As the world becomes increasingly pet-friendly, with more and more people welcoming furry friends into their homes, the pet insurance industry has experienced significant growth in recent years. The North American Pet Health Insurance Association (NAPHIA) has recently released its 2023 State of the Industry (SOI) Report, showing impressive growth in the North American pet health insurance sector. This report highlights a number of noteworthy industry milestones, including an increase in In-Force GWP over 2022, a record-breaking amount in total premiums for 2022, and an unprecedented number of total pets insured across North America. Let’s dive into the details.
NAPHIA has released its 2023 State of the Industry (SOI) Report
According to the report, the North American pet health insurance sector grew by 23.5% in In-Force GWP over 2021. This development is a clear indication of the constantly growing demand for pet insurance products in the region. Furthermore, the report shows a record-breaking amount of $3.51 billion in total premiums for 2021, and over 5.36 million pets insured across North America. These figures signify the unprecedented level of growth and activity occurring in the industry and reflect a strong demand for pet insurance products.
Significant milestones highlighted in the SOI report
The SOI Report highlights a number of significant milestones achieved in the North American pet health insurance sector, which are worth mentioning. One of the most impressive is the $3.51 billion record in total premiums for 2022. In addition, the number of pets insured across North America surpassed 5.36 million. Furthermore, the premium volume in the US for 2022 amounted to $3.22 billion, marking a 24.2% annual increase over the previous year. In Canada, the total premium volume reached $374.0 million CAD, showing an increase of 19.3% over the previous year.
Industry growth has returned to pre-COVID levels
The report indicates that 2022 was a year of impressive growth for the North American pet insurance industry, with the sector returning to pre-COVID levels of growth. This achievement is particularly remarkable in light of the pandemic, given that the industry also experienced challenges such as loss of revenue and reduced coverage limits.
The value proposition of pet insurance
The report indicates that the value proposition of pet insurance products is what has driven the significant advances in the North American pet insurance industry over the past five years. Customers appreciate the peace of mind their pet insurance coverage brings as it helps them manage unexpected costs and ensures their pets receive the best care possible. The growth of the industry, therefore, suggests that pet owners are more committed to their pets’ health and welfare than ever before.
Pinnacle Pet Group acquires Animal Friends to drive innovation in pet insurance
Pinnacle Pet Group (PPG), a prominent pan-European pet insurance provider with JAB Holding Company as a controlling shareholder, recently acquired Animal Friends. This acquisition is set to drive innovation in pet insurance and will help build Animal Friends’ brand, expertise, and services, expanding its reach across the United Kingdom and into new European markets. The acquisition aligns with PPG’s mission to drive innovation in pet insurance by offering quality coverage options to pet owners worldwide.
The North American pet insurance industry is on the rise, with the recent NAPHIA’s 2023 State of the Industry Report highlighting impressive year-on-year growth. The unprecedented levels of activity seen this year are driven by the strong value proposition of pet insurance products, which offer peace of mind and ensure pets receive the best care possible. The acquisition of Animal Friends by PPG is also a significant step in driving innovation in pet insurance, and the company aims to expand its reach across the United Kingdom and into new European markets. To stay up-to-date with the latest developments and news in the industry, subscribe to our daily FinTech newsletter.