Pet Critical Illness Insurance Market Report 2026

The pet critical illness insurance market size has grown rapidly in recent years. It will grow from $2.98 billion in 2025 to $3.35 billion in 2026 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period can be attributed to increasing incidence of critical pet illnesses, rising cost of advanced veterinary treatments, growing awareness of pet health risks, expansion of specialty veterinary services, increased spending on pet healthcare.

The pet critical illness insurance market size is expected to see rapid growth in the next few years. It will grow to $5.26 billion in 2030 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to increasing demand for comprehensive critical illness coverage, rising adoption of digital claims platforms, expansion of genetic and diagnostic testing coverage, growing focus on preventive healthcare, increasing customization of insurance benefits. Major trends in the forecast period include increasing adoption of illness-specific pet coverage, rising demand for high-cost treatment protection, growing use of digital policy management tools, expansion of multi-pet insurance plans, enhanced focus on early diagnosis coverage.

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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the pet critical illness insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pet critical illness insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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