Pulse - October 2024 - 10

U.S. Pet Insurance Market
* $3.91 billion USD - total premium
volume (21.6% increase year-over-year)
* 5,676,776 million - total number of pets
insured (17.1% increase year-over-year)
* $2.48 billion USD - total amount of
claims paid in 2023 (29.8% increase
year-over-year)
* More than a third of U.S. insured pets
reside in California (18.3%), New York
(7.5%) and Florida (6.2%)
* 78.6% of insured pets were dogs versus
21.4% cats
* Average accident and illness premium for
dogs was $675.61 per year or $56.30 per
month
* Average accident and illness premium for
cats was $383.30 per year or $31.94 per
month USD
* The U.S. represents 90% of the total
number of insured pets in North America
A few people formed a Facebook group
to call attention to the cancellations. The
group, called " Dropped by Nationwide Pet
Insurance Whole Wellness? " has numerous
posts from pet owners posting about their
situations. The group, which administrators
explain is " for people who have a Whole
Wellness pet insurance policy or similar
through Nationwide and received a nonrenewal, "
was created on May 2, now has more
than 1,500 members.
Many members post about their anger
over the cancellations, to find solace in the
pain of others and to ask advice. Many say
there are too few good alternatives for pets
that, during their period of coverage, have
developed conditions that are now regarded
by potential insurers as preexisting.
" We will be canceled September 28 and
not offered anything from them as my pup
is 8 yrs old with preexisting conditions that
are not curable! I can't see how a company
can do this to ppl let alone animals, " wrote
one poster.
Another wrote: " I was cancelled and my
Canada Pet
Insurance Market
* $485.5 million CAD - total premium
volume (29.8% increase year-over-year)
* 577,785 - total number of pets insured
(13.6% increase year-over-year)
* $258.2 million CAD - total amount
of claims paid in 2023 (22.8% increase
year-over-year)
* Majority of insured pets reside in Ontario
(37.9%), British Columbia (18.7%) and
Alberta (16.4%)
* 75.5% of insured pets were dogs versus
24.5% cats
* Average accident and illness premium for
dogs was $940.91 per year or $78.41 oer
month CAD
* Average accident and illness premium for
cats was $488.73/year or $40.73/month
CAD
Source: NAPHIA
8 yr old Morkie has pre existing conditions
for ANYTHING in his medical records
going forward--I've spent $1000 in the last
month--new insurance denied all of them! "
Not all posters were writing about being
canceled. Others had concerns about premium
rates going up.
" I just received my renewal notice and
my annual premium went from $1,970
(year 2023) to $4,780 effective on this September
for my 16 years old orange tabby
cat. And I have been with Nationwide for 5
years, it's so ridiculous that's about 240% of
increase!!! " one poster wrote.
Many commenters on these posts told the
posters and others to try other insurers.
The pet insurance marketplace has
grown in size, as have the number of
carriers offering coverage. The list of companies
in the space is too large to list, but
it includes: ASPCA, Embrace, Fetch,
Figo, Healthy Paws, Lemonade, MetLife,
Pets Best, Pet Partners, Pet First Health
Care, Pet Plan Pet Insurance, Prudent Pet,
Pumpkin, Spot, Trupanion, Veterinary Pet
Insurance and Wag. NAPHIA's membership
includes 36 member companies in the
U.S. and nine in Canada.
Demographics
Growth isn't the only change the pet insurance
industry has undergone in recent
years. The demographic of pet insurance
buyers has been shifting recently, according
to Trupanion's Worra.
Previously, empty nesters adopting pets
comprised the lion's share of insureds. They
are still a large part of the insurance-buying
segment, but a youth movement is emerging.
Trupanion is seeing more insurance take-up
from young professionals who are having
fewer children and putting their energy
and money toward their pets and caring for
them.
" We're seeing a bigger and bigger shift
towards younger millennials, elder Gen Z
and everyone in that 25- to 35-year-old age
bracket, " Worra said.
Lemonade, a New York-based provider
of homeowners, renters, auto and pet
insurance, has seen an increased consumer
awareness around the topic of pet insurance,
as well as more technology coming
into the space.
It's not surprising, since Lemonade is a
tech-heavy company, but the majority of
Lemonade's pet insurance buyers are millennials,
according to Sarah Baker, associate
director of pet claims for the company.
" The market is growing and becoming
more competitive, " she said. " Pet parents
have become more educated about insurance
as an option that can help support their pet's
healthcare journey and help them have more
peace of mind should they find that they're
facing an unexpected vet bill. We've also seen
providers place more emphasis on improving
the insurance experience for pet parents
by embracing technology. "
PERCENTAGE INCREASE YEAR OVER YEAR AND COMBINED NUMBER OF PETS (U.S.)
Dogs
Cats
2023
2022
2021
2020
Source: NAPHIA
10
OCTOBER 2024
PULSE
14.8%
+19.7%
+ 26.5%
+ 22.5%
26.2%
+ 32.9%
+ 36.7%
+ 26.7%
Combined
17.1%
+ 22.1%
+ 28.0%
+ 23.2%
Total Pets
5,676,776
4,849,540
3,970,535
3,101,956
Pulse - October 2024

Table of Contents for the Digital Edition of Pulse - October 2024
