While pet insurance is not new, recent years have shown increase in popularity and growth.  The North America Pet Health Insurance Association (NAPHIA) reports that approximately 3.45 million pets were insured throughout the United States at the end of 2020, and pet insurance has increased at an average annual growth rate of 23.4% over the last five years. The 2020 numbers are 23.2% higher than in 2019, leading the pet insurance industry to surpass $2.17 billion in premiums paid. In Canada, pet insurers reportedly sold $244.6 million in premiums, a 17.2% increase since 2019. In the U.K., Bought By Many, a London-based pet insurance provider, increased its cat and dog policies sales by more than 150% over the last year. As the types of insurance products offered continue to diversify, there is little surprise that pet insurance is among those lines of insurance forecasted to steadily increase over the next few years—especially considering that approximately 85 million people in this country own at least one pet. And as pet ownership continues to rise—coupled with an increasing American mindset that "pets are family," the street for the industry's growth is already paved.

COVID-19 Led to Increased Pet Insurance Sales

The COVID-19 pandemic changed pet ownership in the United States. When the first stay-at-home orders came down, families had more time to spend at home and dedicate to a pet.  Shelters, nonprofit rescues, private breeders, and pet stores have reported higher demand for pet ownership than the number of pets to fill it. Not surprisingly, new pet ownership also brought higher veterinary costs and sales of other pet goods and services.