For the second consecutive year, Gov. Kathy Hochul has vetoed legislation that would allow creation of pet insurance policies.

The legislation (A.1433/S.5324) was approved unanimously by the state Assembly in late May and unanimously by the state Senate on June 9. The bill was sponsored again this year by Assemblywoman Pamela Hunter, D-Syracuse, while Sen. Jamaal Bailey, D-New York City, carried the bill in the state Senate in place of the retired Neil Breslin, who sponsored the bill in 2024.

New York’s pet insurance industry has existed for decades, but the state has never imposed consumer protections or guidelines. Pet insurance laws in Maine, Mississippi and Washington follow a model pet insurance law adopted in August 2022 by the National Association of Insurance Commissioners. That model requires insurers make clear disclosures about exclusions; restricts and prohibits waiting periods for certain conditions or circumstances; makes a distinction between wellness plans and insurance; and specifies training for people that want to sell pet insurance.

The Associated Press reported in 2023 that the pet insurance industry had annual premiums of about $2.8 billion in 2021, an increase of more than 30% from 2020, according to the National Association of Insurance Commissioners. About 4 million pets are insured in the U.S. According to the 2023-24 American Pet Products Association’s (APPA) National Pet Owners Survey, 86.9 million, or 66% of, households in the U.S. reported owning a pet, and will spend an estimated $143.6 billion on vet care and products (pet food, treats, supplies, live animals, OTC medicine, vet care, product sales, and other services) in 2023, up from $136.8 billion in actual costs in 2022.

Mississippi Sen. Walt Michel, a Republican, said during legislative deliberation on the Mississippi bill that pet insurance policies mostly cover ailments such as broken bones and cancer. Injuries that are expensive to treat, such as a torn ACL in dogs, might have a one-year waiting period under most policies. The Mississippi bill does not apply to life insurance for pets.