Pet Health Insurance — Growing Rapidly

AM Best says pet health insurance is one of the fastest-growing property and casualty insurance lines. It has averaged 20% per year increases since 2020. Another group, the North American Pet Health Association claims total direct written premium has doubled since 2021.

Christopher Graham, an AM Best senior industry research analyst, said the first quarter of 2026, total direct written premium was up 17% when compared to the first quarter of 2025.

"In the post-COVID world, the U.S. population has developed even deeper bonds with their pets because of the increased time spent together,” Graham said. "Pet health care services being sought now regularly encompass more than standard medical emergencies and also include pet owners being more willing to invest in behavioral support for sick or injured pets.”

Another interesting factoid. The top 10 pet insurers have close to 98% of the total premiums. The largest of the group — Trupanion — has over 20% of the market.

The net combined ratio was under the break even point in both 2024 and 2025. Net loss ratios averaged 69.1%. Loss claims are settled quickly with most being done within a year and 99% after two years.

Source link: PropertyCasualty360.com — https://bit.ly/4xrkqVo