Innovations in pet insurance in 2025

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Susan Meyer

Senior Editorial Manager

Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…

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  • Licensed Insurance Agent — Property and Casualty
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Beth Swanson

SEO Content Strategist

Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

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  • Licensed Insurance Agent — Property and Casualty
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Americans love their pets. According to an American Veterinary Medical Association survey, 45% of Americans own dogs, and 32% own cats.[1]  This amounts to over 86 million pet-owning families.[2]

However, caring for a pet – especially their medical needs – can be expensive. Total pet industry expenditures in 2023 averaged $147 billion, and with inflation being what it is, it can only have gone up from there.[3] 

To handle these costs, a rising number of pet owners have gotten insurance. The total number of pets insured in the U.S. in 2023 was nearly 5.7 million, which represented a 17 percent increase over the previous year. 

If you have considered getting pet insurance or already have it, you should know about the current trends changing the industry. From technological advancements to evolving consumer preferences and new policy offerings, here are the big trends impacting pet insurance this year.

A growing industry

The global pet insurance market has seen substantial expansion, with projections indicating a market size of approximately $5 billion by the end of 2024. That market is expected to grow 20.98% from 2025 to 2030, reaching $15.71 billion.[4]

This growth is fueled by increasing pet ownership, rising veterinary care costs, and heightened awareness of the benefits of pet insurance. Rising costs are one of the biggest stressors for pet parents. In just a year, veterinary costs have increased by nearly 11%.[5]

Now, let’s look at some technology supporting this expansion.

New technology in pet insurance

Technology is pivotal in transforming the pet insurance landscape, especially as it is serving more and more pet parents. 

  • Telemedicine Services: Insurers offer telemedicine options, allowing pet owners to access veterinary consultations remotely. This innovation provides convenience and timely medical advice, enhancing the overall care experience.
  • Mobile Apps: Many providers have developed mobile apps that enable policy management, claims processing and health tracking. These platforms streamline interactions and offer the convenience that people have come to expect from most other forms of insurance. 
  • Data Analytics: Utilizing data analytics, insurers can better understand customer needs, leading to more tailored coverage options and proactive health management strategies.
  • Artificial Intelligence: Is there anything not being revolutionized by AI these days? Pet insurance is no exception. AI can automate parts of the claims process, leading to more efficiency in reimbursement. 
  • Pet Wearable Tech: Smart bio-sensing collars and other wearable devices can send notifications about changes to your pet’s vital signs. While not currently integrated with the pet insurance market, there is definitely a way the two industries could combine in the future.

Innovative policy offerings

To meet diverse consumer demands, insurers are introducing flexible and comprehensive policy options to suit the widest variety of needs. 

  • Customized Coverage Plans: Many new policies offer add-ons like dental care or behavioral therapy, allowing pet owners to tailor coverage to their pets' specific needs.
  • Wellness Programs: Many new policies also incorporate preventive care, such as routine check-ups and vaccinations, reflecting a growing interest in maintaining pet health proactively.
  • Alternative Therapies: Coverage for treatments like acupuncture and hydrotherapy is now available for some policies, catering to pet owners seeking holistic care options.
  • Integration with Employer Benefits: Recognizing the importance of pets in employees' lives, some companies are incorporating pet insurance into their benefits packages, supporting employees in managing pet-related expenses and promoting overall well-being.

Future outlook

As long as vet costs rise and people continue to own pets, the pet insurance industry is expected to grow. Factors such as advancements in veterinary technology, increasing consumer awareness and the humanization of pets are expected to drive this expansion. As the industry evolves, a focus on personalized, technology-driven solutions will likely remain at the forefront, ensuring that pet insurance adapts to the changing needs of pet owners and their beloved companions.

Sources
  1. U.S. pet ownership statistics. [American Veterinary Medical Association]

  2. Facts + Statistics: Pet Ownership and Insurance. [Insurance Information Institute]

  3. State of the pet insurance industry. [Pawlicy Advisor]

  4. U.S. Pet Insurance Market Size & Trends.[Grandview Research]

  5. Pet insurance trends. [Veterinary Practice News]