The number of insurance claims made reached 911,000, up nine per cent compared with 2014, while their value clocked in at £657m, which is the equivalent of £1.8m a day.
The average pet insurance premium came in at £241, which is good value compared with the average claim value of £720.
"The record levels of claims handled by pet insurers highlights that owning a pet can be costly as well as rewarding," said Mark Shepherd, general insurance manager at the ABI. "While it is good to see more pet policies in force, too many of the nation’s pet owners still don’t have any cover in place."
While 3.9m of the country's cats and dogs are covered by an insurance policy, that equates to just one in four of the UK's nine million dog owners and one in seven of the 7.9 million cat owners having insurance.
Shepherd added: "The cost of getting quality veterinary treatment can quickly run into thousands of pounds, particularly with a greater range of medical treatments for pets now available. Pet insurance gives you peace of mind that you won’t have to deny your pet life-saving treatment because the veterinary bills are too expensive."