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State of the industry: The impact of pet insurance on U.S. veterinary practices in 2025
As veterinary practices across the United States strive to provide comprehensive and high-quality care, there is a growing recognition of the impact of pet insurance on patient outcomes, client satisfaction, and clinic/hospital growth. Pawlicy Advisor’s State of the Industry data is compiled by Pawlicy Advisor and the American Animal Hospital Association (AAHA) from a survey of 557 veterinary professionals.
Each year, Pawlicy Advisor and AAHA work together to conduct an industry-wide survey and gather key information about the real impact of pet insurance across U.S. veterinary practices. This data is then aggregated and analyzed to produce a set of established benchmarks and statistics which are incorporated into Pawlicy Advisor’s State of the Industry Report.
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Pawlicy Advisor is pleased to present Pawlicy Advisor’s State of the Industry Report: The Impact of Pet Insurance on U.S. Veterinary Practices in 2025.
Pawlicy Advisor’s State of the Industry data represents feedback from 557 veterinary professionals across the U.S.
The objective of this report is to provide a better understanding of the real impact of pet insurance within the veterinary practice.
DISCLAIMER: Pawlicy Advisor and the American Animal Hospital Association assume no liability of any kind regarding the information contained in the State of the Industry Report. The information in this report does not constitute investment, legal, accounting, or tax advice.
Frequency of difficult financial conversations with clients
- 8 out of 10 veterinary professionals in the U.S. have a difficult financial conversation with clients every week.
- Nearly a quarter (23.5%) of U.S. veterinary professionals have difficult financial conversations with clients 5 to 10 times per week or more.
- On average, U.S. veterinary professionals have a difficult financial conversation with clients 4 times per week.
Frequency of adjusting recommended treatment plans due to cost concerns
- 84.4% of U.S. veterinary professionals adjust their recommended treatment plans on a weekly basis due to cost concerns from clients.
- Nearly a third (30.3%) of U.S. veterinary professionals adjust their recommended treatment plans due to client cost concerns 5 to 10 times per week or more.
- On average, U.S. veterinary professionals adjust their recommended treatment plans due to client cost concerns 4.7 times per week.
Pet insurance impacts client ability to say “yes” to care
This is the second year in a row that respondents reflect a nearly unanimous agreement on the positive impact that pet insurance has on providing care.
Comfort with liability of recommending one specific insurer
- Most (80.3%) veterinary professionals are not comfortable recommending only one specific pet insurance provider to their clients, given the legal risks of not having an insurance license.
Less than 1% of veterinary professionals have a P&C insurance license, and therefore, legally, should not solicit for specific insurers. Instead, veterinary professionals should refer clients to a licensed brokerage like Pawlicy Advisor.
