Pet Critical Illness Insurance Market Report 2025

The pet critical illness insurance market size has grown rapidly in recent years. It will grow from $2.65 billion in 2024 to $2.98 billion in 2025 at a compound annual growth rate (CAGR) of 12.4%. The growth during the historic period is attributed to rising pet ownership, increased awareness of pet health, escalating veterinary treatment costs, greater humanization of pets, and a growing demand for pet insurance.

The pet critical illness insurance market size is expected to see rapid growth in the next few years. It will grow to $4.71 billion in 2029 at a compound annual growth rate (CAGR) of 12.1%. In the forecast period, growth is expected to be driven by the rising incidence of chronic diseases in pets, increased adoption of premium pet insurance plans, wider availability of advanced veterinary care, expansion of digital insurance platforms, and a stronger focus on pet wellness and preventive care. Key trends anticipated include advancements in telemedicine for pets, innovations in personalized insurance plans, AI integration for claims processing, progress in wearable health monitoring devices, and new multi-pet insurance package offerings.

The growth of the pet critical illness insurance market is expected to be driven by rising pet ownership. Pet ownership involves the responsibility and care for animals as companions, including providing food and shelter. This increase is fueled by the deepening emotional bond people share with their pets, seeking companionship and stress relief in daily life. Pet critical illness insurance supports pet ownership by providing financial coverage for serious health issues, helping manage unexpected veterinary expenses. It alleviates both emotional and financial burdens by enabling timely access to advanced medical care, thus improving pet well-being. For example, according to the American Pet Products Association, a U.S.-based non-profit trade group, 86.9 million U.S. households owned a pet in 2023-2024 - accounting for 66% of households, up from 62% in 2022. Consequently, the rising rate of pet ownership is driving growth in the pet critical illness insurance market.

Leading companies in the pet critical illness insurance market are developing innovative insurance products, such as comprehensive critical illness coverage, to offer financial protection, enhance pet healthcare access, and lower out-of-pocket costs for pet owners. Such coverage reimburses veterinary expenses related to serious conditions such as cancer, kidney disease, and heart failure, ensuring pets receive prompt medical attention. For instance, in July 2024, OneDegree, an InsurTech firm based in Hong Kong, introduced the first critical illness coverage for pets through a supplementary rider to its Pet CEO Plan. This policy covers over 20 severe conditions and provides a one-time lump sum payout of $1,280 (HK$10,000) upon initial diagnosis of specified illnesses such as epilepsy, quadriplegia, and patellar dislocation, offering financial support for veterinary care. The plan also features direct vet billing and no lifetime claim limits, streamlining the claims process and ensuring ongoing coverage for chronic ailments. This innovation responds to growing demand for pet health insurance in Asia, giving pet owners greater peace of mind.

In November 2023, JAB Holding Company, an investment firm based in Luxembourg, acquired Embrace Pet Insurance Agency LLC for $1.5 billion. This acquisition strengthens JAB’s global footprint in pet insurance, bolstering its position in pet health services and supporting its strategy to expand innovative offerings such as critical illness coverage. Embrace Pet Insurance Agency LLC, based in the U.S., specializes in coverage for critical pet illnesses.

Major players in the pet critical illness insurance market are MetLife Inc., MS&AD Insurance Group Holdings Inc., Aviva plc, Synchrony Financial Inc., Crum & Forster Pet Insurance Group, Trupanion Inc., Tesco Personal Finance plc, Bupa Australia Pty Ltd, Sainsbury’s Bank plc, Nationwide Mutual Insurance Company, ManyPets Limited, American Society for the Prevention of Cruelty to Animals (ASPCA) Pet Health Insurance, Healthy Paws Pet Insurance LLC, Figo Pet Insurance LLC, JAB Holding Company S.à r.l., 24Petprotect, Vetsure Pet Insurance Limited, Bow Wow Meow Pty Ltd, John Lewis Financial Services Limited, Pinnacle Pet Group Limited.

North America was the largest region in the pet critical illness insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pet critical illness insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the pet critical illness insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Pet critical illness insurance is a specialized policy that offers financial protection for the diagnosis and treatment of serious health conditions in pets. It assists pet owners in managing the high veterinary costs associated with life-threatening illnesses. This insurance reduces the financial strain of major veterinary expenses and helps ensure timely, quality care for pets facing critical health issues.

The primary types of coverage in pet critical illness insurance include comprehensive coverage, accident-only coverage, illness-specific coverage, lifetime benefit coverage, and time-limited benefit coverage. Comprehensive coverage protects against a broad range of health problems, including diagnostics, surgeries, medications, chronic conditions, and specialist treatments. It covers various pets such as dogs, cats, exotic animals, small mammals, and birds. Payment options include monthly and annual plans, prepaid or one-time payments, shared cost arrangements, and flexible deductibles. This insurance is available through both online and offline channels, catering to individual pet owners as well as commercial customers.

The pet critical illness insurance market research report is one of a series of new reports that provides pet critical illness insurance market statistics, including the pet critical illness insurance industry global market size, regional shares, competitors with the pet critical illness insurance market share, detailed pet critical illness insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the pet critical illness insurance industry. This pet critical illness insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The pet critical illness insurance market includes revenues earned by entities through underwriting insurance policies, offering veterinary consultation support, providing diagnostic and treatment cost coverage, and delivering customer assistance for policyholders. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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