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NAPHIA North American Pet Health Insurance Association

North American pet insurance industry surpasses $3.5 billion

The North American Pet Health Insurance Association (NAPHIA) released its 2023 State of the Industry (SOI) Report showing the North American pet health insurance sector grew by 23.5% in In-Force GWP over 2022.

This year’s SOI Report highlights a number of noteworthy industry milestones, including a record $3.51 billion in total premiums for 2022 (a 23.5% increase from $2.84 billion at YE 2021) and over 5.36 million total pets insured across North America (a 21.7% increase from the 4.4 million total pets insured in 2021).

Rick Faucher, NAPHIA President and CEO/Founder of Toto Pet Insurance, said the positive 2022 results are remarkable considering the growing economic pressures pet owners faced last year, with rising food and energy costs, plus higher mortgage and loan interest rates.

“2022 marked a return to pre-COVID levels of growth for our industry. This steady growth is significant during a period when many North Americans were also forced to make difficult decisions on their household spending,” stated Faucher. “We’re pleased that pet parents continue to recognize the value pet insurance provides, both in mitigating unexpected veterinary costs, as well as providing for their pet’s ongoing healthcare and well-being. It’s the product’s strong value proposition that is driving the significant advances the North American pet insurance industry has experienced over the past five years.”

Kristen Lynch, Executive Director of NAPHIA, added that continued increases in the number of insured pets is evidence of pet owners’ commitment to the health and well-being of their pets.

“We know from various research studies that owners of insured pets are more likely to bring their pets in for regular shots, checkups and emergency treatment, as well as to follow the recommendations of their veterinarian,” said Lynch. “With more than five million pets now insured across North America, it’s clear that more and more pet owners are viewing pet health insurance as an ideal way to ensure their pets are well cared for.”

NAPHIA SOI results show 2022 total premium volume* in the U.S. amounted to $3.22 billion, a 24.2% annual increase over 2021. In Canada, total premium volume* totalled $374.0 million CAD, an increase of 19.3% over the previous year).

“With an estimated three percent of the total potential North American pet health insurance market realized, our industry is very well-positioned for continued success and future growth”, said Faucher.

*As reported by NAPHIA members

Some 2022 Industry Highlights:

NAPHIA’s State of the Industry 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 an estimated 98% of all pet health insurance coverage in effect in North America.

United States

  • $3.218 billion – total premium volume
  • 4,849,540 – total number of pets insured
  • $1.910 billion – total amount of claims paid in 2022
  • Majority of insured pets reside in California (18.6%), New York (7.0%) and Florida (6.2%)
  • 80.1% of insured pets were dogs versus 19.9% cats
  • the average accident and illness premium for dogs was $640.04/year or $53.34/month
  • the average accident and illness premium for cats was $387.01/year or $32.25/month

Canada

  • $374.0 million CAD – total premium volume
  • 508,730 – total number of pets insured
  • $210.3 million CAD – total amount of claims paid in 2022
  • Majority of insured pets reside in Ontario (38.1%), British Columbia (19.5%) and Alberta (17.6%)
  • 76.9% of insured pets were dogs versus 23.1% cats
  • The average accident and illness premium for dogs was $813.98/year or $67.83/month (figures in CAD)
  • The average accident and illness premium for cats was $427.44/year or $35.62/month (figures in CAD)