Industry experienced a ~22% year-over-year revenue increase while surpassing the $4 billion mark for the first time
PHOENIX, April 10, 2024 /PRNewswire/ – The North American Pet Health Insurance Association (NAPHIA) today released its 2024 State of the Industry (SOI) Report showing the North American pet health insurance sector grew another 21.9% in 2023.
This year’s SOI Report indicated, for the first time, the North American pet insurance industry had exceeded the $4 billion mark, with a record-setting $4.27 billion USD in total premiums sold in 2023 (a 21.9% increase from $3.5 billion USD in 2022) and over 6.25 million pets insured across North America (a 20.9% increase from the 5.17 million pets insured in 2022).
In the United States (US), total premium volume* totalled $3.91 billion USD, a 21.6% annual increase over 2022. With an estimated 154 million pets in the US, and an average penetration rate of 3.69% (5.07% for dogs and 1.84% for cats), Rick Faucher, NAPHIA President and Chief Partnerships Officer with Fetch Pet Insurance, expressed his optimism for the industry’s continued long-term growth.
“For the fifth year in a row, the US market grew by over 20 percent,” said Faucher. “With rising penetrations rate for dogs and cats in the US and the potential for future, sustained growth, we see a tremendous upside for the industry and are very encouraged about the future.”
NAPHIA Executive Director Kristen Lynch noted the 25.9% average growth rate in the U.S. market over past five years demonstrates that US pet owners understand the value of pet insurance and experience its impact in mitigating unexpected veterinary costs.
“At a time when households are experiencing growing financial pressures, pet insurance provides owners with financial protection to cover the rising costs of veterinary care,” said Lynch. “Our industry’s strong growth is evidence that American pet families recognize the value of pet health insurance coverage and appreciate the certainty it offers in those instances when their pet has an unexpected illness or injury.”
The SOI Report is published annually to provide NAPHIA members, industry regulators, media, and other interested parties with key benchmarks on the updated status of the North American pet insurance industry.
* As reported by NAPHIA members
Some Industry Highlights:
NAPHIA’s State of the Industry (SOI) Report has been published using data compiled, aggregated and validated by the global multinational risk management and advisory firm Willis Towers Watson. NAPHIA members and SOI participants represent 99% of all pet health insurance coverage in effect in North America.
To view the results and download the full report, please visit: https://naphia.org/industry-data/
United States
- $3.91 billion USD – total premium volume (21.6% YoY)
- 5,676,776 million – total number of pets insured (17.1% increase YoY)
- $2.48 billion USD – total amount of claims paid in 2023 (29.8% increase YoY)
- More than a third of U.S. insured pets reside in California (18.3%), New York (7.5%) and Florida (6.2%)
- 78.6% of insured U.S. pets were dogs versus 21.4% cats
- Average accident and illness premium for dogs was $675.61/year or $56.30/month USD
- Average accident and illness premium for cats was $383.30/year or $31.94/month USD
- The US represents ~90% of the total number of insured pets in North America.
Canada
- $485.5 million CAD – total premium volume (29.8% increase YoY)
- 577,785 – total number of pets insured (13.6% increase YoY)
- $258.2 million CAD – total amount of claims paid in 2023 (22.8% increase YoY)
- Majority of insured pets reside in Ontario (37.9%), British Columbia (18.7%) and Alberta (16.4%)
- 75.5% of insured Canadian pets were dogs versus 24.5% cats
- Average accident and illness premium for dogs was $940.91/year or $78.41/month CAD
- Average accident and illness premium for cats was $488.73/year or $40.73/month CAD
- Canada represents ~10% of the total number of insured pets in North America.
About NAPHIA
The North American Pet Health Insurance Association (NAPHIA) is comprised of reputable pet health insurance organizations from across the United States and Canada. As the industry’s trade association, NAPHIA works to advance and grow the pet insurance industry and marketplace through proactive research, data sharing, benchmarking initiatives, advocacy efforts, strategic partnerships, resource sharing and the dissemination of information to collaboratively address challenges and opportunities.
View original content to download multimedia: https://www.prnewswire.com/news-releases/north-american-pet-health-insurance-industry-continued-exceptional-growth-rate-in-2023-302112235.html
SOURCE NAPHIA – The North American Pet Health Insurance Association
Copyright © 2024 PR Newswire Association LLC. All Rights Reserved.
