Pet Insurance Market Continues Double-Digit Growth in 2025
The U.S. pet insurance market extended a growth streak that now spans at least seven years, according to recent data published by the Insurance Information Institute (Triple-I) and S&P Global Market Intelligence.
Triple-I reported that direct premiums written reached a record $5.47 billion in 2025 and that the market has expanded by more than 10% annually since at least 2018.
S&P Global Market Intelligence similarly found that net premiums earned increased 11% in 2025 to a record $3.59 billion, compared with $3.23 billion in 2024. While still robust, the 2025 growth rate represented a moderation from the 26.6% increase recorded in 2024.
Despite that growth, market penetration remains relatively low. Triple-I noted that fewer than 4% of U.S. pets are currently insured, citing data from the North American Pet Health Insurance Association.
The continued expansion comes as pet ownership reaches new highs. According to the American Pet Products Association, 95 million U.S. households owned pets in 2025, while Americans are projected to spend $165 billion on pet care in 2026.
Industry Profitability Improves Modestly
S&P’s analysis suggests underwriting performance improved modestly during 2025.
The industry’s net loss ratio declined to 74.2% from 76.1% in 2024. S&P noted that pet insurance has historically maintained a relatively stable loss ratio since 2017.
The 2025 reporting year also represents only the second year that pet insurance has been separately reported as its own statutory line of business following changes adopted by the National Association of Insurance Commissioners for 2024 filings.
Trupanion Remains Market Leader
The market remains concentrated among a relatively small group of carriers.
According to S&P Global Market Intelligence:
- Trupanion remained the largest U.S. pet insurer with $1.22 billion in direct premiums written, up 11.7% from 2024.
- Nationwide ranked second despite a 6.4% decline in direct premiums written to $956.3 million as the carrier continued reducing its presence in the segment.
- JAB Holdings recorded the largest year-over-year premium increase among leading competitors, with direct premiums written increasing 79.9%.
- Lemonade reported direct premiums written of $441.2 million, representing growth of 54.7%.
MGAs Play Major Distribution Role
The S&P report also highlights the significant role managing general agents play in distributing pet insurance products.
Trupanion writes most of its business through two MGAs:
- Trupanion Managers USA Inc. — $778 million in direct premiums written.
- Pets Best Insurance Services LLC — $443.2 million in direct premiums written.
Pets Best also generated $201.4 million in premium for JAB Holdings during 2025.
Other notable MGA distribution platforms included:
- PTZ Insurance Agency Ltd. — $370.4 million.
- Figo Pet Insurance LLC — $166.6 million.
- Pet Partners — $83.6 million.
- Pumpkin Insurance Services Inc. — $55.1 million.
For agency professionals, the data underscores how much of the pet insurance market is distributed through specialized programs and affinity channels rather than traditional independent agency networks.
Liability Exposures Continue to Grow
Triple-I’s report notes that the insurance implications of pet ownership extend beyond veterinary expenses.
According to Triple-I:
- Insurers paid $1.86 billion in dog-related injury claims during 2025.
- The average dog-related injury claim reached $65,450.
Triple-I noted that homeowners and renters policies generally provide personal liability coverage for pet-related incidents, subject to policy terms, exclusions, and limits.
For personal lines agencies, the figures serve as a reminder that pet ownership remains a significant liability exposure, particularly as claim severity continues to increase.
Coverage Challenges for Pet Care Businesses
Triple-I also highlighted insurance issues facing pet-related businesses, including:
- Pet sitters.
- Dog walkers.
- In-home pet care providers.
The organization cautioned that homeowners, renters, and standard general liability policies often exclude:
- Business activities conducted in the home.
- Damage involving animals in the insured’s care, custody, or control.
Depending on the operation, Triple-I said specialized pet business liability coverage, endorsements, or inland marine coverage may be required.
Key Takeaway for Insurance Professionals
Taken together, the reports show a pet insurance sector that continues to grow at a double-digit pace while remaining largely underpenetrated. At the same time, rising pet ownership is creating broader insurance implications that extend beyond pet health coverage to homeowners’ liability, renters’ liability, and specialized commercial insurance for pet-related businesses.
