US: pet insurance growth stabilizing after years of double-digit growth
According to credit rating agency S&P, the US pet insurance sector continues to grow but at a slower pace than in previous years.
The analysis found that the year-over-year (YoY) increase in net premiums earned by US pet insurance companies hit 10.9%, down significantly from the industry’s peak annualized growth rate of 32.5%.
According to the report, the industry reported a record $2.8 billion (€2.6B) in net premiums in 2024.
In 2022, the industry saw 27% growth, and in 2023, that fell to 21.7%. S&P’s numbers roughly match the North American Pet Health Insurance Association’s state of the industry report from 2024. The industry group has yet to release a report for 2025.
Major players and biggest expenses
The S&P report found Trupanion received $1.1 billion (€990M) in direct premiums in 2024. Nationwide was close behind, with $1 billion (€920M) in premiums. Independence American Insurance Co. was in a distant third place, with $491.3 million (€445.2M).
Trupanion’s incurred loss ratio, the percentage of its premiums going toward coverage, was 72.3%. Nationwide’s incurred loss ratio was somewhat higher, at 76.9%.
Independence had a much lower direct incurred loss ratio, with just 57.5% of premiums going toward veterinary expenses.
A separate report by Embrace Pet Insurance revealed some of the most common and expensive claims, including allergic dermatitis and diarrhea, which can cost hundreds. Cranial cruciate ligament tears, the tenth most common claim, cost $1,447 (€1,382.05), up 5% YoY.
Inflation driving insurance
High veterinary services inflation is likely contributing to the growth of pet insurance in the US and worldwide. According to the Bureau of Labor Statistics, the price of veterinarian services rose by 7.9% from February 2023 to February 2024.
They rose a further 8.1% from February 2024 to February 2025, even as inflation for other goods has declined.
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