U.S. Pet Insurance Market Rises To 2 Billion In 2020
U.S. pet owners set an all-time high in 2020 spending $ 1.99 billion on pet health insurance, which is a 27.5% year-over-year increase.
The number of insured animals reached a record high of over 3.1 million; of these, 83% were dogs and 17% cats. Canada recorded pet insurance sales of $ 188 million, which, combined with the U.S. figures, maintains North America’s double-digit growth rate for the sixth consecutive year.
Kristen Lynch, managing director of North American Pet Health Insurance, said the pandemic had a significant impact on these numbers: “Last year we saw home stay and work from home measures introduced during the pandemic closer ties between pet owners and their pets. She also explained that pet owners were expected to want to mitigate unforeseen veterinary costs in the context of the pandemic.
The pandemic brought another positive increase – adoptions and new purchases of pets also hit an all-time high in 2020. Pet insurance companies were only expected to respond to this trend with new offers.
NAPHIA Board Chairman Rick Faucher said he is confident the North American market will continue to grow at the same rate.
NAPHIA published a report which reveals that over 19.2% of insured animals live in California. New York follows with 8.7% and 5.8% of insured animals residing in Florida. Dog owners paid an average of $ 599.03 per year, or $ 49.92 per month, for their pet’s health insurance in 2020. Cat owners spent an average of $ 341.35 over the year – or $ 28.44 per month.
Melissa Gutierrez, senior vice president and general manager of Pets Best Insurance, said the numbers were clear evidence of the humanization of pets: “From estate planning to joint custody planning, the role that plays pets in the family is becoming more and more important. “