In 2023, the average annual premium for accident and illness pet insurance for a dog in the U.S. was $675.61, according to the North American Pet Health Insurance Association (NAPHIA), which also reported the number of covered pets increased 17% this past year.

Although most humans view their dogs as part of the family, the animals are considered property and this is why pet insurance is a P&C line.

Dogs comprised the vast majority of covered pets in 2023, with more than 78% of policies covering dogs. NAPHIA Executive Director Kristen Lynch calls the discrepancy the "cat conundrum" and explains there are several reasons for it, including:

• Cats are less likely to visit the vet due to their dislike of leaving the house, leading to lower medicalization.
• Owners of indoor cats may underestimate the likelihood of accidents, focusing on perceived lower risk.
• Misconceptions about smaller size lead to the false belief that vet bills for cats will be manageable.

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Whether it is coverage for dogs or cats, U.S. consumers are showing increasing interest in pet insurance. The sector's gross written premium grew by more than 20% this past year. This growth followed a 24.2% increase in gross premium in 2022 and 30.4% gains in 2021, the NAPHIA reported.