Agricultural Insurance Market Size
The Global Agricultural Insurance Market size reached USD 3214.7 million in 2022 and is projected to witness lucrative growth by reaching up to USD 5,482.2 million by 2030. The market is growing at a CAGR of 6.9% during the forecast period 2024-2031.The agriculture insurance market is experiencing strong growth due to increasing demand from farmers and agribusinesses for risk management solutions. Market players are investing heavily in research and development to improve their products and services and gain a competitive edge in the highly competitive agriculture insurance market.
The agriculture insurance market is characterized by intense competition among key players, which is driving innovation and growth in the market. The agriculture insurance market provides farmers and agribusinesses with financial protection against crop failures, natural disasters and other risks that can significantly impact their income. Factors such as changing weather patterns, growing demand for sustainable agriculture practices, and technological advancements are driving the growth of the agriculture insurance market.
Market Scope
| Metrics | Details |
| CAGR | 6.9% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2023-2030 |
| Data Availability | Value (USD ) |
| Segments Covered | Product, Organization, Distribution Channel and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Awareness of the Need for Risk Management Solutions Drives the Market Growth
The agriculture insurance market is being driven by the increasing awareness of farmers and agribusinesses of the need for risk management solutions in the face of growing risks and uncertainties. As the agriculture industry becomes more complex and interconnected, the need for risk management solutions is becoming more pressing. This factor is driving the growth of the agriculture insurance market.
Growing Demand for Sustainable Agriculture Practices Drives the Market Growth
As the agriculture industry becomes more focused on sustainability, the demand for insurance products and services that support sustainable practices is expected to agriculture insurance market to grow rapidly. For instance, on May 17, 2022, Zurich North America's RCIS, a crop insurance business, expanded its range of precision agriculture providers available to its customers by adding Climate FieldView.
This innovative tool simplifies the collection, storage, and analysis of planting and harvest data on a user-friendly platform, supported by expert customer service, data-driven recommendations and state-of-the-art scientific technology. FieldView offers farmers the convenience of electronically connecting their field data to RCIS systems, resulting in a more seamless, secure and precise crop insurance reporting experience.
Market Segment Analysis
The global agricultural insurance market is segmented based on the product, organization, distribution channel and region.
Increased Demand for Risk Management Solutions is Expected to Drive the Segment Growth in Agricultural Insurance Market
Multi-Peril Crop Insurance (MPCI) holds the largest share of the agriculture insurance market, driven by the increasing demand for risk management solutions among farmers and agribusinesses. MPCI policies are often subsidized by government programs, making them more affordable for farmers and driving the adoption of these policies in many regions.
For instance, the United States Department of Agriculture (USDA) offered a higher incentive for farmers who planted cover crops during the 2022 crop year. Producers must report cover crop acreage by March 15, 2022, to be eligible for this year's Pandemic Cover Crop Programme.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Increased Consumer Awareness and Adoption of Agriculture Insurance Services in North America
North America has dominated the agriculture insurance market with more than 40% share in 2022, driven by various market factors that have contributed to the growth of the industry in the region. The agriculture insurance market in North America is characterized by the widespread adoption of multi-peril crop insurance, which provides coverage for various perils, including adverse weather conditions, pests, and diseases.
According to the minister of agriculture for Saskatchewan, the average crop coverage in 2023 will be at a record-high level of D 446 per acre. The crop average total premium will increase by almost D 2.75, from D 12.05 in 2022 to D 14.79 per acre in 2023. The transition to individual premiums calculated for each crop insured will be another significant change for the program in 2023.
Source: DataM Intelligence Analysis (2023)
Agricultural Insurance Companies
The major global agriculture insurance market players include Insurance Company of India, Prudentisl and XL Callin, China United Property Insurance, American Insurance Group, Tokio Mariane, New India Assurance, Farmers Mutual Hail, Everest Re Group, ICICI Lombard and Chubb.
COVID-19 Impact on Market
The COVID-19 pandemic has had a significant impact on the agriculture insurance market, as it has disrupted supply chains, reduced demand for certain crops, and increased uncertainty and volatility in global markets. In many regions, restrictions on movement and social distancing measures have made it difficult for farmers to access labor, equipment and other resources needed to produce crops and manage livestock effectively. The pandemic has also led to changes in consumer behavior, as many people have shifted their consumption patterns away from fresh produce and towards processed and packaged foods.
Ukraine-Russia War Impact Analysis
The Ukraine-Russia war had a significant impact on the agriculture insurance market as it disrupted agricultural production and supply chains. It increased political and economic uncertainty and led to heightened risk exposure for farmers and agribusinesses in the affected regions. The conflict has led to widespread damage to infrastructure, farmland and livestock. It can reduce yields and the quality of crops and increase the likelihood of insurance claims.
Artificial Intelligence Impact Analysis
Artificial intelligence (AI) has had a significant impact on the agriculture insurance market, enabling insurance providers to offer more efficient and effective risk management solutions to farmers and agribusinesses. AI-powered risk assessment tools can analyze a range of data sources, including weather patterns, crop yields and market trends, to help insurers assess risks more accurately and tailor their products and services to the specific needs of their clients.
Key Developments
- On March 23, 2023, the Union Minister of Agriculture and Farmers Welfare India launched the Pradhan Mantri Fasal Bima Yojana's (PMFBY) DigiClaim, which digitized the claim settlement module for the National Crop Insurance Portal. The automated claim settlement procedure will now be a continuous endeavor to simplify the lives of all insured farmers and offer them sustainable financial flow and support.
- In February 2022, the HDFC ERGO General Insurance Company launched a new Cyber Sachet Insurance Policy, a specialized insurance product made to shield consumers from cyber-related and digital risks.
- In January 2022, Allianz acquired a controlling stake in Jubilee's general insurance operations in East Africa.
Why Purchase the Report?
- To visualize the global agricultural insurance market segmentation based on the product, organization, distribution channel and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of agricultural insurance market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Agricultural Insurance Market Report Would Provide Approximately 61 Tables, 59 Figures and 120 Pages.
Target Audience 2025
- Manufacturers / Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
