North American pet insurance hit 7.6 million covered animals in 2025, with the US posting 9% year-over-year growth and Canada recording 3.9%. The data comes from the North American Pet Health Insurance Association's (NAPHIA) 2026 State of the Industry Report.
The headline numbers mask a significant coverage shortfall. In the US, just 4.27% of pets hold insurance policies. Dogs are more likely to be covered than cats: 5.99% of dogs carry policies compared to 2.29% of cats. Canada's gap is wider, at 3.72% overall, 5.64% for dogs and 1.91% for cats.
The policy count growth arrived alongside a sharper rise in premium volume. NAPHIA reported gross written premium for US pet insurance climbed 20.8% to $5.2 billion. Premium growth outpaced the increase in policy count, a sign of higher average premiums and rate actions across the market. Florida cleared 12 pet insurance rate hikes averaging 9.25% in late 2025, with one carrier receiving approval for a 26% overall increase.
The uninsured 95% of US pets represents a gap with financial consequences. Pet ownership reached 95 million US households in 2025. Americans are projected to spend $165 billion on pet care in 2026, according to the American Pet Products Association. Triple-I reported insurers paid $1.86 billion for dog-related injury claims in 2025, at an average cost of $65,450.
The report identifies the most common claim drivers for insured pets in 2025. For dogs, the top conditions were gastrointestinal issues, ear infections, skin conditions, anxiety and behavioral issues, and allergies. For cats, the leading claims involved GI issues, dental disease, urinary tract infections, anxiety and behavioral issues, and respiratory issues.
Sammi-Jo Nevin, president of NAPHIA, said the industry's growth signals both progress and the scale of the remaining opportunity. She noted that everyday conditions drive the bulk of claims activity.
"While headline-making emergencies occur, our data shows it's the common issues like ear infections and skin conditions that make coverage so essential," Nevin said.
The penetration gap persists partly because the underwriting environment has tightened. Nationwide non-renewed around 100,000 policies in 2024 and ManyPets exited the US market in late 2024, as loss-cost inflation squeezed margins. JAB Holdings' US direct premiums rose 79.9% year-on-year in 2025, a sign that growth is concentrating among a smaller number of committed players.
