Verisk Analytics: Strategic Diversification into the High-Growth Pet Health Insurance Market

The U.S. pet insurance market has emerged as a compelling growth engine for insurers, with gross written premiums surging to nearly $4.75 billion in 2024-a 21.4% year-over-year increase, according to a Business Insider article. This rapid expansion, driven by rising veterinary costs and the emotional value consumers place on their pets, has created a fertile ground for innovation. Verisk Analytics, a leader in data-driven insurance solutions, has seized this opportunity by launching its ISO Pet Insurance Line of Business program in 2025. This move represents a strategic diversification into a high-growth sector while reinforcing Verisk's role as a market enabler for insurers navigating complex regulatory and operational challenges.

Strategic Diversification: Filling a Critical Market Gap

Verisk's entry into pet health insurance is not merely an expansion but a calculated effort to address systemic inefficiencies in the sector. The ISO Pet Insurance Line of Business program offers a standardized suite of tools-including policy forms, rating rules, and actuarially sound loss costs-that streamline the process for insurers to enter or scale their pet insurance offerings, the Business Insider article reports. Prior to this initiative, insurers faced fragmented regulatory environments and limited data infrastructure, which hindered market participation. By providing territorial rating tools that incorporate geography, breed, and age factors, Verisk has created a scalable framework for risk assessment, reducing the time and cost required to launch new products, the Business Insider piece notes.

This diversification aligns with Verisk's core competency in leveraging data analytics to solve industry-specific problems. For instance, its Pet Legislation Dashboard offers real-time compliance updates, ensuring insurers stay ahead of evolving state-level regulations, as described in the Business Insider coverage. Such tools not only mitigate operational risks but also position Verisk as a trusted partner in a sector where regulatory agility is critical.

Market Expansion: Driving Accessibility and Innovation

The pet insurance market's growth is underpinned by a 12.7% annual increase in the number of insured pets, reflecting shifting consumer attitudes toward pet healthcare, according to the Business Insider article. However, this demand has outpaced supply, with many insurers struggling to develop competitive products. Verisk's program directly addresses this imbalance by lowering barriers to entry. By offering pre-built infrastructure, insurers can focus on innovation rather than foundational development, enabling them to introduce tailored coverage options-such as wellness plans or chronic condition management-more efficiently, as the Business Insider reporting explains.

For example, its October 2025 collaboration with Jopari Solutions to enhance medical record reviews using AI-powered models, described in a Sahm Capital analysis, underscores its commitment to integrating advanced analytics across insurance verticals. Similarly, the ISO Pet Insurance Line of Business program leverages Verisk's expertise in actuarial science and risk modeling to create a standardized yet flexible platform, fostering competition and consumer choice.

Broader Strategic Implications

Verisk's foray into pet insurance is part of a larger narrative of strategic diversification. The company has consistently prioritized high-growth sectors where data analytics can unlock value. Its AI-driven claims solutions, such as XactAI, and partnerships with tech firms like Jopari Solutions-as noted in the Sahm Capital analysis-demonstrate a forward-looking approach that aligns with industry trends. By entering the pet insurance market, Verisk is not only capitalizing on a $4.75 billion opportunity but also reinforcing its position as a key infrastructure provider for insurers seeking to navigate complex, evolving markets, the Business Insider coverage observes.

For investors, this move signals Verisk's ability to adapt to market dynamics while maintaining its focus on innovation. The pet insurance sector's projected growth-fueled by demographic shifts and technological advancements-positions Verisk to capture long-term value as a facilitator of market expansion.

Conclusion

Verisk Analytics' ISO Pet Insurance Line of Business program exemplifies strategic diversification in action. By addressing the sector's operational and regulatory complexities, Verisk has created a scalable solution that empowers insurers to meet surging demand. This initiative, coupled with the company's AI-driven partnerships and data-centric approach, underscores its role as a catalyst for innovation in the insurance industry. As the pet insurance market continues to grow, Verisk's early-mover advantage and infrastructure-focused strategy position it as a key player in shaping the future of this high-growth sector.