Companion Animal Insurance Market Report 2025

The companion animal insurance market size has grown rapidly in recent years. It will grow from $5.62 billion in 2024 to $6.4 billion in 2025 at a compound annual growth rate (CAGR) of 14%. The growth observed during the historic period is driven by increasing pet adoption rates, greater awareness of pet healthcare needs, rising veterinary care costs, an expanding urban middle class with disposable income, and strong emotional attachment motivating spending on pets.

The companion animal insurance market size is expected to see rapid growth in the next few years. It will grow to $10.67 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. The anticipated growth during the forecast period is driven by rising demand for comprehensive pet healthcare coverage, increasing prevalence of chronic and hereditary conditions in pets, the expansion of customizable insurance products for pet owners, growing insurance penetration in emerging markets, and a stronger focus on preventive veterinary care. Key trends expected during this period include improvements in digital claims processing for pet insurance, the emergence of telemedicine services for pets, the integration of wearable health-monitoring devices, the development of specialized insurance plans for exotic pets, and innovations in preventive care coverage options.

The increasing focus on companion animal welfare is expected to fuel growth in the companion animal insurance market. Companion animal welfare encompasses the overall health, comfort, and quality of life of pets, including access to proper nutrition, medical care, and a safe environment. Public concern for animal welfare is rising due to greater awareness of animal sentience and increased sensitivity toward their treatment. Companion animal insurance supports welfare by making veterinary care more affordable and accessible, reducing the likelihood of delayed or forgone treatment. For example, in June 2023, the Royal Society for the Prevention of Cruelty to Animals (RSPCA), a UK-based animal protection organization, reported that 23% of pet owners expressed concern about feeding their animals, up from 19% in 2022. Consequently, growing concern for companion animal welfare is driving the expansion of the companion animal insurance market.

Leading companies in the companion animal insurance market are developing advanced solutions, such as telehealth integration platforms, to enhance pet health monitoring and streamline insurance claims processes. Telehealth platforms allow pet owners to connect virtually with veterinarians and access real-time health data, supporting preventive care and early diagnosis. For example, in January 2024, Petco Health and Wellness Company Inc., a US-based pet care provider, launched a co-branded pet insurance product in partnership with Nationwide Pet Insurance, a US-based pet health insurer. The product offers easy access to veterinary telehealth services, simplified claims submission, and personalized health plans, providing convenient, comprehensive coverage and improved pet health outcomes. This collaboration combines Nationwide’s insurance expertise with Petco’s customer base and veterinary network, integrating insurance with Petco’s services to offer discounts, digital tools, and a seamless online and in-person pet care experience.

In April 2024, Independence Pet Holdings Inc., a US-based company managing a portfolio of pet health brands and services, acquired Pets Best Insurance Services LLC for an undisclosed sum. Through this acquisition, Independence Pet Holdings aims to strengthen its presence in the North American pet insurance market by integrating Pets Best’s digital-first insurance platform and customer base into its portfolio of 15 pet health brands. The move is intended to enhance service continuity, expand coverage options, and accelerate innovation in pet wellness and financial protection. Pets Best Insurance Services LLC, based in the US, specializes in companion animal insurance and offers customizable pet health coverage.

Major players in the companion animal insurance market are State Farm Mutual Automobile Insurance Company, MetLife Pet Insurance, Liberty Mutual Insurance Group, Progressive Corporation, Royal & Sun Alliance Insurance Group, AXIS Capital Holdings Limited, The New India Assurance Company Limited, Trupanion Inc., Bajaj Allianz General Insurance Company Limited, Anicom Holdings Inc., Petsure Pty Ltd., Feather Insurance Services GmbH, ManyPets Limited, Agria Pet Insurance Limited, Prudent Pet Insurance Company, The Kennel Club Insurance, Odie Pet Insurance Company, Lassie AB, Rainwalk Technology Inc., and Everypaw Pet Insurance.

North America was the largest region in the companion animal insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in companion animal insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the companion animal 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.

Companion animal insurance is a type of coverage designed to help pet owners manage veterinary expenses by reimbursing costs related to illness, injury, and preventive care. It offers financial protection and peace of mind by covering unexpected medical bills, ensuring pets receive timely and quality veterinary treatment. This insurance contributes to the health and well-being of companion animals by making veterinary care more accessible and affordable.

The primary coverage options in companion animal insurance include accident and illness, wellness and preventive care, third-party liability only, and senior pet insurance. Accidents refer to unforeseen events causing injury or damage, while illnesses involve conditions affecting health due to disease or infection. Coverage typically spans multiple species, including dogs, cats, birds, fish, and others, and is offered by both public and private providers. Policies are distributed through various channels such as independent agents, direct writers, brokers, online aggregators, and more.

The companion animal insurance market research report is one of a series of new reports that provides companion animal insurance market statistics, including the companion animal insurance industry global market size, regional shares, competitors with the companion animal insurance market share, detailed companion animal insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the companion animal insurance industry. This companion animal 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 companion animal insurance market includes revenues earned by entities through the claims processing, policy administration, risk assessment, telehealth consultation and wellness plan management. 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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