Pet Insurance Market Growth: What NAPHIA's Data Shows

Pet insurance has quietly become one of the fastest-growing lines of coverage in North America, and the industry now has its clearest picture yet of where the market stands. The North American Pet Health Insurance Association's 2026 State of the Industry report, released in June, pairs another year of strong premium growth with a stubborn gap: most American pets still have no coverage at all.

The headline numbers from the 2026 report

NAPHIA compiles its figures from roughly 30 carriers, which the association estimates account for about 99 percent of written pet health insurance premium in the United States and Canada. That breadth makes the report the closest thing the young industry has to a census. ^[1]

NAPHIA reports 7.6 million insured North American pets at the end of 2025, up 8.5 percent from 7.03 million in 2024. These are regional totals, not US-only figures. Keeping that geography explicit prevents comparisons with a US ownership estimate from producing a misleading coverage rate.

The association reports about $6.2 billion in North American gross written premium and 19.4 percent premium growth from 2024 to 2025. Premium volume is the amount written for coverage; it is not the same as claims paid, company profit or the amount every household pays.

Premium growth is outpacing enrollment

The most consequential finding may be the gap between the two growth rates. Premium expanded roughly twice as fast as the insured pet count in 2025, implying average premium increases of roughly 10 percent per pet before any change in coverage mix. Policies are becoming more expensive even as more owners buy them.

Veterinary prices are one possible influence on insurance costs, but these aggregate figures do not identify the cause of each renewal increase. Changes in policy benefits, insured animals, location and coverage mix also matter. A causal explanation needs more evidence than a comparison of two industry growth rates.

To understand a quote, compare the covered conditions, reimbursement method, deductible and annual or lifetime limits. Request an example using the same hypothetical bill for each policy. A premium comparison is incomplete if one quote covers illness and accidents while another covers accidents only.

The penetration problem

A penetration percentage depends on both the insured count and an estimate of the total animal population. Check geography, year, species and methods before comparing rates. The regional enrollment total alone cannot establish a precise US uninsured percentage.

An owner's decision should use the individual animal's circumstances rather than an assumed generational buying pattern. Ask how age, location and health history affect eligibility and price. The fact that a product is growing in popularity does not show that its benefits fit a particular household.

International comparisons also require similar policy and animal-population definitions. A country with a different veterinary payment system or coverage mix is not automatically a forecast of US adoption. Treat comparisons as context unless the underlying methods and dates are available.

What the claims data reveals

A list of common claims should not be mistaken for a list of conditions every policy covers. Check exclusions for dental treatment, behavior, preventive services and inherited conditions explicitly. Read the sample wording before purchase and ask how a related condition would be treated after a previous symptom appears in the record.

The heavy tail

Large bills are one reason owners consider insurance, but an exceptional claim is not an estimate of what most owners will spend or recover. A published claim also says little about another product's limit or exclusions. Use your policy's terms to calculate the out-of-pocket share of a plausible bill.

Ask whether the insurer pays the clinic directly or reimburses the owner after payment. Those arrangements affect the cash needed when treatment starts. Also confirm claim deadlines, required records and how an appeal works. Insurance can shift financial risk without eliminating the need for accessible funds.

A market consolidating under rate pressure

For a renewal, compare the new schedule with the previous one before assuming only price changed. Check whether benefits, deductibles or limits have changed and whether moving to a new insurer could affect treatment of earlier symptoms. Cancelling a policy before examining replacement terms can create an avoidable gap.

The NAIC pet insurance model act addresses matters including disclosures, waiting periods, pre-existing conditions and wellness programs. A model act is a legislative template, not automatically the law in every state. Check the state insurance department for the rules that apply to the policy being offered. ^[2]

What the road ahead looks like

A household comparing insurance with a savings reserve should consider what it could pay during the early months, before a reserve has accumulated. Savings remain available for exclusions; a policy may share an eligible large cost subject to its terms. Neither option can be evaluated honestly with a single unsupported lifetime-cost figure.

The verified report shows enrollment and premium growth for a defined period. It does not guarantee future affordability or enrollment. For buyers, the useful next step is a written comparison of eligibility, exclusions, limits and payment mechanics, with any ambiguous answer confirmed by the insurer before purchase.