The love and companionship that pets share with us makes them far more than animal companions – they’re a part of the family. And much like any treasured family member, their health and well-being are a top priority. This has led to significant rises in the value of the pet insurance market all over the globe.
We put together this blog to take a deeper dive into some eye-opening pet insurance statistics from around the world that demonstrate just how much steam this market has gained and why pet parents and guardians are choosing pet insurance to protect their pets from unexpected veterinary costs.
A Historical Context
Pet insurance has actually been around for a fairly long time. Oddly enough, it has existed outside the U.S. since the early 1900s, but North American pet owners had to wait for some time before pet insurance policies started being offered. The U.S. ventured into this domain in 1982 with the now famous Lassie pet insurance case, an instance in which the iconic TV collie was granted the first policy in America.
The structure of pet insurance policies closely mirrors that of human health insurance, covering a portion of the costs for eligible health issues. Customers have the flexibility to select from diverse levels of coverage, varying in price and nature, with a majority of pet insurance companies primarily focusing on accident-and-illness policies.
Global Pet Insurance Statistics
The global pet insurance market currently boasts a massive value of over 9 billion USD, with projections estimating its worth to reach $15.3 billion by 2030. While still fairly new in comparison to the ownership of pets, it’s becoming more and more essential to many pet owners every single day. When we perform a pet insurance comparison on a global scale, various interesting conclusions can be made. For example, Europe emerges as the primary market (currently), accounting for a staggering 44% of the total revenue.
American Pet Insurance Statistics
In the US, pet insurance market alone, 5.36 million pets are insured by their owners, in comparison to over 86.9 million pet-owning households across the country. However, it’s abundantly clear that the region's pet insurance sector is experiencing strong growth, generally expanding by over 20% annually. The U.S. pet insurance market stands tall, valued at an amazing $3.2 billion as of 2022. However, it’s important to note that states like California, New York, and Florida comprise over 30% of all enrolled pets.
Over 80% of Americans consider pets to be family members, while the number of insured pets does not currently reflect this.
In the US, the average monthly costs for pet insurance are as follows:
- Accident-and-illness cover for dogs: $53.34 USD
- Accident-and-illness cover for cats: $32.25 USD
Canadian Pet Insurance Statistics
In 2022, Canada's pet insurance market reached $375 million CAD, which is high considering Canada’s population size. Three provinces — Ontario, British Columbia, and Alberta — dominate the pet insurance sector, representing over 75% of all insured pets in the country.
In Canada, the average monthly costs for pet insurance are as follows:
- Accident-and-illness cover for dogs: $67.83 CAD
- Accident-and-illness cover for cats: $35.62 CAD
European Pet Insurance Statistics
In Europe, the pet insurance market is poised for significant growth, with projections suggesting an increase from USD 3.10 billion in 2023 to USD 4.85 billion by 2028. The continent boasts approximately 89 million households that own pets, encompassing an impressive 103.8 million cats and 85.2 million dogs. In fact, studies reveal that a massive 35% of European homes are pet owners – meaning there are plenty of furry friends across the continent.
Pet Medical Risks
According to actual claims data, a startling fact to consider is that the average pet encounters over 25 unique accidents and illnesses in its lifespan, with the probability of a pet falling ill nine times higher than the likelihood of them meeting with an accident. This makes pet insurance less of a luxury product and more of a necessity for responsible pet owners.
Around 80% of pet insurance policies are for dogs, but a shift in trends reveals that cat insurance policies are gaining momentum faster than their canine counterparts.
Pet Insurance Statistics in Other Countries
Looking out to the UK and Australia, there are some other revealing statistics to analyze.
United Kingdom:
- 57% of consumers in the UK are pet owners, indicating a deep connection with animals in the country.
- 3.7m people in the UK carry pet insurance and in total there are 4.3m pets covered with a pet insurance policy in the UK with the majority being dogs and cats.
- Pet insurance is growing at approx 5% per year in the UK and over 1m claims are processed each year.
- 20% of UK pet insurance purchasers are considering a switch to more affordable policies within the upcoming year.
Australia:
- Australians LOVE animals, with 67% of the population residing in households with at least one pet.
- Only 7% of Australian pets are backed by insurance, indicating a vast potential market to be tapped into.
- Aussies, on average, allocate around $600 annually for veterinary care.
- Australians typically spend AUD $30.83 monthly for insuring cats, whereas dogs come at a slightly steeper price of AUD $68.41 monthly.
- Individuals with an annual income over AUD $200k are four times as likely to invest in pet insurance compared to the nation's average.
Final Thoughts
In an era where pets are rightfully treated as family rather than property, insurance is an important aspect of overall pet care. However, it seems that in North America and Canada, there are higher concentrations of policies per capita in larger cities. In Australia, pet insurance isn’t common, despite the average owner dedicating a fair amount towards veterinary costs.
With medical expenses on the rise, it's never the wrong time to consider your first pet insurance policy. For more on the benefits of pet insurance and how it can help you and your pet, check out our blog today.
