millions of U.S. dollars)
        • Table Hartville Group Number of Active Policies, 2001-2013
      • Marketing Focus
      • Increased Focus on Veterinary, Company Benefits Channels
    • Healthy Paws Pet Insurance
      • Company Overview
      • Profits with Purpose
      • Simplicity Wins
      • Change in Underwriters
      • Alternative Medicine Added
      • Backing from a Leading Brokerage
      • Marketing and Customer Care
    • PetFirst Healthcare LLC
      • Company Overview
      • New Insurance Plans
      • Company Strategy
      • Kroger Connection Ends
      • PetFirst Inks Continental Kennel Club Deal
      • The Petfinder.com Connection
      • The HomeAgain Partnership
      • PetFirst Looks to Grow Employee Benefits Business
    • Pethealth, Inc.
      • Company Overview
      • Revenue Growth
        • Table Pethealth Revenues, 2001-2012 (in millions of Canadian dollars)
      • Pet Insurance Operations
      • PurinaCare Acquisition a Sign of Things to Come?
      • North American Pet Insurance Performance
        • Table Pethealth Pet Insurance North American Gross Written Premiums, 2001-2013 (in millions of U.S. dollars)
        • Table Number of Pethealth Pet Insurance North American Policies in Force, 2001-2013
        • Table Share of Pethealth Pet Insurance North American Gross Written Premiums: U.S. vs. Canada, 2005-2013 (percent)
      • Pet Insurance Programs and Marketing
      • Pethealth Launches Aggregator Site-Petinsurance.ca
      • Non-Insurance Operations
      • PetPoint Shelter Management Software
      • 24PetWatch Pet Registry Services
      • Petango.com
    • PetPartners, Inc.
      • Company Background
      • AKC and CFA Policy Types
      • AKC and CFA Program Marketing
    • Petplan (Fetch, Inc.)
      • Company Overview
        • Table Petplan Gross Written Premiums 2009-2013 (in millions of dollars)
      • Accolades Accumulate
      • The U.K. Connection
      • Fetch Moves into Canada
      • A Number of Strategic Partners
      • Marketing Initiatives
    • Pets Best Insurance Services
      • Company Overview
      • BestBenefit Accident and Illness Plans
        • Table BestBenefit Accident & Illness Plan Coverage
      • New Plans Introduced
      • Channel Focus
      • Prompt Payment
      • Pets Best and Progressive
      • Marketing Initiatives
    • Trupanion
      • Company Background
      • Own Underwriter
      • Financing, Growth and Future Aspirations
      • Approach to Channels
      • Trupanion Partners
      • Therapeutic Food Discount
      • Company Introduces Trupanion Express
      • Consumer Approach
      • Policy Changes
      • Trupanion Online
    • Veterinary Pet Insurance Co.
      • Company Overview
      • Product Lineup
      • Emphasizing Wellness Care
      • VPI Hits New High Water Mark
        • Table Veterinary Pet Insurance Gross Written Premium 1998-2013 (in millions of dollars)
      • Marketing Initiatives
      • Public Relations Mix "Fun Facts" with Pet Health Tips
      • Pet Parent's Day
      • The Iams Connection
      • Veterinary Channel Remains VPI Focus
      • Voluntary Benefits Leader
    • Western Financial Insurance Company
      • Company Background
      • Seven Brands, Including Three New Ones
      • Three Products Discontinued
      • Veterinary Channel a Key Strategy
      • New Mobile App
      • Focus on Shelters
      • Petsecure and the City of Calgary
      • Premiums, Policies Return to Solid Growth
        • Table Western Financial Pet Insurance Gross Written Premiums, 2003-2012 (in millions of U.S. dollars)
        • Table Western Financial Pet Insurance Number of Active Policies, 2005-2012
      • Strategic Alliances
      • Marketing Initiatives
  • Consumer Trends
    • Pet Ownership Overview
      • Methodology and Data Sources
      • Growth in Pet Households Outpacing Overall Household Growth
        • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2009-2013 (percent of and number of U.S. households in thousands)
        • Table Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2007, 2009, 2011, and 2013 (percent of U.S. households)
        • Table Household Populations for Selected Dog- or Cat-Owning Classifications, 2007, 2009, 2011, and 2013 U.S. households in 000s)
      • Overall Demographics for Dog Owners
      • Income, Age and Other Skews by Number of Dogs Owned
      • Overall Demographics for Cat Owners
      • Household Composition Skews by Number of Cats Owned
        • Table Demographics for Dog Ownership, 2013 (percent, number of households, and index)
        • Table Selected Demographics for Keeping One Pet Dog, 2013 (percent, number of households, and index)
        • Table Selected Demographics for Keeping Two or More Pet Dogs, 2013 (percent, number of households, and index)
        • Table Demographics for Cat Ownership, 2013 (percent, number of households, and index)
        • Table Selected Demographics for Keeping One Pet Cat, 2013 (percent, number of households, and index)
        • Table Selected Demographics for Keeping Two or More Pet Cats, 2013 (percent, number of households, and index)
    • Pet Owners and Insurance
      • Penetration Rates for Pet Insurance
      • Awareness of Pet Insurance
      • Word-of-Mouth Replaces Vets as Most Important Source of Pet Insurance Awareness
      • Top Reasons for Never Having Pet Insurance Policies
      • Top Reasons for Discontinuation of Pet Insurance

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