According to the “State of the Industry: The Impact of Pet Insurance on U.S. Veterinary Practices in 2026” report recently published by Pawlicy Advisor and the American Animal Hospital Association (AAHA), 86% of veterinarians adjust their recommended treatment plans at least once a week because of client cost concerns. Veterinary professionals reported having, on average, 4.4 difficult financial conversations per week, up from 4 per week in last year’s survey.
When asked about the price point at which recommended care is declined, 85% of survey respondents reported $1,000 or less, whereas 47% reported clients declining care costing $500 or less.
Respondents also reported that an average of 13% of euthanasias were performed because pet owners were unable to afford treatment.
Most respondents (87%) agreed that pet insurance helps clients accept recommended care, with 73% observing better treatment compliance when caring for insured pets. However, only 39% of teams often discuss insurance with pet owners.
Additional findings around pet insurance include:
- 48% of practices proactively recommend pet insurance.
- 5.1% of practices only discuss insurance if a client asks about it.
- Practices that proactively recommend pet insurance have twice as many insured patients as practices that only discuss it when asked (7.5% vs. 3.5%).
Almost 70% of survey respondents reported barriers to discussing pet insurance with clients, with the two most significant being insufficient time during appointments (27.7%) and uncertainty about which insurance provider to recommend (21.5%). Eight in 10 reported feeling uncomfortable recommending a specific insurance provider because of the legal risks of doing so without an insurance license.
More than half (60.5%) of the veterinary professionals surveyed believe that a comparison marketplace staffed by licensed experts is most likely to help clients choose the right coverage. A similar number believe that a comparison PDF would be the best resource for their practice, with brochures and new pet checklists also frequently selected.
Fifty-seven percent reported being interested in free resources from an independent pet insurance marketplace.
Recommendations for Veterinary Practices
The report includes strategic recommendations for practices, including:
- Track the percentage of insured pets in the practice.
- Establish protocols, including team scripts and client handouts, for insurance conversations during a pet’s first visit.
- Include the entire team, especially front-desk staff, in insurance conversations.
- Use handouts, such as comparison PDFs, brochures, and new pet checklists, to reduce the time needed for insurance discussions.
- Direct clients to an independent, licensed marketplace, rather than making recommendations.
“What’s preventing veterinary teams from discussing insurance doesn’t appear to be skepticism in the product, but what many believe is the time the conversation takes and the fear that the conversation will end in a request for a policy recommendation that veterinary professionals aren’t licensed to answer,” said Woody Mawhinney, chief executive officer of Pawlicy Advisor. “Most of the professionals we surveyed said an independent comparison marketplace with licensed experts is the likeliest path to the right coverage.”
The complete report is available on Pawlicy Advisor’s website.