Two state legislators are pushing for the availability of pet insurance for New York residents, potentially making New York the latest state to embrace this coverage option, joining Maine, California, Washington, and Mississippi. Assemblywoman Pamela Hunter, representing Syracuse, and Senator Neil Breslin from Albany recently introduced bills (A.8276/S.7845) in the state Legislature aimed at allowing the issuance of insurance policies covering accidents and pet illnesses.
In their legislative justification, Breslin and Hunter emphasized the need for a comprehensive regulatory framework to govern the pet insurance industry in New York State, highlighting the benefits of establishing uniform definitions, providing enhanced protection to pet owners, and reducing regulatory ambiguity. Similar legislation has been enacted in several states, including California and Maine.
The pet insurance laws in Maine, Mississippi, and Washington are modeled after a template established by the National Association of Insurance Commissioners in August 2022. This model requires insurers to provide clear disclosures regarding exclusions, imposes restrictions or prohibitions on waiting periods for certain conditions, distinguishes between wellness plans and insurance, and outlines specific training requirements for individuals selling pet insurance.
According to the National Association of Insurance Commissioners, the pet insurance industry saw annual premiums reach approximately $2.8 billion in 2021, marking a notable increase of over 30% from the previous year. The Association also reported that around 4 million pets are insured in the United States. Meanwhile, data from the 2023-24 American Pet Products Association’s National Pet Owners Survey reveals that 86.9 million households in the U.S., representing 66% of total households, own pets. These households are projected to spend an estimated $143.6 billion on veterinary care and related products in 2023, up from $136.8 billion in 2022.
Mississippi Senator Walt Michel, a Republican, weighed in during legislative discussions on the Mississippi bill, noting that pet insurance policies primarily cover conditions such as broken bones and cancer. However, he pointed out that certain injuries, like a torn ACL in dogs, might entail a one-year waiting period under most policies. Notably, the Mississippi bill does not extend to life insurance for pets.
