Amid an accessibility crisis, one solution has come to the fore

The veterinary industry has grappled with declining clinic visits and slowed veterinary spending for years.1,2 While price increases and an influx of new pet owners have helped maintain practice revenues, the current economic climate poses new challenges for both pet parents and veterinary teams.

Findings from a 2023 Trupanion-led veterinary survey paint a startling picture:

• Pet parent finances impact 6 of 10 treatment plans
• Three in 5 pet parents delay care for their pets due to cost
• Pet parents would stop treatment if the bill reached $1,500

Pet owners face increased barriers to veterinary care today—often having to choose between financial well-being and their pet’s health, or life in some cases. As priorities continue to shift and discretionary spending on pet care takes a backseat to essential expenses, practice visit volumes may dwindle further, threatening the health of pets and our industry.

Now more than ever, we need a solution, and that solution is pet insurance. Hundreds of thousands of veterinary practices and pet owners in the United States and abroad have already realized its value and utility. Amidst growing economic uncertainty, pet owners and veterinarians alike have turned to it to help manage care costs and ease the financial impact of inflation.

Shifting perspectives, one paid invoice at a time

As more pet parents and veterinary teams experience the immediate and direct value of quality medical insurance for pets, support for its use grows. Just look at the numbers.

In the past 5 years, Trupanion’s paid veterinary invoices tripled from $1 billion in 2020 to $3 billion, signaling a necessary perspective shift among pet parents and veterinary professionals. This rapid acceleration reflects a growing recognition of the value high-quality pet insurance brings and the necessity of proactively managing veterinary expenses—particularly as more pet parents realize the high costs associated with pet healthcare and veterinary teams experience firsthand

A closer look at Trupanion’s numbers

Since 2020, Trupanion has experienced significant growth in both payout amounts and the number of claims paid, showing increases of 121% and 92%, respectively and paid approximately $271 million for around 1.2 million invoices. By 2024, this payout rose to around $601 million for approximately 2.4 million invoices.

When comparing 2020 through 2024 with the previous 5 years, Trupanion saw an approximate 180% increase in payout amounts and a roughly 141% rise in the number of claims. From 2015 to 2019, the total payout was $780,023,284, covering 3,946,682 invoices. From 2020 to 2024, the total payout reached $2,176,191,791, encompassing 9,513,220 invoices.

Furthermore, in examining Trupanion’s impact on in-house pharmacy sales, data researchers discovered that hospitals that actively grew their insured client base benefited from increased pharmacy sales. Hospitals utilizing Trupanion software installed in 2022 saw a 3% increase in pharmacy-related claims in 2023 compared to 2021.

More hospitals embrace the tech curve

Advancements in pet insurance software are also fueling pet insurance growth through enhanced veterinary experiences.

Novel technologies, like Trupanion’s Veterinary Portal and VetDirect Pay, use artificial intelligence (AI), large language models, and retrieval-augmented generation to allow providers to adjudicate claims and pay invoices directly to veterinary practices instantly, in real time.

This streamlined process simplifies practice operations by eliminating tedious paperwork and reducing the time spent on financial discussions. With the increasing cost of veterinary care, eliminating up-front costs for pet owners can also be a crucial factor in ensuring timely and lifesaving treatment for patients.

Since Trupanion surpassed $2 billion in paid claims in 2023, it has averaged $48.6 million in monthly payments to veterinary practices and pet parents—equating to about $1.5 million per day. Out of this $48.6 million in monthly payouts, roughly $23.2 million has been paid directly to practices through VetDirect Pay. Currently, 85% of claims submitted through the Veterinary Portal are paid directly to veterinary practices.

Underscoring the Veterinary Portal’s success in transforming hospital experiences, Trupanion has seen an approximate 164% increase in its use since 2019, growing from around 4,100 active hospitals to more than 10,800 hospitals today.

New perspectives on pet health

Despite Trupanion’s swift growth in paid claims and the 6.25 million insured pets across the US, there continues to be concerns about the practicality and utility of pet insurance—and in some regard, this is rightfully so.

Most pet insurances today operate on a dated reimbursement model, where pet owners must pay upfront for care and then file a claim to get reimbursed days or weeks later. What this model fails to address are the immediate financial constraints of the pet owner, assuming they have the funds to cover costs upfront. This is not a realistic assumption, especially in today’s inflationary environment.

What the reimbursement model does yield is cumbersome paperwork added to front desk workloads and continued financial barriers to pet health. These poor experiences, alongside recent insurer policy cuts, have created widespread skepticism and doubt around pet insurance viability, which could encourage pet owners to view pet insurance as a complex and deceptive business ploy.

Unlike the reimbursement model, Trupanion’s system expedites the claims process with the ability to pay its portion of veterinary invoices directly to practices at checkout, within minutes or less. What results from this streamlined approach are fewer barriers to care, stronger client-veterinarian bonds, and pet parent peace of mind, knowing they can say “yes” to optimal care with little to no upfront costs. At the same time, practices see increased client visits, improved adherence to treatment plans, and prompt pursuits of recommended diagnostics and testing—which ultimately can lead to earlier interventions and healthier pets. The growing rate of acceptance and reliance on high-quality pet medical insurance should be seen as a positive development for the entire veterinary system.

A world within reach

According to the 2023 Trupanion-led veterinary survey, 77% of veterinary professionals prefer a client with pet medical insurance. When asked about the reasoning behind this preference, the overwhelming responses were to provide pets with the best available treatment and to prevent stressful financial conversations with owners. Despite this, more than 80% stated they do not have a single insured patient at their practice.

These findings tell us that most veterinary teams know what pet medical insurance can do for their practice, increase their ability to pursue the best treatment options and protect themselves from emotionally charged financial conversations with clients. Quality pet insurance delivers solutions to these and broader industry issues—we just need some momentum.

While external forces have caused these recent changes, deliberate actions taken by each of us can create similar perspective shifts. This could mean taking steps that move us away from a reactive care model, where treatment plans are compartmentalized to align with pet owners’ financial capabilities, towards a proactive care model, where the gold standard of veterinary care is the only level of care ever provided—from the early puppy days to the golden years and everything in between.

With collective and deliberate changes, a world where pet care is accessible to all is within reach.

References

1. Larkin M, Nolen RS. Less foot traffic at veterinary practices spells declining revenue. American Veterinary Medical Association. Published October 29, 2024. Accessed January 31, 2025. https://www.avma.org/news/less-foot-traffic-veterinary-practices-spells-declining-revenue
2. Larkin M. Pet population continues to increase while pet spending declines. American Veterinary Medical Association. Published October 10, 2024. Accessed January 31, 2025. https://www.avma.org/news/pet-population-continues-increase-while-pet-spending-declines

Margi Tooth joined Trupanion in 2013 and currently serves as Chief Executive Officer. In this role, she oversees all aspects of the company's growth, including product development, distribution, pet acquisition, international expansion, and the introduction of new products and channels. Before joining Trupanion, she spent over 7 years in brand, customer, and digital marketing at one of the world's largest pet insurance providers in the UK. Tooth’s passion for animals stems from her childhood on a farm, where she held a lifelong dream of becoming a veterinarian. This deep-rooted love for pets fuels her dedication to promoting the importance of pet medical insurance.