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Wednesday, May 22, 2024

The North American Pet Insurance Market Grows Over 100% in Four Years

The North American Pet Health Insurance Association (NAPHIA) has just released its 2022 State of the Industry Report, revealing some impressive figures and milestones for the pet insurance sector in North America. According to the report, the industry saw unprecedented growth in 2021, with total in-force premiums exceeding $2.83 billion USD, representing a more than 30.5% increase from the previous year. Additionally, there were over 4.41 million insured pets across North America, marking a 27.7% increase from 2020.

The Executive Director of NAPHIA, Kristen Lynch, attributes this growth to the significant societal and behavioral changes related to pet ownership. The pandemic led to a surge in household pet adoptions and purchases, as well as an increase in work-from-home arrangements, all of which contributed to higher growth rates in the pet insurance industry.

In the U.S., total premium volume amounted to $2.6 billion USD, representing a 30.4% annual increase, while in Canada, total premium volume totalled $313.4 million CAD, an increase of 28.1% over the previous year. Rick Faucher, President of NAPHIA’s Board of Directors, noted that with approximately 4.4 million pets currently insured and a total potential market of about 175 million North American pets, there is still considerable room for continued industry growth.

In terms of pet insurance penetration rates, they have increased to approximately 2.48% in the U.S. and 3.10% in Canada, indicating that the industry has only captured a small portion of the potential market. The industry continues to experience double-digit growth, marking the seventh consecutive year of such growth. This suggests that there is significant potential for sustained, long-term growth in the pet insurance sector.

The NAPHIA report also highlights some key figures for both the United States and Canada. In the U.S., there were 3,979,282 pets insured at the end of 2021, with the largest share of insured pets residing in California, New York, and Florida. Similarly, in Canada, there were 432,533 pets insured, with the largest share residing in Ontario, British Columbia, and Alberta. These figures illustrate the growing demand for pet insurance in both countries.

It’s important to note that the report is compiled using data validated by the global multinational risk management and advisory firm, Willis Towers Watson, and represents approximately 99% of all pet health insurance coverage in effect in North America.

The North American Pet Health Insurance Association (NAPHIA) is a coalition of reputable pet health insurance organizations from across the United States and Canada. Through proactive research, data sharing, and advocacy efforts, NAPHIA works to advance and grow the pet insurance industry and marketplace, collaboratively addressing challenges and opportunities in the industry. With the continued growth and potential for sustained long-term growth, it’s clear that the pet insurance sector is poised for further expansion and development. For more information on the industry data, visit naphia.org/industry-data/.

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