Pet insurance has been in existence for over a century; but over time, it has become increasingly prevalent in the U.S. market, with premiums written more than doubling for the period from 2013–2018. While pet insurance continues to gain traction in the U.S., regulatory questions regarding the sale of pet insurance remain, and we contend that these outstanding issues may have the effect of harming consumers, the insurance market, and other stakeholders. In this study, we discuss the pet insurance market and offer recommendations regarding both state insurance licensing requirements and reporting requirements that we believe will better serve consumers and improve market transparency. In particular, we advocate for the use of limited lines licensing for pet insurance, which we believe will enhance producer and consumer knowledge and increase the availability of coverage, which ultimately benefits the industry and consumers. Furthermore, we recommend more detailed reporting requirements as they relate to the pet insurance line of business to allow for a better understanding of both the market and the market’s participants.