Almost 1 million new pets were insured in North America in 2022

The pet insurance market in North America grew by 23.5% in 2022, with premiums reaching a value of $3.51 billion (€3.1B). Pet insurance premiums accounted for $2.84 billion (€2.56B) at year-end 2021.

New data from NAPHIA’s 2023 State of the Industry (SOI) report revealed there are currently 5.36 million pets insured across North America. This is 21.7% more than in 2021 when a total of 4.4 million pets were insured in the region.

The data suggested an estimated 3 percent of the total potential North American pet health insurance market realized.

The report compiles data from NAPHIA members, representing around 98% of all pet health insurance coverage in effect in North America.

US

The US accounted for most of last year’s premiums, worth $3.22 billion (€2.9B). This is a 24.2% annual increase.

The total claims paid in 2022 accounted for $1.91 billion (€1.72B).

By state, most insured pets reside in California (18.6%), followed by New York (7.0%) and Florida (6.2%). Of those insured, 8 out of 10 pets were dogs, followed by cats (19.9%).

Canada

Premium volume in Canada totaled C$374 million ($248M/€224M), 19.3% more against 2021.

It is believed that insurance companies paid up to C$210.3 million ($154.7M/€139.7M) in claims last year.

Nearly 4 out of 10 (38.1%) insured pets reside in Ontario, Canada’s most populous province. British Columbia (19.5%) and Alberta (17.6%) follow.

In a similar trend as the neighboring country, most premium insurances in Canada cover dogs (76.9%). Premiums for cats represent 23.1% of the total.

Remarkable results

NAPHIA highlighted the remarkable results considering the growing economic pressures pet owners faced in 2022.

“We’re pleased that pet parents continue to recognize the value pet insurance provides, both in mitigating unexpected veterinary costs, as well as providing for their pet’s ongoing healthcare and well-being,” said President Rick Faucher.

According to Faucher, the product’s strong value proposition is driving “the significant advances the North American pet insurance industry has experienced over the past five years.”

NAPHIA’s Executive Director Kristen Lynch added that continued increases in the number of insured pets are “evidence of pet owners’ commitment to the health and well-being of their pets.”

“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.”