The use of animals in human life had modest beginnings; many North Americans used their furry companions as tools, aiding in practical tasks. But the connection between people and animals has changed drastically in recent years, giving rise to a whole new dynamic and the crucial pet insurance industry.
The pet insurance market in North America had grown in the past decade resulting in increased premium costs and volumes. In 2023, the total
premium volume for pet insurance in the United States reached almost four billion U.S. dollars and this number reached around
486 million Canadian dollars in Canada. In North America, pet insurance generally covers the payment—in part or in total—for the treatment of an injured or sick animal of an insured owner. Policies may also be paid out when a pet passes away, goes missing or is stolen. The main governing body of the pet insurance industry operating in the United States and Canada is the North American Pet Health Insurance Association (NAPHIA). Some major pet insurance companies in Canada include: Petplan Insurance, Trupanion, and Petsecure. In the U.S., there is Petplan as well, and others like, Healthypaws, Nationwide, and Embrace Insurance.
The origins of pet insurance in North America
The first pet insurance policy ever written, in 1890, focused solely on horses and livestock. The first ever policy issued in the United States, in 1982, was necessitated by the growing popularity of the canine star of the television series Lassie. Since then, the number of pet owners has grown tremendously in North America, as well as the individual number in variety of species. The
number of pet cats and dogs in Canada exceeded 17 million in 2024. Meanwhile,
U.S. households had over 60 million dogs alone. Veterinary costs and medicine for pets is often costly for pet owners, which is why they take out insurance to cover these expenses. In the U.S., vet care and medicine account for a substantial part of the overall
pet market sales.
What is the cost of pet insurance?
The cost of pet insurance varies between animals and regions. The
average accident and sickness insurance premiums for dogs in the U.S. have in the past roughly matched
average insurance premiums for dogs in Canada when adjusting for currency conversion. Pet insurance plans in North America may also cover preventative care such as vaccinations or elective procedures like neutering. Some companies in both Canada and the United States also offer the option of routine-care (or comprehensive) coverage. Other coverage options include: dental care, alternative treatment as well as the purchase of prescription drugs. The pet insurance market in North America has grown significantly in the past decade, with premium volumes rising. One may assume that this trend will continue. As households across North America place continued importance on safeguarding the well-being of their furry friend, the pet insurance industry will have prosperity.
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