BMO Insurance Launches Pet Coverage Amid Rising Veterinary Costs

BMO Insurance has entered the Canadian pet insurance market as part of a strategic initiative to address evolving consumer needs and expand underdeveloped insurance sectors. The surge in pet ownership following the COVID-19 pandemic, combined with rising veterinary costs, has prompted more consumers to consider financial protection for their pets. Routine veterinary care can exceed $2,500 annually, while emergency treatments can reach $5,000 or more, making pet insurance increasingly relevant for household financial planning. Despite pets being regarded as family members, many Canadian pet owners underestimate veterinary care costs and often delay insurance until their pets are older, which complicates coverage and pricing. BMO's approach emphasizes early adoption of pet insurance, starting from a pet's puppy stage, to foster long-term customer engagement and risk management. Pet insurance penetration in Canada remains comparatively low relative to markets like the U.S. and U.K., presenting substantial growth potential estimated between 10% and 13% annually through 2030. BMO's pet insurance is primarily distributed online, aligning with the company's broader digital strategy aimed at enhancing accessibility and customer experience through a unified digital insurance platform. The product is offered in partnership with Trupanion, selected for its robust digital capabilities, claims management, and customer support. A notable feature is consistent pet insurance pricing for the pet's lifetime, advantageous for early adopters. However, routine and preventive care, along with certain conditions, are typically excluded under Trupanion's policies. While pet insurance remains discretionary in Canada, BMO anticipates expanding its offering nationally, leveraging data-driven customer targeting and personalized education to increase market penetration. This move aligns with BMO's broader mission to provide comprehensive family protection and build a flexible, customer-centric insurance ecosystem.