Data Shows Pet Insurance Hits New High in Popularity
The State of the Industry (SOI) report, which is presented annually by the North American Pet Health Insurance Association (NAPHIA), provides industry statistics to policy authors, salespeople, and holders regarding current market trends. Through thorough research and benchmarking, the yearly SOI survey supports NAPHIA’s purpose.
The 2022 State of the Industry study provides an insightful, behind-the-scenes glimpse into a sector that has had explosive development over the past ten years, and this year’s data indicates that the exciting expansion is still going strong. A few quick highlights are:
By the end of 2021, the worldwide pet insurance industry was valued at over $2.83 billion, and by 2030, it is expected to grow to $32.7 billion.
The market has more than doubled in size in the last four years.
NAPHIA State of the Industry (2022) Survey Underwriters, providers, carriers, administrators, veterinary practice organizations, industry partners, and others are among the members of NAPHIA, which has members in the US and Canada. Data for a survey that evaluates and compares the present status of the pet insurance market is requested from NAPHIA members annually.
The US Pet Insurance Industry’s Ascent
Based on data from the SOI survey respondents, who make up 99% of all policies sold in North America, we know that the pet insurance market increased in size between 2018 and 2021. Nonetheless, just around two to three percent of Americans have pet insurance.
This may cause you to question if the NAPHIA data truly depicts the public interest trend in pet insurance. Has the popularity of pet insurance among Americans really increased?
The answer is yes, as evidenced by Google Trends data for the previous five years, which shows that the frequency of searches for information about pet insurance has increased over that time. Indeed, between June 19 and June 25, 2022, Google searches for the phrase “pet insurance” peaked in popularity among US internet users, trending with an all-time high score of 100.3. Searches for “pet insurance” only earned an index score of 49 in January 2018, indicating that the issue was less than half as popular at the time.
Who in America had the first pet insurance policy?
Lassie, the well-known TV Border Collie, became the first pet insured in the United States in 1982, marking the introduction of pet insurance to the country.4. Veterinary Pet Insurance (VPI) issued the policy.
Other pet insurance providers then joined the market. Originally limited to dogs and cats, insurance quickly grew to include a wide range of animals, including fish, birds, hamsters, and more.
Although the product itself has been available for much longer, pet health insurance has been growing significantly since 2016. In the 1890s, Claes Virgin wrote the first animal insurance policy, which provided covered protection for cattle and horses. A dog in Sweden became the first tiny pet to be insured in 1924, a few decades later, and another policy was quickly issued in Britain. These two nations still hold the top spot in terms of market penetration worldwide.
The typical price of dog insurance dropped.
The average yearly rate for dog insurance dropped, but the cost of cat pet insurance premiums increased little. More consumers profited from this pet insurance trend since dogs make up a higher portion of the market.
An Accident & Illness coverage for a dog typically costs $48.66 a month, or $583.91 annually. By contrast, the average monthly premium for a cat’s Accident & Illness coverage is $28.57, or $342.84 annually.