Pet Insurance Market to Surpass USD 113.7 Billion by 2035, Fueled by Rising Veterinary Costs and Expanding Insurance Penetration – SNS Insider

Global Pet Insurance Market Growth is Driven by Increasing Veterinary Care Inflation, Rising Pet Ownership, and Growing Awareness of Financial Protection for Companion Animals.

Austin, United States, May 15, 2026 (GLOBE NEWSWIRE) -- SNS Insider reported that global Pet Insurance Market size was valued at USD 21.49 billion in 2025 and is expected to reach USD 113.7 billion by 2035, growing at a CAGR of 18.13% from 2026-2035.

Pet insurance market is experiencing substantial growth across the world, attributed to the growing pet population, rising costs of veterinary treatment and increasing trend of consumer spending on pet insurance for better health coverage. Due to advancements in veterinary medicine, especially in areas such as imaging diagnostics, oncology, specialty surgeries, and chronic disease management, expenses related to treatment have skyrocketed, leading to extremely high demand for coverage.

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The U.S. Pet Insurance Market was valued at approximately USD 10.7 billion in 2025 and is expected to reach nearly USD 58.9 billion by 2035, growing at a CAGR of 18.5% from 2026–2035.

The U.S. pet insurance market is characterized by a large pet-owning population, significant spending on a veterinary care, and growing understanding of the need for financial protection against pet healthcare costs, paving way for growth of the insurance industry for pets. Additional renovations in veterinary processes and a strong digital insurance infrastructure support your attention.

The Europe Pet Insurance Market is estimated to be USD 6.87 Billion in 2025 and is projected to reach USD 33.72 Billion by 2035, growing at a CAGR of 17.23% during 2026–2035.

The Europe region held the highest market share, attributed to the high pet insurance penetration rate in the UK, which stood at nearly 30% among dogs, and the pet insurance penetration rate in Nordic nations, which was over 20%.

Rising Veterinary Costs and Employer Benefit Expansion Augment Market Growth Globally

The Pet Insurance Market is characterized by the interaction of rising veterinarian cost inflation, which has resulted in a steady increase of 8 to 12% per year in the price of veterinary treatments, owing to advances in diagnostic imaging, surgical expertise, cancer therapy, and long-term illness treatment. The innovative channel strategy, which focuses on reaching out to the uninsured segment of the market and encouraging them to enroll in pet insurance schemes, is the second critical factor behind the pet insurance market. The development of veterinary specialty treatment, which can be compared in quality to the services provided by medical specialists within the United States, is the driving force behind rising premiums.

Major Pet Insurance Market Companies Listed in the Report are

• Trupanion Inc.
• Nationwide Mutual Insurance Company
• Lemonade Pet Insurance
• Fetch Pet Insurance (formerly Petplan US)
• Agria Pet Insurance (Sweden)
• Petplan (UK/ Allianz )
• Figo Pet Insurance
• ASPCA Pet Health Insurance
• Embrace Pet Insurance
• Hartville Pet Insurance (Crum & Forster)
• Pumpkin Pet Insurance
• ManyPets (Bought by Many)
• Anicom Holdings Inc. (Japan)
• Ipet Insurance Co. Ltd.
• Animal Friends Insurance
• RSA Insurance Group
• Royal & Sun Alliance (Pet Insurance)
• Intact Financial Corporation
• AXA XL (Pet Division)
• Direct Line Group plc

Segmentation Analysis:

By Animal Type

Dogs held the dominant position in the Pet Insurance Market in 2025 due to higher insurance penetration and greater veterinary spending globally. Cats are growing at the fastest CAGR, supported by rising feline adoption rates and improved awareness of cat-specific health risks.

By Sales Channel

Direct sales channel held the dominant position in the Pet Insurance Market in 2025, driven by strong adoption of digital platforms, insurer websites, and mobile applications globally. Bancassurance is growing at the fastest CAGR, supported by expanding partnerships between insurers and banks that leverage trusted banking relationships.

By Coverage

Accident & Illness coverage dominated the Pet Insurance Market in 2025 due to strong demand for comprehensive protection against high-cost veterinary treatments globally. Wellness/Preventive Care is growing at the fastest CAGR driven by rising awareness of preventive healthcare, increasing demand for routine care reimbursement, and insurer strategies globally.

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Pet Insurance Market Key Segments

By Animal

• Dogs
• Cats
• Others

By Coverage

• Accident only
• Accident & Illness
• Wellness/Preventive Care
• Others

By Sales Channel

• Agency
• Bancassurance
• Broker
• Direct
• Others

Regional Insights:

With a 41% market share, Europe has been the most dominating region in the Pet Insurance Market in 2025, due to the almost 30% penetration rate in dog insurance in the UK and the above 20% presence of pet insurance in the Nordics. The regulatory environment of the European countries, with special focus on the role played by the FCA of the UK in ensuring high standards for pet insurance, makes the European market superior to other regions in this regard.

The Asia Pacific region represents the fastest-growing regional pet insurance market due to Japan’s mature market for pet insurance, where Anicom Holdings and Ipet Insurance maintain dog insurance penetrations of more than 20% in urban Japan, where the cost for pet-related services per pet almost matches European prices, as well as the development of the companion animal industry in China, which sees rising pet insurance use by its middle-class population, and pet insurance awareness in South Korea.

Recent Developments:

• 2026: Nationwide Pet Insurance launched its Whole Pet with Wellness 3.0 policy  integrating AI-powered instant claims processing completing reimbursement within 2 hours of invoice submission, coverage for behavioral modification therapy as a covered illness benefit, and a genetic screening benefit covering breed-specific health risk testing achieving the lowest claims-to-payment latency of any U.S. pet insurer and reporting 43% improvement in policyholder retention versus previous-generation policy whose manual claims processing averaged 14 days to reimbursement.
• 2025: Lemonade Pet expanded its dog and cat insurance to cover 36 countries making it the first digitally native pet insurance provider with genuinely international coverage enabling policyholders to maintain coverage during international relocation without policy cancellation and requalification that traditional insurers require when policyholders move between countries, addressing the expatriate and internationally mobile professional segment whose pet ownership and high veterinary care standards create above-average premium willingness-to-pay.

Exclusive Sections of the Report (The USPs):

• PRODUCT TYPE & COVERAGE STRUCTURE METRICS – helps you understand adoption trends for accident-only and accident & illness coverage plans, wellness add-ons, lifetime vs annual policies, reimbursement models, breed-specific insurance plans, and multi-pet policy bundling trends.
• PREMIUM & PRICING METRICS – helps you evaluate average monthly premiums by pet type and breed, age-based premium escalation, deductible impact on policy adoption, regional pricing differences, inflation-linked veterinary cost adjustments, and bundled pricing strategies.
• CLAIM MANAGEMENT & REIMBURSEMENT METRICS – helps you analyze claim approval efficiency, payout processing timelines, annual claim frequency per insured pet, reimbursement performance, digital claims automation adoption, and fraud detection effectiveness.
• PET HEALTHCARE & VETERINARY COST MANAGEMENT METRICS – helps you assess the impact of rising veterinary expenses, preventive healthcare coverage trends, treatment affordability improvements, and policyholder out-of-pocket cost reduction strategies.
• DIGITAL INSURANCE & CUSTOMER EXPERIENCE METRICS – helps you identify advancements in digital policy management, AI-driven claim processing, mobile-based insurance platforms, customer retention strategies, and personalized pet insurance solutions.

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Pet Insurance Market Report Scope

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