Pet insurance started almost 100 years ago in Sweden, where 50 percent of the country's pets are currently insured. In 1982, Veterinary Pet Insurance Co., a Nationwide subsidiary, sold their first-ever pet insurance policy in North America to ensure the dog who played Lassie on television.
According to the North American Pet Health Insurance Association (NAPHIA), gross written premiums for pet health insurance in the United States reached $1.99 bn in the year 2020, which is up by 27.5% from $1.56 bn in the year 2019.
The sector rose at an annual pace of roughly 24.2 % from 2016 to 2020. The overall number of insured pets is expected to reach 3.1 million by the end of 2020.
California (19.4 percent), New York (9.1 percent), Florida (6.2 percent), New Jersey (5.4 percent), and Texas (5.1 percent) are the 5 states with the highest percentage of insured dogs (NAPHIA, 2020)
Dogs accounted for 83% of in-force gross written premium while cats make up for only 17% in the year 2022. The estimated yearly premium for accident-only coverage in 2020, as per NAPHIA, was $218, which encompasses care for car accidents, poisoning, foreign body ingestions, cuts and bruises, and other injuries.
Premiums for accident and illness insurance averaged $594 per year, including both accident-only coverage and diseases such as cancer, infections, digestive problems, and other maladies. Cats' yearly accident & disease insurance rates are about 40% lower.
In North America, there are approximately 20 NAPHIA member pet insurance firms. Accident only, Accident and illness and wellness are the three basic forms of coverage.
Pet insurance businesses were reviewed by Forbes Advisor, Money, and U.S. News, and their top selections for 2022 were given.
According to the Insurance Research Council's 2020 October report, Consumer Responses to the Pandemic and Implications for Insurance, over one-third of Americans (30%) adopted a pet during the COVID-19 pandemic.
As per Liberty Mutual Insurance, many pet owners have elected to forego pet insurance. According to the company's survey, over three-quarters of pet owners do not carry pet insurance.
Pet Ownership In The U.S
Approximately 90.5 million families in the U.S. are pet owners according to the American Pet Products Association's 2021-2022 National Pet Owners Survey. (APPA).
This is an improvement from 56% of American homes in 1988, the inaugural year the study was performed, and 67% in 2019.
Number of Pet-Owning Households in the United States, by Animal (millions)
Image credit- iii.org
In the United States, overall pet sector expenditures reached $103 billion, up by 6.7% from $97.1 bn in 2019. According to the APPA, spending in 2021 will total $109.6 billion.
State-by-State Pet Ownership Facts and Figures
- With 80 million pet-owning households, California tops the list with the largest pet-owning households.
- With 72 percent of families owning a pet, Wyoming has the largest percentage per capita of pet-owning households.
- With 45 percent of households keeping a pet, Rhode Island ranks the lowest percentage of pet ownership households.
- With 8,690,000 dogs, California has the largest pet dog population.
- California has the maximum dog-owning households, with 5,576,000, although only 40.1 percent of households own dogs.
- Idaho has the highest per capita dog ownership households, with 58 percent of families keeping dogs.
- With 794 dog assaults on USPS workers in 2019, California leads the nation.
- Vermont has the most cat adoption per capita of any state, with 45 percent of households having cats.
- With 3,190,000 households owning a cat, California has by far the most cat owners.
- With only 17 percent of households having a cat, Rhode Island has the lowest cat ownership rate of any state. However, even if Washington DC is not a state, it has a lower ownership rate of 16 percent.
Expenditure on Pets
- In the United States, pet spending was $95.7 billion in 2019, with pet meals and treats topping the list (APPA, 2020)
- In 2020, overall pet industry expenditures in the United States are expected to reach $99 billion (APPA, 2020)
- Unexpected procedures, for instance, cancer cruciate ligament tears, can cost $10,000 to $20,000; an insurance coverage would cover 80% of the expense (Global Market Insights, 2018)
- In the first year, the typical cost of a new pet is between $3,000 and $6,000. (ABC, 2019)
- Due to the sheer cost of treatment, 85 percent of veterinarians and their staff feel endangered by pet owners (Telegraph, 2017)
Conclusion: Pet Ownership And Insurance 2022
Pets are frequently viewed as family members, and their health is extremely important to both them & their guardians. For further information, look at all of the pet insurance companies.
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