‘Pets are part of a family but they also come with a cost,’ says Rohit Thomas
As workers increasingly choose pets over parenthood, the concept of a dependent is being redefined, with morning routines now consisting of belly rubs in crates than bottle feeds in cribs.
Consequently, insurers are now rethinking what it means to provide family coverage.
BMO Insurance joins the line-up of several other insurance providers who have entered a growing but still underpenetrated market: pet insurance. Rohit Thomas positioned BMO’s entry into pet insurance as part of a broader, long-term strategy aimed at addressing evolving consumer needs and tapping into underdeveloped markets.
“COVID-19 really sort of led to a spike in pet ownership and at the same time, similar to medical inflation, you have rising vet costs. You can have emergency treatments that can range up to $5,000 or even more,” said Thomas, CEO and president of BMO Insurance, adding that routine care can push annual spending past $2,500.
He believes those figures are leading more Canadians to consider coverage for their pets, especially as household financial planning becomes increasingly sensitive to unexpected expenses.
According to Thomas, rising pet ownership for the sake of wellbeing and evolving attitudes of having a family are the key reasons BMO decided to ultimately offer coverage. While Canadians increasingly view pets as members of the family, many still underestimate the financial implications of veterinary care. Thomas said too many customers only consider insurance when their pets are older, which creates complications for coverage and pricing.
“Pets are part of a family but they also come with a cost,” he noted, adding that the sector remains underdeveloped, with low awareness and late adoption being persistent barriers. “Getting that behaviour to start to buy [insurance] when they're a puppy and building that muscle memory to continue to buy that insurance,” is central to BMO’s strategy, said Thomas.
“We are the first Canadian bank to own and launch BMO Pet Insurance. Our vision is to be an insurer that can be used year-round for all insurance needs and that includes the pets Canadians love,” he added.
Thomas underscored the relatively low penetration of pet insurance in Canada compared to countries like the US and UK, where penetration rates are higher, suggesting there’s substantial room for growth, approximately 10 to 13 per cent annually through 2030. BMO’s long-term objective is to bring Canadian pet insurance adoption closer to the levels in these countries.
Additionally, with most policies now purchased online, the product also fits BMO’s push toward digital integration.
Thomas also identified lack of awareness and education as the biggest barrier to broader adoption of pet insurance in Canada. He believes many consumers don’t fully understand what policies cover or that some plans, like BMO’s, include benefits such as routine checkups.
BMO hopes to solve that by making the product simple to understand, easy to buy, and integrated with loyalty incentives that nudge customers toward proactive behaviors. Thomas believes that combination could be key to building long-term engagement.
He also tied pet insurance back to BMO’s core mission of protecting families as one of Canada’s largest financial institutions. With vet bills often reaching thousands of dollars, the financial impact can be serious.
“We don’t want to put a family where they have to choose,” he said. “These are real dollar costs. These are real vet costs, real medical costs.”
Trupanion is the primary provider for BMO’s pet insurance offering. Thomas explained that BMO's decision to partner with the insurance provider followed a comprehensive evaluation focused on several key criteria, including digital capabilities, claims management, and overall customer support.
What stood out most, according to Thomas, was Trupanion’s ability to offer consistent pricing for the lifetime of a pet, which BMO viewed as a major advantage, especially for owners insuring their pets from a young age.
However, according to Trupanion’s website, the insurance provider does not cover routine and preventive care, such as vaccines and regular check-ups. It also doesn’t cover pre-existing conditions, routine exam fees, or procedures like spaying and neutering and flea/tick control. Other exclusions can include some dental problems and certain preventable conditions.
While home and auto insurance is mandatory, pet insurance is still discretionary but one with strong growth potential, said Thomas. He believes the market will expand significantly as awareness increases and pet ownership continues to climb.
Thomas also acknowledged the launch of BMO Pet Insurance is part of a much larger initiative: the creation of a digital storefront that will eventually house multiple insurance products in a single, unified platform. Plan members will be able to manage all their insurance policies through one login, with the flexibility to make changes across their portfolio, designed to simplify the user experience and increase accessibility.
Thomas sees pet insurance as the right starting point for this model, given the strong emotional connection people have with their pets and the clear opportunity for education and behaviour shaping.
While BMO’s pet insurance is currently only available in Ontario, Thomas acknowledged plans to expand across the country by in the new year. As part of that national rollout, the bank is relying heavily on data to identify pet owners within its customer base, deliver targeted education, and present timely, personalized offers, emphasizing that the product will be continually refined based on these areas.
“We’ve built it such that we can react very quickly and change,” noted Thomas. “This is our entry and it’s only just beginning.”
