PUBLISHER: Grand View Research | PRODUCT CODE: 1908769
PUBLISHER: Grand View Research | PRODUCT CODE: 1908769
The global pet insurance market size was estimated at USD 21.84 billion in 2025 and is projected to reach USD 79.61 billion by 2033, growing at a CAGR of 17.53% from 2026 to 2033. The growing pet population, the adoption of insurance in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, rising penetration of Insurtech, and humanization of pets are some of the critical drivers of this market.
According to the most recent data from NAPHIA's 2024 State of the Industry (SOI) report, 6.25 million pets are insured in North America at the moment. Compared to 2022, when there were 5.36 million pets insured in the region, this indicates a 16.6% growth. The market for pet insurance is anticipated to grow as a result of the rising prevalence of diseases in dogs and cats, as well as the growing trend of pet adoption. The industry is growing because insurance has emerged as a vital tool for pet owners to manage the costs of serious medical conditions like cancer, chronic illnesses, and unintentional injuries. Since treatments often require substantial capital investments, specialized staff, and cutting-edge diagnostic technology, which increases costs for pet owners, the rise in demand for veterinary healthcare facilities further encourages adoption.
The rise in pet adoption, particularly during the COVID-19 pandemic, played a catalytic role in reshaping the market. A survey by Petplan in the UK revealed that nearly 26% of owners welcomed a new pet during lockdowns, with companionship and work-from-home flexibility cited as major reasons. This surge in pet ownership translated into stronger demand for financial protection, with about one-fifth of new owners considering insurance policies. Companies like Animal Friends Insurance have also innovated by offering coverage for remote veterinary consultations, reflecting the trend of digital healthcare integration in the pet sector.
The sector is also being shaped by new trends that are specific to each country. The majority of insurance claims in Australia are for "designer dogs," according to data from April 2025. This suggests that there is an increasing need for plans that cover health risks specific to certain breeds and genetics. According to data from June 2025, the total number of pet owners in South Korea rose to over 15 million, indicating a sizable untapped insurance market. Long-term market potential is further stimulated by expanding urbanization and pet humanization. Another changing aspect is regulatory scrutiny. The Australian Securities and Investments Commission (ASIC), aiming to investigate consumer protection and compliance practices, temporarily halted pet insurance plans from well-known companies, such as Medibank and Woolworths, in 2023. These instances highlight the importance of transparent product design and a reasonable price in maintaining consumer trust.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global pet insurance market report based on coverage, animal, sales channel, and region.