Canada: Pet insurance growth slows despite record year

More than 643,000 pets in Canada were insured in 2025, including over 473,600 dogs and nearly 170,000 cats, according to new data from the North American Pet Health Insurance Association (NAPHIA).

Based on Statista’s estimate of 17.3 million pet dogs and cats in Canada as of May 2026, this represents an overall pet insurance penetration rate of 3.7%. Dogs had a rate of 5.6%, compared with 1.9% for cats.

While the insured pet population increased 3.9% year-over-year (YoY) in 2025, NAPHIA’s State of the Industry Report 2026 says this was the slowest annual growth in 5 years. 

Published on 21 June, the report analyzed data from US and Canadian pet health insurance (PHI) providers in the NAPHIA member database.

Market performance

In-force gross written premiums (GWP), which measure the total value of insurance premiums written before deductions, reached a record CA$660.5 million ($462.4M/€409.5M) in 2025. 

However, its 13.1% YoY increase was the smallest since the start of the pandemic and below the 5-year average annual growth rate of 20.5%.

Both dog and cat insurance followed a similar trend. Dog insurance GWP rose 12.2% YoY to CA$556.3 million ($389.4M/€344.9M), while cat insurance GWP increased 18% to CA$104.2 million ($72.9M/€64.6M).

At the provincial level, Ontario held the largest share of in-force GWP (37.6%) and pet ownership (36.2%). It was followed by British Columbia (GWP 25.5%; pet ownership 23.1%), Alberta (GWP 17.9%; pet ownership 18.7%) and Quebec (GWP 11.6%; pet ownership 13.2%).

Cost of premiums

Among insurance with embedded wellness products, the average annual premium for dogs increased 12.6% YoY to CA$2,623 ($1,836/€1,626), the highest level since at least 2021. For cats, premiums rose 21.9% to CA$1,499 ($1,049/€929).

Premiums for accident & illness policies increased 9.9% YoY to CA$1,176 ($823/€729) for dogs and 9.1% to CA$601 ($421/€373) for cats.

Meanwhile, accident-only policies declined by 6.9% YoY to CA$251 ($176/€156) for dogs. Premiums in this segment remained between CA$242 ($169/€150) and CA$270 ($189/€167) from 2021 to 2024.

Accident-only policies for cats, on the other hand, grew 4.4% last year. Premiums ranged from CA$189 ($132/€117) to CA$222 ($155/€138) from 2021 to 2024, before settling at CA$212 ($148/€131) in 2025.

Most common claims

According to the report, gastrointestinal (GI) conditions were the most common insurance claims for both dogs and cats in 2025 in North America, based on the US and Canada. 

Dogs were also commonly treated for otitis (ear infections), skin conditions (including infections, masses and dermatitis), anxiety, behavioral and neurological conditions, and allergies.

Among cats, the most frequently reported conditions included dental disease, urinary tract infections, anxiety, behavioral and neurological conditions, and respiratory conditions.