I’m fascinated by the process of evolution. As a kid, I was a dinosaur fanatic, and I was perplexed by the thought of a Stegosaurus (my favorite dinosaur) evolving into a bird. Luckily, I have since wrapped my brain around that.
I’ve always thought of evolution as a slow process affecting species over millennia. However, I was reading a book recently that applied the process of evolution to how countries change over time. That broadened my perspective. Now, I see evolution in other areas too, like the insurance industry’s shift toward pet insurance.
Pet Insurance 2.0
In recent years, pet insurance has undergone a quiet transformation. Once a niche product that was limited to basic emergency coverage, it now has evolved into a dynamic, fast-growing sector that is shaped by shifting cultural values, new technology and rising veterinary costs. While traditional policies once focused narrowly on accident and illness coverage, today’s offerings have evolved into broader and more customizable policies—often embedded in digital ecosystems designed for convenience and care. The result is Pet Insurance 2.0: a new generation of products that reflect how modern consumers view their pets—not as property, but as beloved family members.
This evolution has been largely driven by millennials and Gen Z, who now make up most pet owners in the U.S. These younger generations bring different expectations to the table. They’re more likely to budget for preventive care, explore wellness alternatives and demand personalized, tech-enabled services. They’re also delaying homeownership and starting families later, but they’re not waiting to adopt pets. For many, a pet is their first serious caregiving relationship—and they want insurance coverage that honors that role.
The carriers’ response
In response, insurers are expanding coverage to include not just medical emergencies, but also wellness visits, vaccinations, dental cleanings, spay/neuter services, prescription diets and behavioral therapy. Some carriers are exploring options for chronic disease management and emotional wellness support—including stress-related conditions and end-of-life care decisions (e.g., hospice services and cremation coverage). These are benefits that would have seemed outlandish a decade ago, but now are fast becoming expected by consumers.
What’s changed isn’t just what policies cover—it’s also how they’re accessed and managed. Today’s pet insurance plans often are managed entirely through mobile apps, where policyholders can submit claims, upload invoices, receive reimbursement and chat with customer service in real time. Some of these apps also offer integrations with wearable pet tech—such as fitness trackers and GPS-enabled collars—which allows for data-driven insights that can support early diagnoses or chronic-condition monitoring.
More advanced health care
Televeterinary services have become another defining feature of the modern pet insurance experience. Just as human health care has shifted toward telemedicine, pet care is embracing virtual consultations for triage, post-operative care or behavioral check-ins. These services offer peace of mind, reduce unnecessary vet visits and may support earlier intervention—potentially reducing complications and costs. The value proposition is clear: faster care, fewer complications and stronger relationships between policyholders and their providers.
The pet insurance marketplace may be evolving but why should insurance producers care?
What does this mean for insurance agents
Behind this evolution is a rapidly expanding market. According to the North American Pet Health Insurance Association, the U.S. pet insurance sector grew by more than 20% in 2024 alone, with total premium volume in the U.S. exceeding $4.5 billion! This growth shows no signs of slowing—yet market penetration remains surprisingly low.
According to the American Veterinary Medical Association, there were 163.5 million dogs and cats kept as pets in 2024 in the United States.[1] Yet, only about 6.5 million pets currently are covered by an insurance policy.[2] This accounts for less than 5% of U.S. pets owned. That leaves enormous room for expansion—particularly as newer products meet the needs of previously uninterested demographics.
For independent agents, this growing niche presents both a challenge and an opportunity. Pet insurance may not offer the same commission structure or premium volume as traditional personal lines—at least initially. However, it holds strategic value in deepening client relationships. It allows agents to engage with younger consumers who may not yet need homeowners or commercial insurance, but who are looking for expert guidance and trustworthy advice. Pet insurance also opens the door to cross-selling opportunities with renters, umbrella or even specialty liability policies—especially for clients with high-value or exotic pets.
To succeed in this space, agents must stay informed about rapidly changing product features, carrier offerings and customer expectations. Building partnerships with local veterinary clinics, pet groomers or shelters can help raise awareness and generate referrals. Understanding how app-based policy management works—or how televet consultations are covered—can help position the agent as a knowledgeable resource in a growing and emotionally charged market.
More importantly, engaging with pet insurance is a way for agents to stay relevant in a landscape that’s being reshaped by digital disruption and changing consumer values. Younger clients aren’t just looking for transactional service—they want connection, convenience, and agents who share their priorities. For many of them, that includes caring for the animals that are central to their households and identities.
The future of pet insurance
Looking ahead, the future of pet insurance likely will include even more integration with health tech, AI-based diagnostics and wellness-driven care models. We may see insurance policies explore grief counseling, support for service animals with long-term disabilities, or even home modifications for pets with mobility challenges. As veterinary medicine becomes more advanced and more expensive, insurance will play an increasingly central role in making care accessible and affordable for more families.
Pet Insurance 2.0 isn’t just about adding new bells and whistles—it’s about recognizing that the relationship between people and their pets has changed, and that insurance must evolve in turn. For agents willing to learn and adapt, the field is wide open. And for clients—especially those navigating the joys and challenges of pet parenthood for the first time—having the right coverage in place can make all the difference.
After all, peace of mind shouldn’t be limited to people—our pets deserve it, too. Especially if that pet is a Stegosaurus.
This article originally appeared in the November 2025 issue of PIA Magazine.
[1] American Veterinary Medical Association
[2] North American Pet Health Insurance Association
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
