Canada's pet insurance market continues to trail international peers, despite high levels of pet ownership and rising veterinary costs, according to new data from HelloSafe's Global Pet Insurance Barometer 2025.
More than 60% of Canadian households own at least one dog or cat, with the country's companion animal population exceeding 16 million. Annual spending on veterinary care averages C$2,500 to C$3,000 for dogs and up to C$2,000 for cats. Yet only 3.8% of Canadian pets are covered by insurance, placing the country 17th out of 22 markets surveyed.
By comparison, Sweden insures more than 91% of its pets, the UK reaches 25%, and Northern and Western Europe average between 20% and 23%. The US, Canada's closest peer, has a similar penetration rate at 3.9%, while most other European markets fall between 5% and 9%. In emerging Asia, China remains below 2% despite having more than 220 million pets.
The study also found that Canada's limited uptake reflects structural barriers. While pets are widely considered family members, many owners continue to pay veterinary bills out of pokcet. More than half of Canadian pet owners said they could not afford an unexpected C$1,000 expense, yet skepticism about insurance products persists. Complex policies, exclusions for pre-existing conditions, and limited product choice are cited as factors weighing on adoption.
Meanwhile, the domestic market remains concentrated, with Trupanion, Petsecure and Desjardins accounting for more than 80% of gross written premiums. By contrast, the UK has nearly 90 active providers, and Sweden benefits from a long-established market led by Agria.
Despite its relatively low penetration, the Canadian market is expanding. Gross written premiums are expected to reach C$470 million in 2025, nearly doubling from less than C$250 million in 2020. Annual growth is projected between 10% and 13% through 2030. Dogs make up about 70% of insured pets, and uptake is strongest among urban, younger owners insuring purebred animals.
Rising veterinary costs are driving demand. Emergency visits typically range from C$800 to C$2,000, while surgeries can exceed C$5,000. Analysts noted that without broader adoption, affordability risks will remain for many households.
Globally, insurers are moving toward digital-first distribution, AI-driven claims, and wellness-focused plans. The report also suggested that Canada’s growth will depend on simplifying products, broadening availability, and addressing consumer concerns about value for money.
