US: pet insurance soars as vet costs surge

Pet health care in the US has become increasingly expensive over the years. In its 2024 Pet Economy report, market analysis firm Bloomberg Intelligence (BI) noted that while the average cost for a standard vet visit can easily reach $1,000 (€927.94), more complex cases may lead to bills approaching $10,000 (€9,278.55).

According to the Bureau of Labor Statistics, the price of urban veterinarian services rose by 7.9% from February 2023 to February 2024.

This financial burden is one of the main drivers behind the rising demand for pet insurance.

According to the North American Pet Health Insurance Association (NAPHIA), premiums in the US increased by 22% in 2023 and amounted to about $3.9 billion (€3.6B) at year-end.

Breakdown by animal

Dog owners make up the bulk of the pet insurance market, with dogs representing over 80% of insured pets in 2023. According to BI, canine care is typically more expensive, resulting in higher premiums than other pets. Premiums start at just under $1,000 (€927.94) annually for a 1-year-old dog but can exceed $2,000 (€1,855.70) by age 10.

Premiums for cats increased by 26% in 2023, reflecting the growing recognition of the value of insurance for feline health.

According to BI, only 2 million dogs were insured nationwide in 2019, which rose to over 4 million in 2023. Similarly, the number of cat premiums was 420,000 5 years ago but increased to over 1 million in 2023.

The report highlights that the sector is gaining traction, but with a penetration rate still under 5% of the total pet population, there remains significant room for expansion.