The pet insurance industry just hit another major milestone, a clear sign of how much people value their furry companions. With the cost of veterinary care on an upward trend and more awareness about healthcare options for pets, the market for pet insurance has climbed to new heights.  

The North American Pet Health Insurance Association (NAPHIA) recently published its 2025 State of the Industry Report, and the figures are striking. For instance, the total Gross Written Premium for pet insurance in the U.S. soared to $5.2 Billion USD in 2024. Read on for more about the latest NAPHIA report data and learn why pet benefits are quickly becoming indispensable in the modern workplace. 

The 2025 NAPHIA Report: A Closer Look at the Pet Insurance Explosive Growth 

The pet insurance market shows no signs of slowing down. For years, it has demonstrated remarkable expansion, and the latest figures from the 2025 NAPHIA report confirm this powerful trajectory. The industry achieved a total of $5.2 billion USD in Gross Written Premiums across North America in 2024, a substantial increase of 20.8% from the $4.2 billion recorded in 2023. Parallel to financial growth, the number of insured pets also climbed significantly. At the close of 2024, 7.03 million pets were insured, which marks a 12.2% rise from the 6.25 million insured pets at the end of 2023. In the United States alone, the premium volume reached $4.7 billion, with 6.4 million pets covered. 

The Human-Animal Bond as a Driving Force 

Rick Faucher, NAPHIA’s President, attributes this remarkable growth to the ever-strengthening human-animal bond and the commitment of pet parents to provide the best care for their beloved companions. As veterinary costs continue to rise, pet health insurance provides an important financial tool that helps pet parents afford the best medical care available for their pets, regardless of cost. It delivers a clear message: pet health protection is a high priority for many. 

Why Pet Benefits Resonate Deeply with the Workforce 

Pets are considered family members by a majority of pet owners. Today’s workforce, especially younger Millennials and Gen Z, is increasingly seeking employers who acknowledge this profound bond. Data from the Pet Benefits Solutions’ 2025 Benefits Survey Report reveals that 85% of survey respondents expressed interest in having pet related benefits as a part of their voluntary benefits package. This desire for employer support of their entire family – including their pets – is not merely sentimental; it stems from practical financial concerns as well. The same survey found that 40% of employee respondents feel overwhelmingly concerned with costs associated with veterinary care, with pet food expenses as a close second. Unexpected medical expenses for a pet can cause considerable financial strain. It can easily impact an employee’s peace of mind, focus at work, and productivity.  

The Opportunity to Meet Unmet Employee Pet Owner Needs 

Despite this clear demand, there is a huge gap begging to be filled. NAPHIA’s 2025 report indicates that in the U.S., only about 5.4% of dogs and a mere 2.0% of cats possess insurance coverage. This low penetration rate, coupled with high employee interest, signals a substantial unmet need within the modern workforce. Offering pet benefits is a way to fill that gap by alleviating financial stress related to unexpected vet visits, which can range from hundreds to thousands of dollars. A comprehensive employee benefits package that includes options for pet health can profoundly enhance job satisfaction, boost loyalty, and serve as a powerful magnet for new talent in a competitive market. 

Gaining a Strategic Edge with Pet-Related Perks 

In the ongoing effort to attract and retain top talent, forward-thinking employers are turning to widely requested and popular offerings like pet benefits.   

 Attracting Talent and Retaining Employees 

Pet benefits, especially pet insurance, are quickly changing from “nice-to-have” to something many job seekers and employees expect. According to a recent Aflac study, three out of five employees would accept lower salaries if they got voluntary benefits like pet insurance. As we mentioned above, 85% of employees who participated in the Pet Benefits Solutions’ 2025 Benefits Survey Report showed interest in pet-related benefits. Yet, 64% of respondents don’t currently receive any pet related benefits from their employer, even though they want them. This discrepancy presents a clear strategic advantage for proactive employers and brokers who want to promote themselves as forward-thinking and responsive to employee needs. 

Cost-Effectiveness and Return on Employee Goodwill 

Putting these kinds of benefits into place, particularly when they are voluntary, most often comes at no cost to the employer. Yet, the positive impact on employee goodwill, morale, and loyalty can be huge. By offering employees a convenient way to access valuable financial protection for their pets you give them peace of mind that their treasured family members are protected. This allows them to focus better on their work, secure in the knowledge that they can afford necessary care for their animal companions.  

While average premium costs can differ, pet insurance plans are usually designed to be affordable. For instance, the average annual premium for an accident and illness plan for dogs stood at $749.29 in 2024, per NAPHIA. This is a manageable amount when compared to the potential for catastrophic vet bills. In addition, there’s benefit in offering other pet-related perks besides insurance. These could include paid time off for pet emergencies, help with pet boarding costs for employees who travel, or even “pawternity” leave for those who get a new pet, all of which can go a long way toward creating a positive company culture. 

Meeting Employee Expectations 

Today’s workforce is looking for more than just a salary. Employees want an employer who supports all parts of their lives.  

The Pet Effect on Workplace Culture and Satisfaction 

Research backs up the good effects of a pet-friendly workplace. Studies show that employees who work in pet-friendly offices or have access to pet-related support often feel less stress and more job satisfaction. For example, a significant 71% of pet owners would choose a pet-friendly office over an on-site game room.  

For a large number of people, pets are a significant part of life. Adding pet benefits to a benefits strategy sends employees a powerful signal of appreciation and support. This, in turn, builds a stronger feeling of connection, gratitude, and dedication to the company. For many, especially those in younger generations like Gen Z, pets are like children. This makes support for pet care even more meaningful.  

Elevate Your Benefits with Pet Benefit Solutions 

The latest NAPHIA report clearly shows that the desire for financial solutions for pet health is here to stay. With the pet insurance industry bringing in $5.2 billion USD in total Written Premium and covering 7.03 million pets in North America during 2024, the message for employers and benefit brokers is straightforward: pet benefits are more important now than ever.  

To find out how Pet Benefit Solutions can assist you to implement innovative and cost-effective pet benefits, visit petbenefits.com. We lead the pack in employee satisfaction, and offer the simplest, highest value pet benefits on the market. Request a custom proposal today.