2025

NAPHIA

The2025NAPHIA

StateoftheIndustryReport

TABLEOFCONTENTS

Highlights:KeyNorthAmericanBenchmarks

Section1:IntroductionandMethodology

Section2:GrossWrittenPremium

Section3:NumberofPets

Section4:AverageAnnualPremiums

Section5:PetsandGWPDistribution

Section6:ClaimsAboutNAPHIA

NAPHIAStateoftheIndustryReport?April22,2025

HIGHLIGHTS

KeyNorthAmerican

Benchmarks

HIGHLIGHTSKeyNorthAmericanBenchmarks

*

*ShowninUSD

4

NAPHIAStateoftheIndustryReport?April22,2025

HIGHLIGHTSKeyNorthAmericanBenchmarks

PetInsuranceMarket(U.S.)

5

NAPHIAStateoftheIndustryReport?April22,2025

HIGHLIGHTSKeyNorthAmericanBenchmarks

PetInsuranceMarket(Canada)

6

NAPHIAStateoftheIndustryReport?April22,2025

HIGHLIGHTSKeyNorthAmericanBenchmarks

In-ForceGWP(NorthAmerica)

(USDinmillions)

$6,000.0

$5,000.0

$4,000.0

$3,000.0

$2,000.0

$1,000.0

$0.0

$5,151.7

$4,264.8

$3,505.5

$2,837.3

$2,174.9

20202021202220232024

20.8%increasefrom2023to202421.7%increasefrom2022to202323.5%increasefrom2021to202230.5%increasefrom2020to2021

26.8%increasefrom2019to2020

YEAR-OVER-YEARVARIANCE

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#1

Introduction

andMethodology

SECTION#1IntroductionandMethodology

TheNorthAmericanPetHealthInsuranceAssociation(NAPHIA)ispleasedtopresentthe2025NAPHIAStateoftheIndustryReport(SOIReport).NAPHIAStateoftheIndustrydataisestimatedtorepresentapproximately99%ofthewrittenpethealthinsurance

premiumintheU.S.andCanada.

TheobjectiveoftheSOIReportistoprovideathoroughunderstandingofthesizeoftheNorthAmericanPetHealthInsuranceindustryandmonitoritsperformanceandgrowthinkeyareas.TheSOIReportalsoaimstoprovideparticipantswitha

comprehensiveandcrediblebenchmarkingtool.

ThefollowingproductsaremonitoredintheNAPHIASOIReport:

?AccidentOnly:Foreignbodyingestion,lacerations,motorvehicleaccident,ligamenttears,poisoning,etc.

?Accident&Illness:Accidentbenefitsplusillnessessuchascancer,infections,digestiveproblems,etc.

?InsurancewithEmbeddedWellness:Comprehensiveplansthatmayincludevaccinations,earlyscreeningdiagnostics,consultationsforpropernutrition,dentalcare,etc.

?Endorsements:Riderssuchaswellnessorcancerendorsements

Eachyear,NAPHIAconductsanindustry-widesurveyandgatherskeypubliclyavailableinformationaboutthemarketplace.ThisdataisthenaggregatedandanalyzedtoproduceasetofestablishedbenchmarksandstatisticswhichareincorporatedintoourNAPHIASOIReport.

CertainreportedinformationisbasedsolelyondataprovidedbyNAPHIAmembers.However,notalloftheinformationintheSOIReportrelatestopetsenrolledbyNAPHIAmembers.Forthatinformation,werelyonpublicly-availabledata,and,wherenecessary,wemakeassumptionsthatweconsiderreasonable.

ThedatainthisSOIReportiscompiledbyWillisTowersWatson,anindependentthird-partyorganizationthatmanagesthecollectionandcompilationofthesurveydata.Thedataisreviewedindetailandreasonablenesstestsareconductedtoensurethatthedataisreportedaccurately.Follow-upswithparticipantsarealsoconductedtovalidatecertainfindings.

DISCLAIMER:NAPHIAandWillisTowersWatsonassumenoliabilityofanykindregardingtheinformationcontainedintheSOI

Report,ortheaccuracyoftheinformationreceivedduringthescopeoftheresearch.TheinformationinthisSOIReportdoesnotconstituteinvestment,legal,accounting,ortaxadvice.

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#1

Introductionand

Methodology

AggregateResultsCompiled

b“In-Forcedata”isbasedonEnd-of-Year(EOY)resultsasatDecember31,2024,assubmittedinthe

surveyquestionnaire/datacallandsupplementedbydatafrompublicly-availablesources.In-ForceGWPandTotalInsuredPetsdataareasatDecember31,2024.

Unlessotherwiseindicated,alldollaramountsinthisreportareexpressedinthecountry’scurrencyfrom2020to2024

=USD

=CAD

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#2

GrossWritten

Premium

SECTION#2

GrossWritten

Premium

In-ForceGWP(U.S.)(USDinmillions)

YEAR-OVER-YEARVARIANCE

21.4%increasefrom2023to202421.4%increasefrom2022to202324.2%increasefrom2021to2022

30.4%increasefrom2020to2021

bThetotalpremiumvolumeintheU.S.,asreportedbyNAPHIAmembersandpublicsources,amountedtoabout$4.7billionatyear-end2024.

bTheU.S.marketcontinuestoexperiencedouble-digitincreases;however,thegrowthhasslowedthepast2yearsandremainedsteadyin2024withaYoYvarianceof21.4%.

bThe5-yearaveragegrowthis25%.

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NAPHIAStateoftheIndustryReport?April22,2025

GrossWrittenPremium

SECTION#2

In-ForceGWP,DogsandCats(U.S.)(USDinmillions)

YEAR-OVER-YEARVARIANCE

DOGS

20.7%increasefrom2023to202420.7%increasefrom2022to202322.2%increasefrom2021to2022

29.5%increasefrom2020to2021

CATS

25.7%increasefrom2023to202426.0%increasefrom2022to202339.1%increasefrom2021to2022

38.3%increasefrom2020to2021

bGWPforinsureddogsrepresented86.1%ofthetotalU.S.volumein2024

bGWPforinsuredcatsrepresented13.9%ofthetotalU.S.volumein2024

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#2GrossWrittenPremium

In-ForceGWP(Canada)

(CADinmillions)

YEAR-OVER-YEARVARIANCE

20.7%increasefrom2023to202429.3%increasefrom2022to202319.3%increasefrom2021to2022

28.1%increasefrom2020to2021

ThetotalpremiumvolumeinCanada,asreportedbyNAPHIAandpubliclyavailabledocuments,amountedto

$583.9millionatyear-end2024(Canadiancurrency),anincreaseof20.7%,reachingnearthelowestgrowthratesincethestartofthepandemic.

bTheCanadian5-yearaverageannualgrowthratewas24.4%,slightlybelowtheU.S.averageannualgrowthrateof25%.

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#2GrossWrittenPremium

In-ForceGWP,DogsandCats(Canada)

(CADinmillions)

YEAR-OVER-YEARVARIANCE

DOGS

20.1%increasefrom2023to202428.1%increasefrom2022to202319.0%increasefrom2021to2022

28.3%increasefrom2020to2021

CATS

24.2%increasefrom2023to202437.0%increasefrom2022to202321.3%increasefrom2021to2022

26.9%increasefrom2020to2021

bInsureddogsrepresentedapproximately84.9%ofIn-ForceGWPin2024,foratotalof$495.6million(Canadiancurrency)

GWPforinsuredcatscontinuestoexperiencehigheryearoveryeargrowththaninsureddogs,representingapproximately15.1%ofIn-ForceGWPin2024

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#3

NumberofPets

16

SECTION#3

TotalInsuredPets(U.S.)

YEAR-OVER-YEARVARIANCE

TotalInsuredPets%increase

12.7%increasefrom2023to202417.2%increasefrom2022to202322.1%increasefrom2021to2022

28.0%increasefrom2020to2021

In-ForceGWP%increase

21.4%increasefrom2023to202421.4%increasefrom2022to202324.2%increasefrom2021to2022

30.4%increasefrom2020to2021

NumberofPets

bResultsfor2024showa12.7%increaseinTotalInsuredPetsintheU.S.,belowtheaverageannualgrowthratesince2020(20.0%).

bIn-ForceGWPgrowthcontinuestooutpacetheTotalInsuredPetsgrowth.

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#3NumberofPets

TotalInsuredDogsandCats(U.S.)

YEAR-OVER-YEARVARIANCE

DOGS

9.8%increasefrom2023to202414.9%increasefrom2022to202319.7%increasefrom2021to2022

26.2%increasefrom2020to2021

CATS

23.5%increasefrom2023to202426.3%increasefrom2022to202332.9%increasefrom2021to2022

36.7%increasefrom2020to2021

bDogsmakeupthemajorityofinsuredpetsintheUnitedStates,with75.6%ofinsureddogsand23.5%ofinsuredcats,representingachangefromthepreviousyear(78.6%/21.4%)

Insuredcats’marketsharehasbeenincreasingYoYsince2020(17.1%in2020,18.3%in2021,19.9%in2022and21.4%in2023and23.5%in2024)

18

NAPHIAStateoftheIndustryReport?April22,2025

SECTION#3NumberofPets

TotalInsuredPets(Canada)

bResultsfor2024showagrowthof7.2%inTotalInsuredPetsinCanadabTheannualgrowthrateofInsuredPetsinCanadasince2020is15.3%

YEAR-OVER-YEARVARIANCE

TotalInsuredPets%increase

7.2%increasefrom2023to202413.6%increasefrom2022to202317.6%increasefrom2021to2022

22.7%increasefrom2020to2021

In-ForceGWP%increase

20.7%increasefrom2023to202429.3%increasefrom2022to202319.3%increasefrom2021to2022

28.1%increasefrom2020to2021

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#3NumberofPets

TotalInsuredDogsandCats(Canada)

YEAR-OVER-YEARVARIANCE

DOGS

6.0%increasefrom2023to202411.5%increasefrom2022to202316.7%increasefrom2021to2022

26.5%increasefrom2020to2021

CATS

10.7%increasefrom2023to202420.6%increasefrom2022to202320.8%increasefrom2021to2022

11.1%increasefrom2020to2021

bBasedontheresultsofthestudy,dogsmakeupthemajorityofinsuredpetsinCanada(74.7%insureddogsvs.

23.3%insuredcats)

bCanadahashistoricallyinsuredahigherproportionofcatsthantheU.S.,howevertheinsuredcatproportionintheUSwas23.5%in2024

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#4

AverageAnnual

Premiums

AverageAnnualPremiums

SECTION#4

AverageAnnualPremiumPerCat,PerDog(U.S.)(WeightedAverage)

2020

2021

2022

2023

2024

InsurancewithEmbeddedWellness

$542.52

$613.67

$559.08

$625.99

$651.30

Cats

(%)variation3.1%9.8%2.0%4.0%

Dogs$991.57$1,051.30$1,134.29$1,263.39$1,321.33

(%)variation6.0%7.9%11.4%4.6%

Accident&Illness

Cats

$387.01

4.7%

$640.04

2.4%

$122.19

1.0%

$200.58

$369.57

$382.92

-1.1%

$674.98

5.5%

$116.11

-5.0%

$204.16

$386.47

0.9%

$749.29

11.0%

$110.03

-5.2%

$193.29

$366.69

(%)variation

0.8%

Dogs

$625.15

$612.65

(%)variation

2.0%

AccidentOnly

$121.38

$184.46

Cats

$121.03

(%)variation

-0.3%

Dogs

$192.39

(%)variation4.3%4.3%1.8%-5.3%

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NAPHIAStateoftheIndustryReport?April22,2025

AverageAnnualPremiums

SECTION#4

AverageAnnualPremiumPerCat,PerDog(Canada)(WeightedAverage)

2020

2021

2022

2023

2024

InsurancewithEmbeddedWellness

$947.72

$957.16

$1,036.05

$1,162.21

$1,229.70

Cats

(%)variation1.0%8.2%12.2%5.8%

Dogs$1,689.39$1,725.15$1,865.66$2,117.32$2,329.69

(%)variation2.1%8.1%13.5%10.0%

Accident&Illness

Cats$367.59$425.27$427.44$488.73$550.35

(%)variation15.7%0.5%14.3%12.6%

Dogs$782.08$796.66$813.98$940.91$1,070.20

(%)variation1.9%2.2%15.6%13.7%

Cats$164.81$188.59$197.79$211.32$221.63

AccidentOnly

(%)variation14.4%4.9%6.8%4.9%

Dogs$200.85$242.23$247.69$262.73$269.57

(%)variation20.6%2.3%6.1%2.6%

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#5

PetsandGWP

Distribution

SECTION#5PetsandGWPDistribution

U.S.

PetsandGWPDistributionbyState(2024)

TOP10STATES

PETS

GWP

California

18.3%

20.2%

NewYork

7.2%

7.8%

Florida

6.3%

6.4%

Texas

5.5%

5.1%

Pennsylvania

4.6%

4.6%

NewJersey

4.6%

4.9%

Washington

3.6%

3.6%

Massachusetts

3.4%

3.8%

Colorado

3.0%

3.1%

Illinois

2.9%

3.2%

FulltablewithallU.S.statesprovidedonthefollowingpage

Canada

PetsandGWPDistributionbyProvince(2024)

PROVINCES

PETS

GWP

Ontario

36.9%

38.1%

BritishColumbia

23.0%

25.3%

Alberta

18.2%

17.7%

Quebec

12.9%

11.3%

Manitoba

2.4%

1.9%

NovaScotia

1.4%

1.1%

Saskatchewan

1.1%

0.9%

Nunavut

0.9%

0.8%

NewBrunswick

0.9%

0.8%

Newfoundland&Labrador

0.9%

0.8%

NorthwestTerritories

0.9%

0.9%

PrinceEdwardIsland

0.4%

0.3%

Yukon

0.1%

0.1%

25

NAPHIAStateoftheIndustryReport?April22,2025

SECTION#5PetsandGWPDistribution

STATE

PETS

GWP

Alabama

0.5%

0.4%

Nebraska

0.5%

0.4%

Hawaii

0.5%

0.5%

RhodeIsland

0.5%

0.5%

Oklahoma

0.5%

0.3%

Arkansas

0.4%

0.4%

Idaho

0.4%

0.4%

Kansas

0.4%

0.4%

Districtof

Columbia

0.4%

0.4%

Delaware

0.4%

0.4%

Alaska

0.3%

0.3%

Mississippi

0.3%

0.2%

Montana

0.2%

0.2%

Wyoming

0.2%

0.2%

SouthDakota

0.2%

0.1%

Other:PuertoRico

0.0%

0.0%

STATE

PETS

GWP

California

18.3%

20.2%

NewYork

7.2%

7.8%

Florida

6.3%

6.4%

Texas

5.5%

5.1%

Pennsylvania

4.6%

4.6%

NewJersey

4.6%

4.9%

Washington

3.6%

3.6%

Massachusetts

3.4%

3.8%

Colorado

3.0%

3.1%

Illinois

2.9%

3.2%

NorthCarolina

2.6%

2.3%

Ohio

2.6%

2.2%

Virginia

2.6%

2.6%

Georgia

2.2%

1.9%

Maryland

2.1%

2.4%

Michigan

2.0%

1.7%

Arizona

1.9%

1.9%

Connecticut

1.7%

2.1%

U.S.Market(Full)PetsandGWPDistributionbyState(2024)

STATE

PETS

GWP

Oregon

1.7%

1.6%

Indiana

1.4%

1.1%

Minnesota

1.4%

1.2%

Nevada

1.3%

1.1%

SouthCarolina

1.3%

1.1%

Wisconsin

1.2%

1.0%

Utah

1.2%

0.9%

Tennessee

1.1%

1.0%

Missouri

1.0%

0.8%

NewHampshire

0.8%

0.8%

Maine

0.8%

0.7%

NewMexico

0.7%

0.6%

WestVirginia

0.7%

0.7%

Kentucky

0.6%

0.4%

Louisiana

0.5%

0.4%

Vermont

0.5%

0.5%

Iowa

0.5%

0.4%

NorthDakota

0.5%

0.6%

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NAPHIAStateoftheIndustryReport?April22,2025

SECTION#6

Claims

SECTION#6Claims

MostCommonMedicalConditions

Cats&Dogs(2024)-NorthAmerica

DogsCats

GI/Diarrhea/Vomiting

GI/Diarrhea/Vomiting

Otitis/EarInfection

UrinaryTractInfection/Kidney/Bladder

Allergies

Other

SkinConditions(Infections,Allergies,Mass,Dermatitis)

Otitis/EarInfection

Other

Respiratory

Growth/Mass

DentalDisease

UrinaryTractInfection/Kidney/Bladder

Diabetes

Anxiety/BehavioralCondition/NeuroIssues

Endocrinology(Hyperthyroidism)

Arthritis/Osteoarthritis

SkinConditions(Infections,Allergies,Mass,Dermatitis)

Musculoskeletal

Anxiety/BehavioralCondition/NeuroIssues

EyeandVisionDisorders

EyeandVisionDisorders

DentalDisease

Arthritis/Osteoarthritis

28

NAPHIAStateoftheIndustryReport?April22,2025

SECTION#6Claims

TopClaimsPaid-Dogs(2024)NorthAmerica

Breed

Sex

Age

ClaimPaid

Amount

Location

Condition

MixedBreed(Large)

M

9

$65,889

Puyallup,WA

Lymphoma

MixedBreed(Large)

M

2

$60,549

PalmBeach,FL

ForeignBody

EnglishBulldog

M

2

$60,239

Paramus,NJ

Pneumonia

DobermanPinscher

M

3

$51,024

Stamford,CT

Transfusion

GoldenRetriever

M

5

$50,337

SanDiego,CA

Peritonitis

MixedBreed