Pet ownership is on the rise. Two in 3 U.S. households have at least one pet, according to Morgan Stanley Research, and there are now more households with pets than children, according to analysis from the National Association of Realtors.

Many fur babies are considered family members and beloved companions, and they are treated as such. Pet industry spending—from food to toys to veterinary bills—has seen tremendous growth in recent years and is expected to climb from $118 billion in 2019 to $275 billion by 2030. 

The pandemic-driven pet boom has also led to nearly 23% growth in insured pets since 2020, according to the North American Pet Health Insurance Association (NAPHIA), making pet insurance one of, if not the, fastest-growing property & casualty line, often with double-digit growth.

While pet insurance has been available in the U.S. for several decades, it was often a niche coverage offered by a few specialty carriers. Today, the marketplace is growing with dozens of companies now offering coverage, including major carriers who are underwriting their own products.

Pet Protection and Peace of Mind

With veterinary bills rising, pet insurance is essential to help owners manage costs and avoid major out-of-pocket emergency expenses.

Just like other kinds of insurance, pet coverage comes in a variety of forms with most carriers commonly offering one or more of the following:

• Accidents, such as fractures, cuts and burns.
• Illness, including cancer, influenza and kennel cough.
• Wellness, including preventive care services, prescription medications and vaccinations.

In addition to cushioning pet care costs, insurance also provides owners comfort knowing their pet is protected when and if the unexpected happens.

Unleash Growth Opportunities

In 2023, the total premium volume of pet insurance in the U.S. reached $3.9 billion, according to NAPHIA. However, despite its growth, this is still an untapped market because most pet owners do not have insurance.

So, what can insuring pets do for your business?

Pet insurance provides a new product and revenue stream. You can bundle and cross-sell it as an added value to your existing, pet-owning customers, and use it to draw new customers to your business.

A driving force behind the recent growth in pet ownership and spending is younger adults, aged 18-34, who often have more discretionary income and are more likely to spend big on their pets. Providing pet insurance is an opportunity to capture these new, younger, pet-loving customers, who will have additional insurance needs—such as auto, home or umbrella—as they grow older.

How to Talk About Pet Insurance

Most pet owners love to talk about their furry friends and will light up when asked about them. Simply asking prospects if they have pets will likely get them talking, they'll probably show you photos, too!

Once they're engaged, ask if they're feeling the pinch of high veterinary costs and if they're prepared in case their pet needs emergency care or is diagnosed with a serious illness. Based on their answers, you can suggest coverages to meet their needs.

Taking the time to get to know what your customers care about and how you can help them protect it delivers incredible value and can lead to a long-lasting customer relationship.