USD 31.08 billion
Crop Insurance Market Size, Share, Growth Analysis, By Coverage(Multi Peril Crop Insurance (MPCI), Crop Hail Insurance), By Type(Crop Yeild Insurance, and Crop Revenue Insurance), By Distribution Channel(Banks, Insurance Companies, Brokers/Agents, and Others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35A2659 |
Region:
Global |
Published Date: October, 2024
Pages:
157
|Tables:
87
|Figures:
76
Crop Insurance Market Insights
Global Crop Insurance Market size was valued at USD 39.10 billion in 2022 and is poised to grow from USD 42.50 billion in 2023 to USD 82.84 billion by 2031, growing at a CAGR of 8.7% in the forecast period (2024-2031).
The global crop insurance market is witnessing significant growth during the forecasted period, driven by increasing demand from farmers and agricultural producers seeking protection against unforeseen setbacks for their crops.
The expansion of agricultural risks is crucial for the market's growth as agriculture plays a vital role in every economy, and the rising demand for food security is expected to lead to increased insurance policy sales.
The commercialization of agriculture is also contributing to the growth of the crop insurance market, as it necessitates risk analysis and drives demand for insurance coverage.
Moreover, the emergence of new and harmful insects and viruses affecting crops is further boosting the market. Governments' initiatives to support the agriculture industry are fostering market expansion by raising farmer awareness about crop insurance and enhancing agricultural financial stability.
Challenges faced by the agriculture sector, such as declining arable land, environmental concerns, and high labor costs, are hindering its growth. However, sustainable farming and greenhouse practices are gaining popularity globally. Greenhouses, in particular, offer more sustainable practices and higher returns per unit area, making them attractive alternatives to traditional agriculture. The adoption of sustainable and greenhouse farming practices presents new growth opportunities for the crop insurance market.
Technology, including satellites, remotely sensed data, and artificial intelligence, is facilitating crucial aspects of crop insurance, such as farmer information and location enrollment, premium collection, and claims payment. These technological advancements are expected to create profitable opportunities for the market's expansion.
However, certain challenges, such as limited availability, lack of awareness, and higher insurance premiums, may restrict the market's growth. Insufficient information about crop insurance policies and claim benefits could also impede the market's progress during the forecasted period.
US Crop Insurance Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Crop Yield Insurance
Fastest Growth
Insurance Companies
Growth Rate
8.19% CAGR
Global Crop Insurance Market ($ Bn)
Country Share for North America Region (%)
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Crop Insurance Market Segmental Analysis
Global Crop Insurance Market is segmented on the coverage, type, distribution channel, and region. By coverage, market is segmented into multi peril crop insurance (Mpci), crop hail insurance. By type, market is segmented into crop yeild insurance, and crop revenue insurance. By distribution channel, market is segmented into banks, insurance companies, brokers/agents, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Crop Insurance Market Analysis By Type
Among the segments in the global crop insurance market, crop yield insurance stands out as the largest and fastest-growing segment, attracting significant attention from farmers and agricultural producers worldwide. The appeal of this segment lies in its ability to ensure income stability for farmers, allowing them to confidently invest in their crops without the fear of substantial financial losses.
Additionally, governments and policymakers are actively promoting the adoption of crop insurance to bolster the agriculture sector and ensure food security. This favorable landscape has propelled crop yield insurance to become the largest and fastest-growing segment in the global crop insurance market, offering farmers a reliable and effective means to protect their crop yields and financial well-being.
Crop Insurance Market Analysis By Coverage
Within the global crop insurance market, the largest and fastest-growing segment is multi-peril crop insurance (MPCI), capturing the attention of farmers and agricultural stakeholders across the globe. The remarkable growth can be attributed to several factors. Firstly, the increasing frequency and severity of climate change-related events have underscored the importance of risk mitigation in agriculture. Secondly, advancements in technology and data analytics have facilitated more accurate risk assessment and pricing, making MPCI more accessible and appealing to farmers. With its all-encompassing protection and proactive risk management approach, Multi-peril Crop Insurance emerges as the dominant and fastest-growing segment, providing farmers with a reliable and effective means to safeguard their crops and livelihoods.
Global Crop Insurance Market By Type
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Crop Insurance Market Regional Insights
The global crop insurance market exhibits diverse regional insights, with one region standing out as the dominating force and another emerging as the fastest-growing region. North America emerges as the dominating region in the global landscape of crop insurance. With its vast and technologically advanced agricultural sector, North America has embraced crop insurance as a crucial risk management tool for farmers. The region's susceptibility to extreme weather events, such as hurricanes, droughts, and floods, has highlighted the need for robust insurance coverage to protect crop yields and ensure agricultural stability. Moreover, supportive government policies and well-established insurance infrastructures have further bolstered the adoption of crop insurance in North America.
On the other hand, the fastest-growing region in the global crop insurance market is the Asia-Pacific region. As agricultural practices in Asia-Pacific continue to evolve, so does the demand for crop insurance. Rapidly growing populations and increasing food demand put significant pressure on the region's agriculture sector, necessitating risk management solutions to safeguard crop production. Additionally, changing weather patterns, rising occurrences of extreme events, and a shift towards modern farming techniques have heightened awareness about the importance of crop insurance among farmers in the region. With governments actively promoting agricultural resilience and financial protection, the Asia-Pacific region is witnessing a surge in crop insurance adoption, positioning itself as the fastest-growing hub for crop insurance in the global market.
Global Crop Insurance Market By Geography
- Largest
- Fastest
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Crop Insurance Market Dynamics
Crop Insurance Market Drivers
Increasing Digital Initiatives
- The growth of the crop insurance market is fueled by the increasing adoption of digital initiatives and the introduction of cutting-edge technologies. Technologies such as satellite, drones, Internet of Things (IoT), artificial intelligence, mobile applications, and web-based platforms play a pivotal role in enhancing crop insurance. By enabling the detection of diseased crops, accurate weather prediction, and comprehensive data storage related to crops and micro-level land information for harvesting, these advanced features effectively mitigate various uncertainties and risks. As a result, the crop insurance market experiences a boost in effectiveness and expands in size, driven by the surge in digital initiatives and the widespread adoption of advanced technologies in the agricultural sector.
Crop Insurance Market Restraints
Political and Weather Unpredictability
- The success of crop insurance often depends on government support, stable regulatory frameworks, and the involvement of private insurers. Political factors can sometimes hinder the development and implementation of effective crop insurance programs.
- Increasingly unpredictable weather patterns due to climate change can make it more challenging to accurately predict crop losses, affecting the efficiency of insurance models.
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Crop Insurance Market Competitive Landscape
The global crop insurance market presents a competitive landscape with various insurance companies vying for market share and dominance. Established players in the industry, as well as new entrants and insurtech firms, compete to cater to the growing demand for crop insurance worldwide. To gain a competitive advantage, insurance providers focus on offering comprehensive coverage, value-added services, and innovative products that address the unique needs and risks faced by farmers and agricultural producers. Advanced technologies, such as satellite imaging, drones, artificial intelligence, and IoT, are increasingly incorporated to improve risk assessment and streamline claims processes. Strategic partnerships, acquisitions, and collaborations with agritech startups also play a pivotal role in expanding the product range and reaching new markets. Moreover, with governments actively promoting agricultural resilience, insurers seek to leverage policy support and incentives to strengthen their positions. In this dynamic landscape, customer-centricity, technological advancements, and the ability to adapt to changing market dynamics are key factors for sustained success in the global crop insurance market.
Crop Insurance Market Top Player’s Company Profiles
- Great American Insurance Company (US)
- Chubb (US)
- ICICI Lombard General Insurance Company Limited (India)
- Allianz Ghana (Ghana)
- Future Generali India Insurance Company Ltd (India)
- Santam (South Africa)
- Sompo International Holdings Ltd. (Bermuda)
- Hannover Rück SE (Germany)
- Tokio Marine HCC (US)
- Global AG Insurance Services, LLC (US)
- Compeer Financial, ACA (US)
- Kshema General Insurance Limited (India)
- QBE Holdings, Inc. (Australia)
- Reliance General Insurance Company Ltd. (India)
- Tata-AIG General Insurance Company Ltd. (India)
- Fairfax Financial Holdings Limited (Canada)
- Zurich (Switzerland)
- PICC (China)
- Agriculture Insurance Company of India Limited (AIC) (India)
- American Financial Group, Inc. (US)
- QBE Insurance Group Limited (Australia)
Crop Insurance Market Recent Developments
- In October 2022, HDFC ERGO, a prominent insurance company in India, formed a partnership with nurture.farm, a leading agritech startup. This collaboration aims to bolster and expand the range of insurance solutions offered by HDFC ERGO, with the shared vision of empowering farmers and delivering sustainable outcomes to the agricultural community.
- In October 2022, Munich Re, a renowned reinsurance company, made a strategic acquisition of APINITY GmbH. With this acquisition, Munich Re gains access to APINITY's application programming interface (API) solutions in the form of software-as-a-service (SaaS), specially developed for the insurance industry ecosystem.
Crop Insurance Key Market Trends
Adoption Of Climate Index Insurance
- The adoption of climate index insurance, also known as parametric, weather index, or index-based insurance, is on the rise. This type of insurance pays the policyholder when a specified value on an index (such as a percentile of rainfall) is realized. Climate index insurance offers several advantages over traditional yield-based or revenue-based insurance. One key advantage is its lower rates, as it does not require expensive on-the-ground inspections and reduces moral hazards related to information gaps or fraudulent loss reporting. Farmers find climate index insurance appealing due to its potentially lower premiums and effectiveness in transferring climate risks. However, there are challenges that hinder its widespread adoption, including basic risk, limited hazard coverage, and the lack of technical expertise and data. Addressing these issues requires collaboration among scientists, policymakers, and industry stakeholders to develop successful climate index insurance products that can benefit farmers and promote financial resilience against climate-related uncertainties.
Crop Insurance Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the global crop insurance market has experienced robust expansion due to growing worldwide demand for Crop Insurance, fluctuations in agricultural produce prices, changes in import-export rates, and shifting weather conditions, among other factors. Additionally, the increasing adoption of new farming techniques by farmers worldwide and a rising demand for seasonal crops throughout the year are driving the need for crop insurance. The market's growth opportunities during the forecasted period are further fueled by the adoption of advanced technologies, a high demand for valuable and specialty crops, and various other contributing factors.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 39.10 billion |
| Market size value in 2031 | USD 82.84 billion |
| Growth Rate | 8.7% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Crop Insurance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Crop Insurance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Crop Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Crop Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Crop Insurance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Crop Insurance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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