The pet insurance market is at a curious crossroads. On one hand, pet ownership in the U.S. is at an all-time high, with nearly 70% of households having at least one furry companion. On the other hand, only ~3% of pets are currently insured in the country. That’s an enormous opportunity gap.
And embedded insurance might just be the leap this industry needs.
The Rise of the Pet-Tech Ecosystem
In the last five years, the pet-tech ecosystem has exploded-smart collars, fitness trackers, telehealth platforms, DNA testing kits, and pet wellness apps are changing how we care for our animals.
These platforms capture real-time behavioural and health data. Yet, insurance continues to exist as a separate, friction-filled layer- you fill out forms, compare premiums, and hope you’re covered when the unexpected strikes.
But what if the ecosystem itself could offer the protection?
That’s the promise of embedded pet insurance.
Meet Luna & Her Smart Collar (A Glimpse into the Near Future)
Luna is a two-year-old husky. Her owner, Olivia, bought her a GPS collar that also tracks activity, heart rate, and stress levels. One morning, Luna’s biometrics spike- perhaps a reaction to a bee sting. Her collar pings the app. Instantly, Olivia receives a prompt:
“Looks like Luna’s not feeling her best. Add a 3-day health micro-cover with vet video consult for $4.99?”
She taps yes.
Hours later, when Luna is rushed to the vet for an allergic reaction, the embedded insurance automatically kicks in-covering diagnostics, meds, and the follow-up consult.
No paperwork. No waiting. Just protection, when and where it’s needed.
Ex: In 2024, pet wearable brand Tractive partnered with Covea and Ignite to launch Tractive Pet Cover, an embedded insurance policy offered directly via its smart collar app, covering vet fees, accidents, and even video consults.
A Market Ready for Disruption
Embedded insurance isn’t just convenient- it’s a massive growth driver.
- According to Mordor Intelligence, the global pet insurance market is expected to hit $15.8 billion by 2025, with a CAGR of 10.4% through 2030.
- In Europe, 43% of pet insurance sales in 2024 were made via embedded channels—partnered with pet retailers, vets, or tech providers.
- Meanwhile, in the U.S., adoption is slow—but the interest is surging, especially among millennial and Gen Z pet parents, who expect insurance to be bundled into their digital experience.
This is not just a channel strategy-it’s a product reinvention.
Where Embedded Works Best: 4 Strategic Alliances
To unlock this embedded future, MGAs and Carriers must stop building in silos and start building ecosystems. Here’s where the most promising partnerships lie:
| Ecosystem | Strategic Role | Opportunity |
| Smart Wearable OEMs | Data-rich, always-on touchpoints | Usage-based pricing, behaviour-linked triggers |
| Vet Clinic Chains | High-trust access points | Embedded coverage at point of care, bundled post-op care plans |
| E-commerce Platforms | Pet product & food marketplaces | Insurance as checkout add-on (auto-activated on shipping) |
| Telehealth Platforms | First-touch for diagnosis | Instant coverage for consult-to-claim journeys |
Each touchpoint is a conversion moment-a chance to turn convenience into coverage.
The Tech & Trust Equation
With data flowing from collars and care platforms, MGAs and Carriers can offer dynamic pricing, micro-duration covers, and contextual triggers.
But innovation must walk hand-in-hand with caution.
- Privacy and consent must be front and centre. Who owns the data from Luna’s collar- her owner, the OEM, or the insurer?
- Underwriting logic must evolve – relying only on real-time activity data may miss genetic predispositions or chronic illness markers.
- Claims experience must be seamless – especially if triggered automatically.
In other words: Embedded pet insurance must feel like a service, not a policy.
Why Embedded Insurance Is Not Just a Trend: It’s a Paradigm Shift
For years, MGAs and Carriers have tried to “sell smarter.” Embedded flips that script. It’s no longer about making customers come to insurance, it’s about taking insurance to where they already are.
In pet insurance, where trust is emotional and timing is critical, this approach makes more sense than ever.
The Bottom Line? Don’t Just Insure – Protect Smarter
Imagine a future where:
- Insurance premiums are calculated not once a year, but every morning based on your pet’s sleep and stress.
- Claims are processed not after a hospital visit, but before the vet even closes the file.
- And protection isn’t a product you buy- but an experience woven into your pet’s life journey.
The next phase of pet insurance will be embedded, ecosystem-led, and data-powered. Are you ready to lead it?
