Pet insurance market continues hot streak

Since 2016, the number of pets covered has grown by an average 18.9% in the U.S., and 12.6% in Canada.

Employers who are looking for unique benefits to woo new talent to their organizations should consider offering pet health insurance. The market topped $2 billion in 2020, according to a report by the North American Pet Health Insurance Association, continuing a five-year growth streak that has seen annual double-digit increases. Average annual growth is over 23%, the report found.

Related: Pet adoption, care awareness to lift pet insurance market

In the U.S., total premium volume was $1.99 billion as of the end of 2020, while in Canada, total volume reached $188 million ($244.6 million CAD).

“Last year, we saw the stay-at-home and work-from-home measures introduced during the pandemic create even closer bonds between pet owners and their pets,” Kristen Lynch, executive director of NAPHIA, said in a statement. “We believe these strong human-animal relationships are driving pet owners’ desire to address financial uncertainty by mitigating unexpected veterinary costs, contributing to our record 2020 results, in a year that also saw new pet purchases and adoptions reach record levels.”