Proposal to Introduce Pet Insurance in New York Gains Momentum

New York is poised to join the ranks of states offering pet insurance, with Assemblywoman Pamela Hunter and Sen. Neil Breslin spearheading the initiative. They have introduced bills (A.8276/S.7845) in the state legislature to allow issuing insurance policies covering pet accidents and illnesses. This move follows the lead of states like Maine, California, Washington, and Mississippi.

The proposed legislation in New York aims to establish a comprehensive regulatory framework for pet insurance, akin to what other states have implemented. These regulations would include uniform definitions, enhanced protection for pet owners, and clarification of regulatory standards. This approach mirrors the model pet insurance law adopted by the National Association of Insurance Commissioners in August 2022, which emphasizes clear disclosures about policy exclusions, restrictions on waiting periods, a distinction between wellness plans and insurance, and specific training for those selling pet insurance.

The pet insurance industry is experiencing significant growth, with annual premiums reaching approximately $2.8 billion in 2021, a 30% increase from 2020. This growth reflects the rising number of pet owners in the U.S., with an estimated 66% of households owning a pet. The American Pet Products Association’s National Pet Owners Survey projects that U.S. households will spend around $143.6 billion on pet-related products and services in 2023.

Mississippi’s approach to pet insurance, highlighted during legislative discussions, focuses on covering ailments like broken bones and cancer, while potentially imposing waiting periods for certain conditions, such as torn ACLs in dogs. Notably, the Mississippi bill does not extend to life insurance for pets.