The U.S. pet insurance market grew by double digits in 2022 as policyholders spent an all-time high of $3.22 billion and the number of covered pets rose to a record 4.85 million.
In the United States and Canada, the industry generated more than $3.5 billion in combined revenue, a 23.5% jump from the year before. The number of insured Canadian pets surpassed 500,000 for the first time.
“With more than 5 million pets now insured across North America, it’s clear that more and more pet owners are viewing pet health insurance as an ideal way to ensure their pets are well cared for,” said Kristen Lynch, executive director of the North American Pet Health Insurance Association.
The trade group’s State of the Industry Report found that U.S. spending on pet insurance skyrocketed by 24.2% in 2022. Of the 4.85 million insured U.S. pets, 80% were dogs.
“2022 marked a return to pre-COVID levels of growth for our industry,” said Rick Faucher, NAPHIA’s president and the CEO and founder of Toto Pet Insurance. “This steady growth is significant during a period when many North Americans were also forced to make difficult decisions on their household spending.
“It’s the product’s strong value proposition that is driving the significant advances the North American pet insurance industry has experienced over the past five years.”
According to the report, the five largest U.S. insurers and their 2022 sales were:
- Nationwide, $860.6 million
- Trupanion, $478.2 million
- Healthy Paws, $379.4 million
- Pets Best, $365.0 million
- Embrace, $244 million
Trupanion was the most popular insurer in Canada, with $178 million in sales.
Annual premiums rose by single digits in the United States. For example, the average cat owner paid $387 in 2022 for accident and illness coverage, up 4.7% in one year, while the average dog owner paid $640, an increase of 2.4%.
U.S. pet insurers paid more than $1.9 billion in claims in 2022.
“We know from various research studies that owners of insured pets are more likely to bring their pets in for regular shots, checkups and emergency treatment, as well as to follow the recommendations of their veterinarian,” Lynch said.