New US pet insurance data shows double-digit growth since 2017

The pet insurance market has experienced double-digit growth in the US every year since 2017, according to an S&P Global Market Intelligence analysis of new data.

The market reported its highest year-over-year growth in 2021 with a 32.5% increase in net premiums earned. That growth slowed to 10.9% in 2024, but the industry reported its highest amount of business over the past decade with $2.83 billion in net premiums earned during that year.

The pet insurance industry's net loss ratio has remained relatively flat since 2017, but ticked up slightly in 2024 to 78.89% from 77.97% in the prior year.

The historical industrywide pet insurance data, which only recently became available in statutory filings, does not include figures from Chubb Ltd., Munich Re, AXA SA and AXIS Capital Holdings Ltd. The information was derived from Schedule P of the annual statements and did not include prior-year values for those insurers.

Major players

Trupanion Inc. was the largest underwriter of pet insurance in the US in 2024 with $1.09 billion in direct premiums. The leading pet insurer also booked a direct incurred loss ratio of 72.3%.

Trupanion was followed closely by Nationwide which reported $1.02 billion in direct written premiums for 2024. Nationwide, which claims to have "pioneered" the pet insurance product more than 40 years ago and cites partnerships with Petco, Walmart and Unum Group, booked a direct incurred loss ratio of 76.9%.

Independence American Insurance Co. ranked third as of year-end 2024 with $491.3 million in direct written premiums.

Top dog MGAs

Trupanion underwrites the bulk of its business through the top two managing general agents (MGAs) in the US: Trupanion Managers Usa Inc., which is Trupanion's in-house MGA; and Pets Best Insurance Services LLC. In 2024, the two MGAs wrote $1.09 billion of business for the leading pet insurer.

An MGA is a specialized insurance intermediary that performs certain functions generally handled by an insurance underwriter.

Pets Best also did business with Independence American Insurance, writing approximately $100 million for the insurer in 2024. Independence American also has multiple additional MGA relationships. Ptz Insurance Agency, Ltd. wrote $179.2 million in premiums for Independence American and Figo Pet Insurance LLC wrote $113.1 million. Pet Partners wrote $75.9 million in business for the insurer while Pumpkin wrote $23 million.

– Read article about the US property and casualty industry surpassing $1 trillion in direct written premiums in 2024. – Gain insight on the P&C industry's historically favorable underwriting profitability in 2024.