The Insurance Information Institute announced on May 12 that the pet insurance market in the United States continues to grow, with more households owning pets and spending on pet care projected to rise in 2026. The American Pet Products Association reports that pet ownership has steadily increased, while expenditures on pet care have also seen consistent growth since 2018.
The expansion of pet ownership brings new risks for owners, including unexpected veterinary costs and liability concerns. The Insurance Information Institute’s latest report outlines steps for keeping pets safe and healthy. “Triple-I’s latest identifies steps pet owners can take to keep their pets safe and healthy, which a growing market of property/casualty and specialty insurers are helping facilitate through pet insurance,” the organization said.
According to analysis from S&P Global Market Intelligence data cited by the Insurance Information Institute, the U.S. pet insurance sector has grown by more than 10 percent annually since 2018. Direct premiums written reached $5.47 billion last year, with most large insurers experiencing double-digit premium growth in 2025. However, fewer than half of North American pets are insured according to the North American Pet Health Insurance Association—a sign that many owners may not be aware of available coverage options or their potential long-term value.
Pet insurance policies generally cover accidents or both accidents and illnesses such as infections or cancer. Many plans include coverage for hereditary conditions if specified in active policies; pricing is based on factors like age, gender, and breed. Most providers exclude pre-existing conditions but may reconsider them if curable after a symptom-free period between six months to one year.
Unlike other types of coverage where direct billing is common, most pet insurance works via reimbursement: policyholders pay upfront for services then submit claims for partial or full repayment from their insurer. The American Veterinary Medical Association notes that veterinary costs can add up over a pet’s lifetime; having insurance can help manage these expenses as animals age.
As options expand and products become more flexible, it is important for consumers to compare policies carefully before purchasing coverage—especially regarding reimbursement terms and exclusions—and consider consulting an insurance professional about what best suits their needs.
The Insurance Information Institute supports stakeholders including consumers, media and policymakers by providing resources in English and Spanish; it represents over 50 member companies ranging from regional carriers to global firms; it established ties with The Institutes in November 2020; its website ranks as a leading online source for information about risk management; it hosts events aimed at advancing understanding within the industry—all according to its official website.
