Pet Insurance Market Trends Every Veterinarian Should Monitor

More pet parents are enrolling in pet insurance, with analysts projecting the global market to reach nearly $80 billion by 2033, up from about $22 billion in 2025.¹ Rising costs and policy innovations are among the key factors driving this growth, making insurance a more visible — and influential — part of the veterinary experience.

For veterinary practices, understanding where the market is headed can help teams better navigate financial conversations, set expectations and support clients in making timely decisions about their pet’s care. For many practices, combining pet insurance with financing — and, in some cases, integrated reimbursement — can help reduce payment friction for clients.

Understanding the Pet Insurance Industry

Pet insurance has evolved from a relatively niche offering into a fast-growing segment of the veterinary landscape. Enrollment continues to increase year over year, fueled by a combination of rising care costs, a growing pet population and the ongoing “humanization” of pets.¹

At the same time, insurance providers are introducing more sophisticated products and digital experiences, making coverage easier to purchase and use. What was once an afterthought for many pet owners is now becoming part of how they plan and pay for care.

For veterinary teams, that shift matters. Clients are arriving with different expectations, more questions and, in many cases, a stronger willingness to pursue recommended treatment because they feel financially prepared.

Learn More: Understand how pet owners view vet costs and coverage, so you can have better client conversations about pet insurance and its benefits.

Key Pet Insurance Market Trends to Watch

According to the North American Pet Health Insurance Association, more than 7.6 million pets were insured across North America at the end of 2025, an 8.5% increase from the previous year.²

Here are some of the trends driving that growth.

Rising costs continue to influence decisions

The cost of caring for pets continues to climb, and clients are feeling it. According to Synchrony’s 2025 Pet Lifetime of Care Study, dog care costs over the pet’s lifetime increased nearly 12% since 2022, while lifetime cat costs increased more than 19%.³

Unexpected expenses are also common: More than 70% of both dog and cat owners reported facing a surprise bill over $250. In the same study, veterinary expenses and emergency care rank among their top financial concerns.³

For practices, this reinforces the reality that cost is often part of the clinical conversation and that clients may be weighing financial considerations alongside healthcare recommendations.

Clients are prioritizing care

Even in the face of financial strain, many pet parents find ways to prioritize their pet’s well-being. In Synchrony’s study, of the pet owners surveyed:³

• Between 21% and 36% borrowed money from friends or family to pay for care.
• Between 5% and 11% used funds intended for rent, car payments or mortgages.

That level of commitment reflects how much clients love their pets. Indeed, more than three-quarters of all surveyed pet owners consider their pets family members, best friends or children.³

For veterinary teams, this underscores an important dynamic: Clients want to say yes to care. The challenge is often how to make that possible.

Cats are driving new growth

While dogs still represent the majority of insured pets, cats are a fast-growing segment. In 2024, cats accounted for 23.5% of insured pets in the U.S., and their enrollment growth outpaced that of dogs.²

The cat-specific pet insurance market segment is projected to grow at the fastest rate through 2033, driven by increased cat ownership among younger generations and greater awareness of chronic feline conditions such as kidney disease and diabetes. Insurers are also responding with policies tailored specifically to feline needs.¹

Pet insurance for cats also remains lower than for dogs. The average monthly cost^* of accident and illness insurance for cats is $36, compared with $61 for dogs.⁴

For practices, this trend may translate into more insured feline patients — and more opportunities to educate clients about both preventive and ongoing care.

Technological innovation is reshaping the insurance experience

In recent years, “insurtech” — insurance companies built around digital tools and data — has gained traction in the pet insurance market. These companies leverage AI and mobile-first platforms to streamline underwriting, claims processing and communication. They also use automation and analytics to assess potential problems, reduce fraud and refine pricing.¹

In practical terms, this means potentially:

• Faster claims processing and reimbursements
• More personalized policy options
• Easier enrollment, often at or near the point of care

Some insurers also partner directly with veterinary networks, making it simpler for clients to explore coverage during visits.¹

Technology is also improving how payments and reimbursements connect. In addition to faster claims, some solutions now integrate reimbursement workflows with payment options, helping reduce friction for clients who must pay at the time of service and then wait for reimbursement. Technology like Clarus, for instance, helps connect cost-of-care tools, including the CareCredit credit card and insurance, presenting actionable insights at the point of care and throughout the pet’s health journey.

For veterinary practices, this shift may also help attract and engage younger, tech-savvy pet owners and may make it easier to integrate financial conversations into the care journey.¹

Pet insurance is becoming a workplace benefit

Employers have begun to include pet insurance in their benefits packages to attract and retain millennial and Gen Z employees, another sign that pet care is becoming a larger priority.¹

This shift further normalizes pet insurance and introduces it to clients who might not have otherwise considered it, potentially increasing the number of insured patients practices see over time. Pets Best pet health insurance is a voluntary-benefit option, with coverage programs tailored to employers and veterinary practices.

As more clients rely on reimbursement-based insurance, practices are also looking for ways to reduce upfront payment friction.

How Providers Can Use CareCredit to Help Clients Afford Vet Care

Even with insurance, many pet parents face out-of-pocket costs that can delay or prevent them from moving forward with recommended care. That’s because most pet insurance policies operate on a reimbursement model, requiring payment at the time of service before submitting a claim. Deductibles, copays and coverage limits can also add up. In emergencies or during complex treatment plans, that upfront payment requirement can be especially stressful.

This is where financing options can play an important role. CareCredit allows clients to pay for veterinary services and then repay over time, helping bridge the gap between when care is given and when insurance reimbursement is received.

Building on that model, Synchrony has developed an integrated solution that connects CareCredit with participating pet insurance partners, including Pets Best, Figo Pet Insurance, Pumpkin Pet Insurance and Embrace Pet Insurance. With this integrated reimbursement option, clients can pay with CareCredit,^** submit a claim to their participating insurer and — once the claim is approved — receive eligible reimbursements directly back to their CareCredit account.

This can help reduce the client’s net out-of-pocket burden while keeping the practice’s day-of-service payment workflow the same.

How the Integrated Reimbursement Process Can Work

1. The client pays the practice using their CareCredit credit card.
2. The client submits a claim to a participating insurer and selects CareCredit for reimbursement of eligible expenses.^***
3. After the claim is processed, the approved reimbursement is applied directly to the client’s CareCredit account.
4. The client remains responsible for any remaining balance not covered by insurance (such as deductibles or non-covered items), which can be paid over time with flexible financing with CareCredit for qualifying purchases.^**

Pet Insurance and Financing: What It Means for Your Practice

Pet insurance is becoming more commonplace as veterinary care costs rise and clients opt to spend more on their pet’s health. For veterinary practices, staying informed about pet insurance market trends can help you and your team navigate client conversations about cost and coverage. Pumpkin also provides a dedicated team to support veterinary professionals and provide the resources needed to make insurance conversations simple.

Learn More: Conversations around pet insurance can feel overwhelming. Talking with Pumpkin’s dedicated team is a great place to start. They know the challenges facing clinics today, and are here to help with questions and resources. 9 out of 10 vets trust Pumpkin Pet Insurance to take great care of their patients.⁵

When combined with flexible financing options like the CareCredit credit card, pet insurance can help create a more complete financial path forward. And when reimbursement is more seamlessly connected to the payment method, practices may spend less time on payment logistics, helping teams stay focused on patient care. Ultimately, that can support better outcomes for patients, clients and practices alike.

A Veterinary Financing Solution for Your Clinic

Looking for a way to help your clients be prepared for the lifetime cost of care that is needed for their pets? Consider accepting the CareCredit health and pet care credit card. CareCredit is a flexible financing solution that allows cardholders to pay for veterinary services over time, while you get paid within two business days.

When you accept CareCredit, you receive a custom link that allows clients to see if they prequalify with no impact to their credit score. Those who apply, if approved, can take advantage of flexible financing on qualifying purchases.^* The entire process is fast and friendly, leaving you free to focus on providing the care pets need.

Learn how the CareCredit credit card can help your clients finance veterinary care, or start the provider enrollment process by filling out this form.

Author Bio

Angela Beal, D.V.M., has more than 20 years of experience as a veterinarian. Leveraging her background in private practice and academia, she uses her writing to provide veterinarians with strategies for making practice life more efficient and less stressful.

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