Pet Insurance Market is estimated to be valued at USD 12.82 Bn in 2025 and is expected to reach USD 35.37 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 15.6% from 2025 to 2032.
The global pet insurance market is experiencing strong growth due to the growing pet population and increase in adoption of pet insurance around the world. Moreover, growing awareness regarding pet insurance and rise in prevalence of several diseases among pets is expected to boost the growth of the market. However, lack of standardized pet health codes for reimbursement and low adoption of pets in emerging countries is expected to hamper growth of the market.
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Current Event |
Description and its Impact |
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Regulatory Changes and Market Standardization Initiatives |
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Technological Disruption and Digital Transformation |
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Pet Type |
Share of Insured Pets (2025) |
Key Insights |
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Dogs |
80–82% |
Highest coverage due to higher veterinary costs, frequent medical needs, and owner willingness to insure. |
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Cats |
18–20% |
Growing adoption rates are pushing insurers to expand feline-focused plans and wellness add-ons. |
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Birds |
<1% |
Niche coverage, mostly urban exotic bird owners; limited accident-only policies available. |
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Small Mammals |
2–3% |
Includes rabbits, guinea pigs, ferrets; insurers offer limited accident or wellness coverage. |
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Reptiles/Exotics |
<1% |
Specialized insurers in North America and Europe provide tailored plans for reptiles and exotic pets. |
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Horses (Equine) |
Distinct segment |
Covered under equine insurance policies focusing on accidents, illness, and liability, especially in the U.S. and UK. |
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In terms of policy, the illnesses and accidents segment is expected to dominate the pet insurance market with 69.1% share in 2025, and this is attributed to the increase in awareness about pet insurance. Accident/illness policies are most commonly offered by pet insurance companies. People like these plans since they cover a lot of ground, protecting pets from both unexpected injuries and a wide range of medical problems, including infections, cancer, and hereditary diseases. Pet owners who want to protect themselves from unexpected costs are more likely to want broad coverage because veterinary costs are going up, especially for advanced diagnostics and surgeries. Accident-only policies are still available at lower premiums, but they are not as appealing as they do not cover enough.
For instance, in June 2025, Universal Sompo General Insurance added pet insurance coverage in India to its list of services. The policy covers the costs of veterinary care, including treatment for illnesses, accidents, and medical conditions like infections and hereditary diseases. The insurance company wants to help pet owners who want full coverage for their pets as more people become aware of the issue and pet health care costs rise.
In terms of animal, the dogs segment is expected to dominate the market over the forecast period and this is attributed to the increase in burden of cancer in dogs. There are a few reasons why this is the case: dogs usually cost more to take to the vet than cats or other pets, they are more likely to get hurt or have long-term health problems, and people in places like North America and Europe care a lot about their dogs' health and well-being. Because of this, dog owners are more likely to buy insurance to protect themselves from expensive treatments.
For instance, in October 2025, Healthy Paws Pet Insurance has teamed up with Airvet to make it easier for people to get veterinary care through telehealth services. The partnership lets pet owners, especially those with dogs and cats, talk to vets online about illnesses, accidents, and preventive care. This project shows that there is a growing need for digital healthcare solutions in the pet insurance industry, which makes things easier and cheaper.
In terms of provider, the private segment is expected to dominate the market over the forecast period and this is attributed to the increase in adoption of pet insurance due to increase in awareness about pet insurance. Private insurers are in charge as they can offer flexible plans that cover everything from accidents to illnesses, and they often include wellness add-ons. They also put a lot of money into digital innovation, which speeds up claims processing, adds mobile app integration, and makes the customer experience more personal. Strong marketing campaigns and a wide range of distribution channels, such as brokers, agencies, and online platforms, help them stay on top of the market.
For instance, in October 2025, Verisk started the first standardized pet insurance program in the industry to help private insurers offer more options in the pet insurance market, which is currently underrepresented. The program gives insurers a way to make products that are consistent and complete. This helps them speed up the underwriting process and meet the growing demand for accident and illness coverage, while also encouraging innovation and growth in the private sector.
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North America is expected to gain highest share of 43.5% in the per insurance market in 2025, owing to the increasing pet adoption and increase in awareness regarding veterinary health, and improving veterinary healthcare infrastructure in the region. For instance, with the increase in number of pet or increase in pet adoption, the demand or need for pet insurance is also increasing with a rapid pace.
For instance, in November 2025, BMO announced plans offer pet insurance in Canada through a partnership with Trupanion and Walnut Insurance. The new service will cover cats and dogs, making it easier for pet owners to pay for vet bills for accidents, illnesses, and medical treatments. This move gives more options for financial protection and shows that there is a growing need for all-in-one pet care solutions.
Europe is anticipated to be the fastest growing region in the pet insurance market, due to high awareness among pet owners, rising veterinary costs, and the strong culture of treating pets as family members. Comprehensive policies covering accidents, illnesses, and preventive care are widely adopted, while supportive regulations and established insurance providers further drive demand across the region.
For instance, in march 2025, Dalma, a pet insurance startup based in Paris, raised €20 million to grow its product and service offerings. The funding will help the company's main pet insurance business grow, and it will also help it expand into health and wellness products for pets. Dalma wants to get a greater proportion of Europe's growing pet care market by offering insurance along with other lifestyle solutions.
In 2025, the U.S. pet insurance market is booming as veterinary costs are going up, more people are adopting pets, and more people are treating their pets like family. Demand is driven by more awareness, strong marketing by insurers, and personalized digital plans.
For instance, in November 2025, in the US, Pumpkin Pet Insurance released a new tool called the Pet Health Predictor that uses AI. The tool is meant to help dog and cat owners think about possible health risks and is a good addition to Pumpkin's insurance plans because it encourages preventive care. Through data-driven insights, the initiative aims to lower unexpected vet bills and improve the health of all pets.
In 2025, the UK pet insurance market is performing well due to veterinary costs are rising, pet owners are becoming more aware, and pets are being treated like family members. Private insurance companies create demand by offering flexible plans, wellness add-ons, and new technology. Strong marketing and a wide range of distribution channels help adoption even more, making the UK one of Europe's top markets.
For instance, in July 2025, Pets at Home, a UK-based store, is now ready to launch its own pet insurance, which will work with Companion Care and Vets4Pets surgeries. The goal of the program is to give pet owners full coverage, making it easier for them to get veterinary care and protecting their finances. Pets at Home's position in the growing UK pet insurance market is stronger because of this move.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 12.82 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 15.6% | 2032 Value Projection: | USD 35.37 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Medibank Private Limited, Petplan, Oneplan Insurance, Dotsure.co.za (Hollard), Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, Embrace Pet Insurance Agency LLC, Anicom Holdings Inc., Oriental Insurance Company Ltd., MetLife Services and Solutions LLC (PetFirst Healthcare LLC), and Crum & Forster Pet Insurance Group (Hartville Pet Insurance Group), among others. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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One of the key factors expected to augment the growth of the global pet insurance market over the forecast period is the growing pet population across the world. For instance, billions of households worldwide are unified by a common theme, pet ownership. According to the Health For Animals, more than half (50%) of the global population is estimated to have a pet at home. Worldwide, dogs are present in around one in three homes, and almost a quarter of pet owners have a cat. Families in the U.S., EU, and China alone have over half a billion dogs and cats.
Another factor which is driving the growth of the global pet insurance market is the rise in adoption of pet insurance around the world. For instance, with the rise in pet adoption and rise in awareness among people about veterinary health, the adoption or demand for pet insurance is also increasing worldwide.
Rising awareness regarding pet insurance is expected to provide significant growth opportunities for players in the global pet insurance market. For instance, pet insurance helps cover unexpected and expensive veterinary bills for various animals. Pet insurance also proves to be a boon for pets that may need to make use of additional healthcare facilities as they age.
Rise in prevalence of several diseases among pets, especially dogs, is expected to offer significant growth opportunities for players in the pet insurance market. For instance, cancer strikes dogs at a rate that is nearly identical to that of humans.
Rising global pet adoption is a key driver of the expanding pet insurance market size, as more households seek financial protection against rising veterinary costs. According to the World Animal Foundation, in 2025, over 5.8 million pets are surrendered to shelters annually, with just over 4 million adopted worldwide. This surge in adoption reflects a growing cultural trend of treating pets as family members, which directly boosts demand for comprehensive insurance plans covering accidents, illnesses, and wellness care. As adoption rates rise, insurers are capitalizing on this trend by offering flexible, digitally enhanced policies to meet the evolving needs of pet owners.
Pet care has made tremendous strides over the last few years worldwide. Increase in number of pet owners and growing pet population is also increasing the reported rates of pet diseases, such as the prevalence of cancer is increasing steadily across the world. For instance, osteosarcoma (the most common form of bone cancer) in dogs is increasing, which in turn is or has increased demand for pet insurance to cater to the financial burden pet owners have to face to get their pets treated. This trend is also expected to continue over the forecast period.
The pet insurance industry is growing around the world as more people are getting pets and spending more on veterinary care. Average veterinary bills keep going up, especially for diagnostics, surgery, and managing chronic diseases. This makes premium-based models that are easy to understand more appealing to pet owners.
Penetration is still very uneven across regions. Northern Europe has the highest adoption rate, while many parts of Asia and North America still have low uptake rates, even though many people own pets. This difference shows that there are gaps in market education and that people are sensitive to how much they can afford. As traditional insurers, specialist carriers, and insurtech newcomers compete with unique product designs, direct-to-vet payment models, and automated digital claims, the competitive landscape is getting more intense.
Profitability pressures continue as claims inflation and more frequent treatments raise loss ratios. This forces insurers to tighten their underwriting standards, change their rate structures, and set prices based on breed, age, and location. Markets with low penetration but rising veterinary spending, especially in urban APAC and LATAM, have a lot of room to grow through partnerships and easy-to-use digital distribution.
*Definition: Pet insurance is a form of insurance that is often overlooked by pet owners. It is a healthcare policy for a pet that will provide reimbursement for specific health expenses that are covered by the policy. It is a form of insurance that pays, partly or in total, for veterinary treatment of the insured person's ill or injured pet.
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About Author
Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.
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