Across North America, the pet insurance industry is reporting a 22 per cent year-over-year revenue increase in 2023. In Canada, total premium volume reached $485.5-million, an increase of 29.8 per cent over the previous year.
The latest report from the North American Pet Health Insurance Association (NAPHIA), the 2024 State of the Industry Report, estimates that Canadians have 16.4-million pets and estimates the industry has an average penetration rate of 3.52 per cent. Broken down, that’s 5.52 per cent of all Canadian dogs and 1.67 per cent of Canadian cats. In Canada, 75.5 per cent of insured pets are dogs and 24.5 per cent are cats. The report details the average premiums for both dogs and cats for insurance with embedded wellness features, accident and illness insurance and accident only insurance.
Embedded wellness options
Average annual premiums reported per dog are $940.91 for accident and illness insurance. This jumps to $2,117.32 annually for plans with embedded wellness options. (For cats, the average annual premiums reported are $488.73 and $1,162.21, respectively.) In Canada, the association says pet insurance premiums have grown 23.6 per cent on average each year over the past five years.
“Last year the Canadian market experienced its highest year-over-year growth rate since 2015 and outpaced the U.S. market,” says Rick Faucher, NAPHIA president and chief partnerships officer with Fetch Pet Insurance. “With the continued growth of the Canadian market and current penetration rate for dogs and cats in Canada, we see a tremendous upside for the industry in Canada and are very encouraged about the future.”
