The global crop insurance market size was valued at around USD 35 Billion in 2021 and is expected to reach USD 54 Billion by 2030, expanding at a CAGR of around 6% during the forecast period, 2022 – 2030. The growth of the market is attributed to the increasing financial investment is crops and rising demand for risk management.
Crop insurance is an insurance or a protection policy, which covers farmers, ranchers, and other agricultural producers against unexpected loss of agricultural yields or profits from produce sales due to natural disasters such as hail, draught, floods, fire, pests, and others. Farmers adopting crop insurance can protect themselves from unforeseen setbacks.
Crop insurance provide stability of income to farmers by protecting them from losses caused by crop failure. It allows farmers to manage their crop yields and price risks. Crop insurance facilitate farmers to replay their loans. Crop insurance protects farmers against production loss. It aids farmers in understanding effects of natural calamities and ways to protect their farms. Insurance companies work with technological advancements to facilitate farmers to improve their crop production.
Market Trends, Drivers, Restraints, and Opportunities
- Frequent extreme weather conditions across the globe, due to global warming, are expected to drive the global crop insurance market during the forecast period.
- Increasing government initiative to support agricultural sector boosts the market.
- Rising economic stability in the agricultural sector through crop insurance is projected to spur the market during the forecast period.
- Growing adoption of advancing technologies in the agricultural sector and crop insurance are anticipated to boost the market in the coming years.
- Lack of data for the values of indexes such as amount of rainfall, vegetation indexes, and others is anticipated to hamper the growth of the market during the forecast period.
- Reduced arable land and high labor costs are expected to hinder the growth of the market in the coming years.
- Expanding crop insurance product line is expected to offer growth opportunities to the key market players in the coming years.
Scope of Crop Insurance Market Report
The report on the global crop insurance market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Crop Insurance Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Types (Crop-hail Insurance, Multi-peril Crop Insurance (MPCI), Livestock Insurance, and Others) and Distribution Channels (Insurance Companies, Banks, Agents/Brokers, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Agriculture Insurance Company of India Limited; Fairfax Financial Holdings Limited; American Financial Group, Inc.; ICICI Lombard General Insurance Company Limited; Tokio Marine HCC; Chubb Limited; Zurich Insurance Group Limited; People’s Insurance Company of China Limited; QBE Insurance Group Limited; Sompo International Holdings Limited; AmTrust Financial Services, Inc.; AXA S.A.; New India Assurance Co., Ltd.; and Others
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Crop Insurance Market Segment Insights
Based on Types, the global crop insurance market is divided into crop-hail insurance, multi-peril crop insurance (MPCI), livestock insurance, and others. The multi-peril crop insurance (MPCI)segment is anticipated to expand at a rapid pace during the forecast period, as it is a comprehensive insurance that covers most agricultural risks. Increasing support of governments to adopt MPCI by offering subsidies on the premium is expected to drive the segment in the coming years.
In terms of distribution channels, the market is segregated into insurance companies, banks, agents/brokers, and others. The insurance companies segment is projected to boost the market during the forecast period, due to innovative range of distribution techniques and multiple channels supporting crop insurance services by insurance companies. Insurance companies have multiple tie-ups with brokers, agents, banks, and others, which aid in the expansion of the segment.
On the basis of regions, the global crop insurance market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is estimated to hold a significant share in the market, due to increasing number of farmers and rancher availing prominent crop insurance coverage in the region.
Rising awareness of insurance packages, growing risk management policies, and increasing investment in technological advancements are estimated to fuel the market in North America. The market in Asia Pacific is anticipated to register a high CAGR during the forecast period, as increasing population and rising food demand drive the agricultural production; thus, boosting the market in the region.
Segments
The global crop insurance market has been segmented on the basis of
Types
- Crop-hail Insurance
- Multi-peril Crop Insurance (MPCI)
- Livestock Insurance
- Others
Distribution Channels
- Insurance Companies
- Banks
- Agents/Brokers
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Agriculture Insurance Company of India Limited
- Fairfax Financial Holdings Limited
- American Financial Group, Inc.
- ICICI Lombard General Insurance Company Limited
- Tokio Marine HCC
- Chubb Limited
- Zurich Insurance Group Limited
- People’s Insurance Company of China Limited
- QBE Insurance Group Limited
- Sompo International Holdings Limited
- AmTrust Financial Services, Inc.
- AXA S.A.
- New India Assurance Co., Ltd.
- Others
Competitive Landscape
Key players in the global crop insurance market includes Agriculture Insurance Company of India Limited; Fairfax Financial Holdings Limited; American Financial Group, Inc.; ICICI Lombard General Insurance Company Limited; Tokio Marine HCC; Chubb Limited; Zurich Insurance Group Limited; People’s Insurance Company of China Limited; QBE Insurance Group Limited; Sompo International Holdings Limited; AmTrust Financial Services, Inc.; AXA S.A.; New India Assurance Co., Ltd.; and others, who use business strategies such as product launches, collaborations, partnerships, acquisitions, and mergers to strengthen their hold on the market. For example,
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In February 2022, Fairfax Financial Holdings Limited acquired Fairfax India Holdings Limited, which enables it to exercise control over the subordinate voting shares and multiple voting shares.
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In January 2022, American Financial Group, Inc acquired Verikai, Inc., a machine learning and artificial intelligence company, to utilize a predictive risk tool by Verikai for assessing insurance risk.
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