Get paid up to $18,750 for your referral to ExtensisHR!   Start Referral Close

Attracting Millennial and Gen Z Talent with a Pet Insurance Benefit

Happy Millennial woman hugging her brown and white dog in a sunny field

Quick look: Pet insurance is gaining traction as a sought-after voluntary benefit, especially among younger employees opting for furry companions over traditional family expansion. While benefits like healthcare and paid time off are vital in keeping employees happy, offering pet insurance could be a powerful tool to attract millennial and Gen Z talent, the current largest segment of the workforce.

Are you looking for a leg up to meet the changing demands of younger employees? Offering pet insurance as an employee benefit could do the trick.

According to the American Pet Products Association (APPA), U.S. pet industry spending topped $152 billion in 2024. Further, 94 million American households own at least one pet, up nearly 15% from 82 million in 2023.

A pet insurance employee benefit can help organizations attract and retain today’s top talent, particularly Millennials and Gen Z, who now comprise the majority of the workforce and prioritize pet ownership.

Read on to learn about current pet ownership trends, what pet insurance may cover, and why it can be a valuable benefit for employers, especially small businesses looking to stand out against larger competitors.

A closer look at U.S. pet ownership

Americans’ furry friends are near and dear to them, with the overwhelming majority of pet owners considering them family members.

While cats and dogs lead the pack in popularity, U.S. households share their lives with a variety of animals:

  • Dogs (68 million households)
  • Cats (49 million households)
  • Freshwater fish (10 million households)
  • Birds, reptiles, and small animals (6 million households each)
  • Horses and saltwater fish (2 million households each)

The price of pet ownership varies by animal type and stage of life. According to Rover, annual costs associated with cats are:

  • $830-$3,095 for a kitten
  • $760-$3,495 for an adult cat
  • Assistance for senior cats (e.g., late-stage care, medication, dental cleanings) may add an extra $3,355

The figures for dogs run slightly higher:

  • $1,520-$6,415 for a puppy
  • $1,260-$4,170 for an adult dog
  • $2,555-$4,680 for a senior dog

Further, APPA found that 37% of American pet owners are worried about access to veterinary care, with affordability being their top concern.

These expenses and worries reiterate pet insurance’s power to ease financial strain and appeal to today’s top talent.

Millennials and Gen Z: leading the way in pet ownership

Many millennials and Gen Z are choosing to parent pets rather than humans as birth rates continue to drop. For instance, USA Today research found that two-thirds of survey respondents ages 18 to 26 chose to get a dog instead of have a child, at least for now.

The APPA report mentioned above revealed several notable pet ownership trends among these younger generations:

  • 30% of pet owners are Millennials
  • In 2024, 20% (18.8 million) of U.S. pet owners were Gen Z, a 43.5% year-over-year increase
  • Gen Z owns 20% of dogs and cats, an 18% and 25% rise from 2023, respectively
  • 70% of Gen Z pet owners have two or more animals

Consumer Affairs reports the impact pets have had on young pet parents:

  • 25% of millennials say they would sell their car to afford a life-saving procedure for their pet
  • 81% claim they love their pet more than at least one family member

However, 17% of millennial pet owners report that they would be slightly or not at all prepared to pay for life-saving treatment for their pets in the next month. This is where companies can make an impact and gain a competitive advantage by offering pet insurance for employees.

What is pet insurance, and what can it cover?

Pet insurance plans provide payment or reimbursement for specific covered veterinary expenses. Although many policies cover standard wellness exams, shots, chronic conditions, and acute injuries and illnesses, coverage will vary from plan to plan.

According to the North American Pet Health Insurance Association (NAPHIA)’s 2024 State of the Industry Report, there are 6.25 million insured pets in the U.S., with a total premium volume of almost $4 billion.

The report also states the five most common pet insurance claims for dogs include:

  • Gastrointestinal issues
  • Skin conditions (infections, allergies, dermatitis, masses)
  • Urinary tract, kidney, and bladder concerns
  • Otitis/ear infections
  • Allergies

Likewise, the top five most widespread claims for cats were:

  • Urinary tract, kidney, and bladder problems
  • Gastrointestinal issues
  • Respiratory concerns
  • Dental disease
  • Skin conditions (infections, allergies, dermatitis, masses)

Pet insurance as an employee benefit: helping SMBs stand out

Small businesses must regularly evaluate their benefit offerings to remain competitive. A Forbes survey found that 40% of employers believe their workers would leave for better benefits elsewhere, and 10% of employees would accept a pay cut in exchange for stronger offerings.

Unfortunately, these plans can be costly for small employers to obtain independently, which is why many choose to work with a professional employer organization (PEO). PEOs, a type of human resource outsourcing partner, can offer negotiated group rates, fixed-cost, multi-year plans, and employer contributions at a less expensive rate than if SMBs sought the same benefits on their own.

Working with a PEO also gives employers access to cost-effective, modern employee benefit plans. Plus, their benefits experts routinely monitor new trends and benefits—including those related to furry family members—so you don’t have to.

A PEO partner, like ExtensisHR, provides various voluntary benefits in addition to pet insurance, including:

Additionally, ExtensisHR’s Employee Solution Center is dedicated to elevating your workforce’s benefits experience, answering their calls in 10 seconds or less. Featuring a team of customer service experts well-versed in employee benefits, the ESC assists your employees with questions about open enrollment, plan comparisons, qualifying life events, and more.

The right PEO not only unlocks access to high-value employee benefit plans but acts as your trusted advisor for benefits planning, administration, and management. Explore ExtensisHR’s PEO solution today, or contact us to discover how we can help you offer better plans at competitive prices.

Back to Top

Get the latest HR insights