Germany Pet Insurance Market Size, Share & Trends Analysis Report By Coverage Type (Accident & Illness, Accident Only), By Animal Type (Dogs, Cats), By Sales Channel (Agency, Broker, Direct, Bancassurance), And Segment Forecasts, 2025 - 2030

Germany Pet Insurance Market Trends

The Germany pet insurance market size was estimated at USD 1.18 billion in 2024 and is projected to grow at a CAGR of 15.4% from 2025 to 2030. Increasing pet ownership and expenditure, humanization of pets, supportive regulations, and initiatives by market players are anticipated to drive the country’s market growth. One of the primary drivers in the market is the growing pet ownership in the country. On comparing two reports from the German Pet Trade Association (ZZF) from 2017 & 2024, it can be observed that a remarkable rise of over 16% in dog and 14% in cat population in German households was observed. Furthermore, households owning dogs & cats grew from 40% in 2017 to 46% in 2024. This highlights a growing pet ownership trend in Germany and presents a broader market for pet-related services, especially pet insurance.

As more households embrace pets as family, there is a stronger inclination toward ensuring their health and well-being. This emotional investment increases the likelihood of pet owners seeking financial protection against veterinary costs. Moreover, with rising pet healthcare expenses, insurance becomes a practical necessity. Thus, these trends create favorable conditions for expanding pet insurance coverage in Germany.

Additionally, the escalating costs of veterinary treatments significantly contribute to the rising adoption of pet insurance in Germany. As pets are increasingly seen as family members-a trend known as pet humanization-owners are more willing to invest in high-quality healthcare, leading to a surge in demand for premium veterinary services. Treatments for common medical issues such as cruciate ligament tears (EUR 1,000 - EUR 4,000), eye surgery (EUR 900 - EUR 2,500 per eye), ear infections (EUR 500), skin tumors (EUR 1,000), and routine vaccinations (EUR 70) can place a substantial financial burden on pet owners.

This rising financial pressure prompts many households to seek financial protection through pet insurance. Insurance helps manage unexpected medical expenses and ensures timely and comprehensive care for pets without compromising on quality. Providers like Balunos are responding to this demand with tailored insurance products such as their dog accident insurance plan, which covers a wide range of services-from emergency treatments and surgeries to prosthetics, physiotherapy, and post-operative accommodations. With flexible pricing tiers (Bronze at EUR 11.96, Silver at EUR 16.28, and Gold at EUR 16.77 per month), such plans make advanced veterinary care accessible to a broader segment of pet owners.

Several states in the country have also now made dog liability insurance mandatory for all breeds. These states include Berlin, Hamburg, Lower Saxony, Saxony-Anhalt, Schleswig-Holstein, and Thuringia. In other states, such as Baden-Württemberg, Bavaria, Brandenburg, Bremen, Hesse, North Rhine-Westphalia, Rhineland-Palatinate, Saarland, and Saxony, liability insurance is compulsory for specific breeds classified as dangerous. Mecklenburg-Western Pomerania remains the only state without any legal requirement for dog liability insurance.

This regulatory environment, combined with the rising need to mitigate financial risks associated with pet-related damages, is expected to drive the adoption of pet liability insurance. Liability insurance providers primarily offer plans for dogs and horses. Private liability insurance for small pets like cats typically covers damages they may cause, eliminating the need for separate policies.

Case Study Analysis - Integration of Artificial Intelligence into Pet Insurance

Dalma is a Paris-based startup that has taken a revolutionary step to advance in the sector by leveraging AI to deliver instant claims processing and seamless veterinary consultations. The company aims to enhance pet care by simplifying insurance and wellness solutions for pet owners across Europe. It currently has a customer base of more than 60,000 pets (dogs, cats, and others) across France and Germany.

Dalma’s partnership with Lumigo highlights the critical role of real-time monitoring and AI-driven observability in scaling modern, serverless architectures. By considerably reducing troubleshooting time and enhancing system reliability, Dalma improved operational efficiency and reinforced its leadership in AI-powered pet insurance. This case underscores how the appropriate infrastructure tools can fuel innovation and sustained customer satisfaction.

Market Concentration & Characteristics

German insurers increasingly adopt digital tools to enhance customer experience and streamline operations. Integrating AI-powered claims processing, telemedicine services, and mobile applications allows for efficient policy management and remote veterinary consultations. This digital transformation caters to the preferences of tech-savvy pet owners, making insurance services more accessible and user-friendly. For instance, Dalma, a leading pet insurance provider in the region, employed AI to enhance its operational efficiency and customer experience.

The industry is witnessing notable mergers and acquisitions, reflecting a broader trend of consolidation aimed at expanding market presence and diversifying offerings. For instance, in March 2025, HDI Embedded partnered with German insurtech Hepster to enhance and diversify pet insurance offerings in Germany. This collaboration aims to expand coverage across Europe, leveraging Hepster's embedded insurance model to provide innovative, tailored pet insurance solutions.

Germany’s long-standing Gebührenordnung für Tierärzte (GOT) regulates veterinary fees with set minimum and maximum charges, balancing fair pay for vets and cost protection for pet owners. Though rare in Europe and sometimes criticized by the EU, it helps control rising veterinary expenses. This pricing predictability benefits the pet insurance sector by enabling better risk assessment and premium setting. As a result, the regulation supports the growth and stability of pet insurance amid increasing demand.

In Germany, pet owners often substitute traditional pet insurance with alternatives like self-funded savings accounts, veterinary payment plans, and discount membership programs to manage pet healthcare costs. Some rely on government or animal welfare assistance, crowdfunding, or holistic care approaches. These substitutes offer more control or lower upfront costs but may lack comprehensive emergency coverage. Cultural preferences and cost concerns drive many individuals to choose these alternatives over insurance.

The overall pet adoption and expenditure practices are attracting major global pet insurance providers to expand into the country’s pet insurance sector. For instance, in September 2024, Trupanion expanded into Germany & Switzerland by launching its medical insurance plan offering lifetime pet coverage without restrictions based on breed or age. The policy covers all eligible unexpected accidents and illnesses, including congenital and hereditary conditions. This launch marks a significant step in Trupanion's European expansion strategy.

Coverage Type Insights

By coverage type, the accident & illness segment held the largest revenue share of 81.74% in 2024. This can be attributed to its comprehensive coverage, which includes medications, diagnostics, chronic and acute conditions, and congenital diseases. This broad protection makes it especially appealing for young animals. Coupled with rising veterinary costs, increasing pet ownership, and growing awareness of pet insurance benefits, the demand for such all-encompassing policies continues to drive rapid growth in this segment. Furthermore, insurance providers in and outside the country are actively launching unique plans that provide coverage for multiple health complications in pets.

Other segments comprising liability insurance, lifetime coverage, and surgery, among others, are expected to grow fastest over the forecast period. Liability insurance is vital for dogs and horses, covering damages caused by pets, including personal injury and property damage. Providers like Luko, Barmenia, and DFV offer high coverage limits, addressing material and physical damages. Coverage often falls under private liability policies for cats and small pets, making separate insurance unnecessary. With pets sometimes posing risks despite training, liability protection is becoming increasingly vital. The presence of key insurers offering tailored policies is further accelerating growth in this segment.

Animal Type Insights

Based on animal type, the dog segment dominated the German pet insurance market with a more than 49.57% revenue share in 2024. This can be due to rising dog ownership, growing disposable income, and expanded service offerings by insurers. Dogs are deeply integrated into German lifestyles, often treated as family members and companions for outdoor and social activities. Pet insurance plans for dogs offer comprehensive coverage, including treatments, vaccinations, surgeries, and preventive care, addressing various health needs. As more owners seek to safeguard their pets' health and reduce financial risks, the demand for dog insurance continues to rise. Major providers like Trupanion and Petplan are meeting this demand with tailored, extensive plans.

On the other hand, the others segment is expected to grow at the fastest CAGR during the forecast period. This segment consists of other pets like rabbits, horses, pet birds, etc. Insurance plans for these animals have gained traction in the country over the past few years. For instance, rabbit insurance is gaining traction in the country as more pet owners recognize the importance of safeguarding their rabbits' health.

Figo Pet offers comprehensive rabbit insurance plans starting at €7.49 per month, covering a range of services including veterinary visits, diagnostics, surgeries, medications, and therapies. These plans cater to various needs with options like Basic, Plus, and Total, providing annual coverage limits up to €5,000. The growing popularity of rabbit insurance reflects a broader trend of increased pet ownership and a desire to mitigate unexpected veterinary expenses. As pets like rabbits become more common as household pets, the demand for specialized insurance products tailored to their care continues to rise.

Sales Channel Insights

By sales channel, the direct sales segment held the largest revenue share of over 35.23% in 2024. Direct sales channels are preferred in Germany's pet insurance market due to their ability to offer personalized service and customizable policies tailored to individual pet needs. Key insurers like DFV and Petplan report high revenue shares from direct sales, highlighting their effectiveness. This channel also benefits from strong marketing and educational efforts that raise consumer awareness. As a result, more pet owners are choosing to buy policies directly from insurers for better flexibility and service.

The other sales channels segment is expected to advance at the fastest CAGR of over 16.31% during the projection period. This sales channel, comprising participants such as vets, pet stores, and animal care centers, is gaining traction in Germany due to strategic partnerships with insurers to reach pet owners directly. Companies like Petplan have already generated revenue through vet-based sales, showcasing their effectiveness. These channels promote preventive care, which is more appealing when bundled with insurance. As a result, pet owners are increasingly engaging through these touchpoints, driving growth in this segment.

Key Germany Pet Insurance Company Insights

The pet insurance market in Germany is in a high-growth stage with an accelerating pace, driven by rising veterinary costs and increasing pet ownership. Innovation is strong, supported by advancements in veterinary medicine and diverse insurance plans for various animal species. Major players like Allianz, Agila, and DFV compete through product variety, pricing, and service quality, while niche insurers add to the market's diversity.

Strategic initiatives such as new policy launches, partnerships, and regional expansions are common. The market is dynamic and competitive, with insurers adapting to meet the evolving needs of pet owners. Pet insurance is becoming an increasingly attractive investment for German pet owners seeking financial protection and quality care.

Recent Developments

• In March 2025, Dalma, a pet insurance startup, secured EUR 20 million (USD 22.4 million) in a Series B funding round led by Breega, bringing its total funding to over EUR 50 million (USD 56 million). The company specializes in AI-powered insurance with instant claims processing and 24/7 veterinary consultations, protecting over 60,000 pets across France and Germany.

• In June 2024, a German startup, Feather Insurance (Popsure Deutschland GmbH), raised €6 (USD 6.48) million to expand its insurance platform for expats across Europe. Feather offers customized recommendations, including pet insurance, to meet the specific needs of foreign nationals navigating public and private insurance systems

• In July 2023, Pets Best Insurance Services, LLC, in collaboration with JAB's Independence Pet Group, expanded its partnership to offer comprehensive pet insurance underwriting services through Independence American Insurance Company, aiming to meet the growing demand for pet insurance nationwide.

Germany Pet Insurance Market Report Scope

Germany Pet Insurance Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Germany pet insurance market report based on coverage type, animal type, and sales channel.

• Coverage Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Accident & Illness

  • Accident only

  • Others

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Dogs

  • Cats

  • Others

• Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Agency

  • Broker

  • Direct

  • Bancassurance

  • Others