Pet Insurance in Australia 2025: Market Trends and How Policies Work
The Australian Pet Insurance Market in 2025
Pet insurance in Australia is changing as veterinary treatment becomes more advanced and more expensive. This article describes how the market is growing, how many pets are insured, what features policies now include, and the exclusions and limits that most policies share.
Table of Contents
Market Size and Growth
Research firms project substantial growth for the Australian pet insurance market, although their estimates differ. Grand View Research forecasts the market will reach US$5,227 million by 2033, a compound annual growth rate (CAGR) of about 19.2% from 2025. Deep Market Insights projects growth from US$302.77 million in 2024 to US$813.40 million by 2033, a CAGR of about 11.6%. PFS Consulting valued the market at approximately A$1.1 billion in 2022.
The reports identify the same drivers: rising veterinary treatment costs, increasing pet ownership, and owners regarding pets as members of the family.
How Many Australian Pets Are Insured
According to The Vet Desk, about 7% of Australian pets are insured, compared with 25–30% in the United Kingdom and higher rates in some Nordic countries. Other sources report higher Australian figures, so estimates vary with the source and method.
What Affects Premiums
Premiums are set by each insurer and vary widely. The factors insurers commonly use include:
Pet age: older animals usually attract higher premiums
Breed: breeds associated with hereditary conditions can cost more to insure
Excess: a higher excess (the amount paid before the insurer pays) usually lowers the premium
Cover type: accident-only policies usually cost less than accident and illness policies
Location: veterinary costs vary by region, and premiums can vary with them
Rising Veterinary Costs
Veterinary medicine now offers treatments that were rare a decade ago, including advanced imaging, specialist surgery, cancer therapy and orthopaedic procedures. A single episode of such care can cost thousands of dollars. Emergency procedures, chronic disease management and specialist referrals are also becoming more common.
Product Features Insurers Now Offer
Market analysts, including Mobility Foresights, describe several features now offered by some Australian insurers:
Tele-vet consultations: some policies include remote veterinary advice
Wellness add-ons: optional cover that contributes to routine vaccinations, dental care and preventative treatments
Multi-pet discounts: reduced rates for households insuring more than one pet
Flexible excess options: a choice of excess levels, which changes the premium
Digital claims: online quotes and claims through apps
Common Exclusions and Limits
Most pet insurance policies share several kinds of exclusion and limit:
Pre-existing conditions: illness or injury that appeared before the policy started is typically excluded
Breed-specific conditions: some hereditary or congenital conditions may be excluded or subject to sub-limits
Age limits: some policies do not accept pets above a certain age, or exclude some conditions for older pets
Waiting periods: accident cover may start after a few days, and illness cover often after 30 days or more
Annual or lifetime limits: a maximum on what the policy pays in a year or over the pet's life
Sub-limits: lower limits for specific conditions, such as cruciate ligament injury or dental disease
Co-payments: a percentage of each claim paid by the policyholder, in addition to the excess
Routine care: vaccinations, desexing and preventative treatments are usually excluded unless a wellness add-on is included
Each policy's Product Disclosure Statement (PDS) sets out its own exclusions, limits and waiting periods.
FAQs: Pet Insurance in Australia 2025
Frequently Asked Questions
How many Australian pets are insured?
Estimates vary. The Vet Desk estimates about 7% of Australian pets are insured, compared with 25–30% in the United Kingdom. Other sources report higher figures for Australia.
Why is the pet insurance market growing?
Market research reports point to rising veterinary treatment costs, more advanced (and more expensive) treatments, increasing pet ownership, and owners regarding pets as family members.
What does a pet insurance policy usually include?
Policies commonly cover a share of eligible costs for accidents, illnesses or both, up to annual or lifetime limits, after an excess and sometimes a co-payment. Some policies offer optional wellness add-ons for routine care. Each policy's PDS sets out exactly what is covered.
Does pet insurance pay for everything?
No. Most policies exclude pre-existing conditions, and many limit cover for some breed-specific or congenital conditions. Annual or lifetime limits and condition sub-limits apply, and routine care such as vaccinations is usually excluded unless a wellness add-on is included.
Do premiums change as a pet gets older?
Usually, yes. Insurers commonly charge more for older pets, and some apply more exclusions or do not accept pets above a certain age. Each insurer sets its own rules.
General Information
The information in this article is for general informational purposes only. It reflects publicly available data, general industry trends and broad guidance as at the time of writing, and details may change over time. This content is not personal, financial or veterinary advice. For guidance specific to your pet, always consult a registered veterinarian or relevant qualified professional.