Pet Insurance Market to Reach USD 25.97 B by 2030, Driven by Rising Costs and Embedded Distribution

Mordor Intelligence has published a new report on pet insurance market offering a comprehensive analysis of trends, growth drivers, and future projections.
The pet insurance market [https://www.mordorintelligence.com/industry-reports/pet-insurance-market?utm_source=abnewswire] stands at USD 15.81 billion in 2025 and is projected to reach USD 25.97 billion by 2030, reflecting a 10.44% CAGR. This growth reflects increasing pet ownership worldwide, rapidly rising veterinary expenses, and broader adoption of insurance solutions among pet parents seeking financial protection. This solid growth outlook underscores how rising global pet ownership, escalating veterinary inflation, and improved regulatory clarity keep premiums expanding even as some legacy players trim policy counts. Insights from a Mordor Intelligence report highlight that the market's strong outlook is underpinned by digital distribution, embedded channels, and a shift toward more comprehensive coverage.

Key Trends

Several critical pet insurance market trends are driving this surge, reshaping how owners think about covering their pets' health needs:

Pet-Humanization and Higher Adoption

People increasingly view their pets as family members, leading to more policy uptake. Millennial and Gen Z pet owners especially prioritize access to advanced veterinary care, such as surgery or chronic illness management, fueling demand for broader coverage.

Escalating Veterinary Costs

Veterinary services are becoming more expensive globally. Inflation in veterinary care, together with staffing shortages and consolidation in large veterinary chains, is pushing up treatment costs. As out-of-pocket vet bills rise, pet insurance becomes a more attractive way to manage financial risk.

Growth of Embedded Insurance Channels

Embedded distribution where insurance is offered through veterinarians, pet retailers, or e-commerce platforms is gaining ground. These channels make it easier for pet owners to buy coverage at moments of high intent, such as during a vet visit or at purchase, lowering friction and acquisition cost.

Technology-Driven Efficiency

Insurtech firms are using AI and data analytics for risk assessment and claims automation. These technologies help reduce costs and enhance customer experience, encouraging more people to consider pet insurance.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights:

https://www.mordorintelligence.com/ja/industry-reports/pet-insurance-market?utm_source=abnewswire

Market Segmentation

According to the Mordor Intelligence analysis, the pet insurance market can be broken down across several key segments:

By Policy Type

*
Accident & Illness

*
Accident-Only

*
Wellness / Preventive-Care Add-ons

*
Chronic / Hereditary Conditions

By Animal Type

*
Dog

*
Cat

*
Other Pets (Birds, Exotics, Equine, etc.)

By Provider Type

*
Private Insurers

*
Mutual / Cooperative Insurers

*
Insurtech-Only Providers

*
Government-linked / Public Schemes

By Sales Channel

*
Direct-to-Consumer (Digital & Phone)

*
Intermediated ( Included Agency / Broker, Bancassurance and other Traditional Third-Party Channels)

*
Embedded (Pet Retailers, Vet Clinics, E-commerce)

By Geography

*
North America

*
South America

*
Middle east&Africa

*
Europe

*
Asia pacific

Key Players

The pet insurance market is competitive and includes a mix of traditional insurers and nimble insurtech firms:

*
Trupanion Inc.

*
Nationwide (VPI)

*
Healthy Paws Pet Insurance LLC

*
Lemonade Inc.

*
Agria Djurforsakring AB

These companies are competing on price, coverage design, and technology. Many are pushing into embedded sales channels while also innovating with wellness riders, AI claims automation, and usage-based underwriting.

Conclusion

The pet insurance market is experiencing strong momentum as more pet owners recognize the financial benefits of protecting their animals from rising veterinary costs. With the pet insurance market size projected to reach nearly USD 26 billion by 2030, the opportunity is clear. Growth is being driven by embedded distribution, regulatory tailwinds, and technology-led innovation, while insurers evolve to offer more comprehensive, flexible policies. As the market expands, both traditional insurers and insurtechs are well positioned to capture share provided they continue to balance cost, service, and accessibility. This dynamic lays the foundation for long-term pet insurance market growth, shaping how the next generation of pet parents protects their furry family members.

Industry Related Reports:

Asia-Pacific Pet Insurance Market [https://www.mordorintelligence.com/industry-reports/asia-pacific-pet-insurance-market?utm_source=abnewswire]: The Asia-Pacific Pet Insurance Market report analyzes the industry across multiple dimensions, including coverage type (such as accident & illness and other policy categories), animal type (dogs, cats, and other companion animals), provider type (private and public/mutual insurers), sales channels (direct-to-consumer digital platforms and additional distribution modes), and policy terms (lifetime and annual/non-lifetime). The study further examines market performance across key regional markets including China, Japan, Australia, India, South Korea, and others with all forecasts presented in terms of value (USD).

Europe Pet Insurance Market [https://www.mordorintelligence.com/industry-reports/europe-pet-insurance-market?utm_source=abnewswire] : The Europe Pet Insurance Market Report provides segmentation across multiple dimensions, including policy type (pet health insurance and pet liability insurance), animal type (dogs and cats), and sales channels such as direct-to-consumer, broker/agent, bancassurance, and online aggregators & insurtech platforms. It also covers key geographic markets, including the UK, Germany, France, Spain, Italy, BENELUX, the Nordics, and the Rest of Europe, with all market forecasts presented in terms of value (USD).

Germany Pet Insurance Market [https://www.mordorintelligence.com/industry-reports/germany-pet-insurance-market?utm_source=abnewswire]: The Germany Pet Insurance Market is segmented by policy type, covering pet health and pet liability insurance; by animal type, including dogs and cats; and by sales channels such as direct-to-consumer, broker or agent networks, bancassurance, and other distribution modes. It is further categorized by coverage level, ranging from basic plans with annual caps of up to 1,000 to standard plans with caps of up to 5,000, along with additional coverage options. Regional segmentation includes North, West, and other parts of the country. Market forecasts are presented in terms of value (USD).

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

For any inquiries or to access the full report, please contact:

media@mordorintelligence.com https://www.mordorintelligence.com/

Media Contact
Company Name: Mordor Intelligence Private Limited
Contact Person: Jignesh Thakkar
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=pet-insurance-market-to-reach-usd-2597-b-by-2030-driven-by-rising-costs-and-embedded-distribution]
Phone: +1 617-765-2493
Address:11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli
City: Hyderabad
State: Telangana 500008
Country: India
Website: https://www.mordorintelligence.com/

Legal Disclaimer: Information contained on this page is provided by an independent third-party content provider. ABNewswire makes no warranties or responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you are affiliated with this article or have any complaints or copyright issues related to this article and would like it to be removed, please contact retract@swscontact.com



This release was published on openPR.