The North American Pet Health Insurance Association (NAPHIA) released its 2023 State of the Industry (SOI) Report showing the North American pet health insurance sector grew by 23.5% in In-Force GWP over 2022.
The SOI Report highlights a number of noteworthy industry milestones, including a record $3.51bn in total premiums for 2022 (a 23.5% increase from $2.84bn in 2021) and over 5.36 million total pets insured across North America (a 21.7% increase from the 4.4 million total pets insured in 2021).
NAPHIA SOI results show 2022 total premium volume in the US amounted to $3.22bn, a 24.2% annual increase over 2021. In Canada, total premium volume totalled $374.0m CAD, an increase of 19.3% over the previous year).
Rick Faucher, NAPHIA President and CEO and founder of Toto Pet Insurance, said the positive 2022 results are remarkable considering the growing economic pressures pet owners faced last year, with rising food and energy costs, plus higher mortgage and loan interest rates.
Faucher said, “2022 marked a return to pre-COVID levels of growth for our industry. This steady growth is significant during a period when many North Americans were also forced to make difficult decisions on their household spending.
“We’re pleased that pet parents continue to recognize the value pet insurance provides, both in mitigating unexpected veterinary costs, as well as providing for their pet’s ongoing healthcare and well-being. It’s the product’s strong value proposition that is driving the significant advances the North American pet insurance industry has experienced over the past five years.”
Earlier this year, Pinnacle Pet Group (PPG), a pan-European pet insurance provider with JAB Holding Company as controlling shareholder, acquired Animal Friends to drive innovation in pet insurance.
As part of the PPG family, Animal Friends will aim to further build its brand, expertise, and services to expand its reach across the United Kingdom and into new European markets. PPG added that the acquisition is part of a mission to drive innovation in pet insurance.
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