The North American Pet Health Insurance Association (NAPHIA) has released its 2025 State of the Industry Report, providing the most comprehensive view of the pet insurance market across the US and Canada. The report reveals that 7.03 million pets were insured in North America by the end of 2024, up from 6.25 million the previous year, a 12.2% increase.
Alongside policy growth, the report highlights a steady rise in claims volumes and payouts. As more owners insure their pets, insurers are processing higher numbers of medical claims, with costs reflecting both increased utilisation of veterinary care and the rising complexity of treatments available.
Read the full report on NAPHIA: NAPHIA State of the Industry 2025
NIS Perspective
The latest figures underline two sides of the pet insurance growth story:
- More pets covered – expanding market penetration and consumer awareness.
- More claims to manage – requiring efficient, transparent, and automated processes.
At NIS, we see this as a call to action for insurers to invest in smarter technology. Automation reduces manual case handling, AI-driven triage accelerates decision-making, and fraud controls help protect margins as volumes rise. Importantly, these capabilities give customers faster reimbursements and greater confidence in their cover, the foundation of long-term loyalty.
We also know that pet products are becoming increasingly complex, from lifetime multi-pet policies to flexible add-ons and direct-to-consumer journeys. That’s why our platforms are built to handle high-volume claims, integrate seamlessly with vet networks and comparison sites, and scale as the market continues to grow.
As Elliott Draga, our Chief Commercial Officer at NIS, explains: “Growth is positive, but without AI and automation, rising claims can quickly become unmanageable. Platforms need to be designed to scale, not just to cope, but to deliver a better customer experience at the same time.”
