Canadian Pet Insurance Market: Growth Slows Despite Premium Records
In 2025, the Canadian pet insurance market experienced a notable slowdown in its expansion rate, even as it achieved a new peak in gross written premiums. Despite a record year for financial intake, the pace of growth in the insured pet population was the lowest observed in half a decade. This trend highlights a maturing market where an increasing number of pets are covered, but the speed of new adoptions into the insurance fold is moderating.
Data from the North American Pet Health Insurance Association (NAPHIA) for 2025 indicates that over 643,000 pets in Canada held insurance policies, comprising more than 473,600 dogs and nearly 170,000 cats. When juxtaposed with Statista's estimate of 17.3 million pet dogs and cats in Canada as of May 2026, this suggests an overall insurance penetration rate of approximately 3.7%. Specifically, dogs demonstrated a higher penetration rate at 5.6%, significantly surpassing cats, which stood at 1.9%. The 3.9% year-over-year increase in insured pets, while positive, represented the slowest annual growth rate recorded over the past five years, as detailed in NAPHIA's State of the Industry Report 2026, published on June 21.
Financially, the market achieved a record CA$660.5 million in in-force gross written premiums (GWP) in 2025. However, the 13.1% year-over-year increase in GWP was the smallest since the onset of the pandemic and fell below the five-year average annual growth rate of 20.5%. This pattern was mirrored in both dog and cat insurance segments. Dog insurance GWP saw a 12.2% rise to CA$556.3 million, while cat insurance GWP increased by 18% to CA$104.2 million. Provincially, Ontario led with the largest share of GWP at 37.6% and pet ownership at 36.2%, followed by British Columbia, Alberta, and Quebec.
The cost of premiums also saw an upward trajectory. For policies incorporating wellness products, the average annual premium for dogs surged by 12.6% year-over-year to CA$2,623, marking the highest level since at least 2021. Cats experienced an even sharper increase of 21.9% to CA$1,499. Accident and illness policies also became more expensive, with dog premiums rising 9.9% to CA$1,176 and cat premiums increasing 9.1% to CA$601. Conversely, accident-only policies for dogs saw a 6.9% decline to CA$251, while those for cats grew by 4.4% to CA$212 in 2025.
Regarding claims, gastrointestinal (GI) conditions emerged as the most frequent reason for insurance claims for both dogs and cats across North America in 2025. Beyond GI issues, dogs commonly received treatment for ear infections, various skin conditions, anxiety, and neurological issues. For cats, prevalent conditions included dental disease, urinary tract infections, anxiety, behavioral and neurological problems, and respiratory ailments.
Overall, Canada's pet insurance sector reached new financial heights in 2025, yet the expansion in policyholders slowed, signaling a shift in market dynamics. The data highlights the sustained importance of pet health coverage, particularly for dogs, and sheds light on the common health challenges faced by insured pets, influencing premium adjustments and claim trends.