NAIC Pet Insurance Model Act Analysis

Summary: Americans love their animals, and spend billions a year on toys, food, and veterinarian expenses. Medical costs for pets can be as expensive as medical costs for humans, but until recently there was no such thing as pet insurance. While pet insurance can be traced as far back as 1890 in Sweden when insurance was available for livestock and horses, it wasn’t until 1982 when the first pet insurance policy was available in the United States.

Since then the pet insurance industry has exploded. The North American Pet Health Insurance Association (NAPHIA) states that the industry exceeded $2.83 billion at the end of 2021, and that the industry has more than doubled between 2018 and 2021. They indicate that over 4.41 million pets are currently insured across North America.