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 2025-2032
Report ID:
SQMIG35A2659 |
Region:
Global |
Published Date: October, 2024
Pages:
157
|Tables:
87
|Figures:
76
Crop Insurance Market Insights
Crop Insurance Market size was valued at USD 42.5 Billion in 2023 and is poised to grow from USD 46.2 Billion in 2024 to USD 90.05 Billion by 2032, growing at a CAGR of 8.7% during the forecast period (2025-2032).
Crop insurance provides coverage for risks like adverse weather, natural disasters, pests and diseases that can cause farmers to lose crops or income. The crop insurance industry is increasingly integrating technology for data analysis, satellite imagery and weather forecast. This technology helps insurers conduct accurate risk assessments and improve claims management.
The impact of climate change, including more frequent and severe weather events, has affected the crop insurance market. Insurance companies change the risk models in their products to account for changing weather conditions. The crop insurance market has grown in recent years due to increased awareness of weather risks. The government and insurance companies are working to increase farmers’ resilience and extend the coverage to more farmers. Challenges in the crop insurance market include affordability of coverage for smallholder farmers, accurate risk assessment models, and ensuring insurance products meet the needs of different crops and industries.
The market continues to evolve to meet the challenges and opportunities presented by the changing agricultural climate. The increasing value of crop protection globally can have a notable impact on the crop insurance market.
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.
Analysis by Coverage
As per crop insurance market outlook, multi-peril crop insurance is the dominant segment due to its broader scope of insurance. Multi-peril crop insurance segment plays a crucial role by means of offering complete coverage against lots of risks, such as droughts, floods, pests, and sicknesses. This kind of coverage is designed to defend farmers from the monetary impact of multiple perils throughout a single growing season. MPCI guidelines are regularly sponsored through governments, making them more reachable to farmers, mainly in regions with unpredictable weather patterns and excessive weather-related risks. The growing adoption of MPCI is pushed by using its capability to provide holistic safety, making it mainly attractive in countries with enormous farming operations and various agricultural demanding situations.
On the other hand, crop hail insurance is the fastest growing segment in the market. Crop hail insurance is a selected product that covers damages caused exclusively by hailstorms, that can arise at any time all through the growing season. Crop-hail insurance is gaining traction as a supplementary product for the farmers who seek targeted coverage for hail damage, especially where comprehensive insurance policies are less prevalent or accessible. Unlike MPCI, crop-hail coverage regulations are often bought independently via farmers as a supplement to broader coverage. Its appeal lies in its flexibility and affordability, permitting farmers to target precise risks without committing to complete plans. This segment is especially huge in areas where hail is a frequent and localized threat.
Analysis by Type
As per crop insurance market analysis, crop yield insurance is the dominant segment because of its simplicity, broad applicability, and strong government support in many areas. Subsidized packages consisting of India’s Pradhan Mantri Fasal Bima Yojana and the USA' Federal Crop Insurance Program have made yield coverage extra accessible, specifically for small-scale farmers in growing economies. Since yield losses are often more pressing and tangible than price risks, crop yield insurance remains the preferred choice in these regions. Crop yield insurance provides financial protection to the farmers if their crop production falls below a guaranteed level due to perils such as drought, floods, pests, or diseases.
Crop revenue insurance is the fastest growing segment, pushed by growing market price volatility and the developing adoption of precision agriculture. As worldwide agricultural markets face fluctuations due to the geopolitical tensions, change disruptions, and changing demand patterns, farmers are spotting the need for comprehensive protection against both yield and revenue risks. This segment is particularly gaining traction in evolved international locations, wherein huge-scale business farming is heavily influenced by market dynamics. Technological advancements in facts analytics and forecasting have additionally enabled insurers to offer more correct and tailored revenue coverage merchandise, in addition boosting its appeal.
Global Crop Insurance Market By Coverage (%)
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Crop Insurance Market Regional Insights
North America is the dominant region in the crop insurance market. North America had the largest market share as the region has well-established financial institutions that facilitate the easy integration of crop insurance into financial planning and ensure its availability. Additionally, a competitive private insurance industry coupled with the government programs increases options for farmers and encourages innovation and customized coverage options. Meanwhile, it forces the number of children to be adopted to increase encouragement. In addition, the region’s agricultural heritage enhances the understanding of risk management in agriculture, further increasing the demand for crop insurance to protect livelihoods.
Asia-Pacific is the fastest growing region in the market. In the Asia-Pacific region, governments play an important role in promoting crop protection practices through supportive policies and programs. This, along with the alignment of government-sponsored policies, can create favorable conditions for the growth of the crop insurance market. A leading position in crop protection can help grow the entire field. This growth could extend to the crop insurance market, where an increasing number of farmers are seeking coverage as crop prices rise. Crop quality and security can affect the Asia-Pacific region’s role. Effective crop protection practices can improve harvest quality, influence global trade trends and influence insurance demand.
Global Crop Insurance Market By Geography
- Largest
- Fastest
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Crop Insurance Market Dynamics
Crop Insurance Market Drivers
Climate Variability and Increasing Natural Disasters
-
With increasing global climate variability, agricultural activities are exposed to risks such as drought, flood, hail, and other natural disasters. This has made farmers, government and insurance companies aware of the need for crop insurance a complete solution. The increased risk of crop failure due to unpredictable weather conditions pushes stakeholders to adopt crop insurance to mitigate economic losses, providing financial stability and unharvested food supply to farmers.
Government Grants and Subsidies
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Globally, governments increasingly promote crop insurance programs through grants and public-private partnerships. Many countries like US, India and others have launched schemes like Federal Crop Insurance Program and Prime Minister. Crop Insurance Scheme, which subsidizes premiums and encourages farmers to get their crops. This financial support ensures purchasing power for farmers, especially small farmers, thereby driving crop insurance market growth and a growing number of sectors.
Crop Insurance Market Restraints
Increased Cost of Premiums for Farmers
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Despite subsidies, the high cost of some compensation schemes remains a major barrier, especially for smallholder farmers in developing countries. Investing in insurance is a challenge for farmers, especially in areas with inconsistent crop yields. This limits the acceptability of crop insurance and affects market access in low-cost industries.
Limited Awareness and Availability
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The lack of a robust insurance system in remote areas impedes market access, leaving many farmers uninsured and losing money. Poor literacy coupled with complex policies does not discourage farmers from adopting these policies. In many rural areas, farmers are unaware of the benefits of crop insurance or have difficulty accessing insurance providers.
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Crop Insurance Market Competitive Landscape
The crop insurance market is comprised of a mix of public and private players, offering insurance products tailored to meet agricultural needs. Key players include government-sponsored schemes such as the US Federal Crop Insurance Corporation (FCIC) and Zurich Insurance Group, Allianz SE, QBE Insurance, ICICI Lombard General Insurance etc. and private insurers. These companies focus on innovation, technology-driven risk and partnerships to extend their reach and improve operational efficiency. In 2022, BASF partnered with HDFC ERGO General Insurance of India to provide tailored crop insurance solutions for farmers. The collaboration leverages BASF’s expertise in crop protection and agriculture solutions with HDFC ERGO insurance. The objective of this partnership was to provide India’s farmers with a comprehensive insurance package that would mitigate the risks of both production and income.
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
- September 2023: Shrimp Crop Insurance Scheme of Agriculture Insurance Company launched in India. The insurance starts from the beginning and lasts for 130 days until the shrimp is ready.
- July 2023: American Financial Group (AFG) completes the purchase of Crop Risk Services (CRS) from AIG. CRS is the leading crop insurer and the seventh largest provider of the multi-risk crop insurance in the United States.
- October 2022, Munich Re made a strategic acquisition of the Epinity GmbH, a leading reinsurance company. With this acquisition, Munich Re piinity gains access to its Application Programming Interface (API) solution as a Software-as-a-Service (SaaS), designed specifically for the insurance industry.
Crop Insurance Key Market Trends
- Integrating Technology into Crop Insurance: Insurance companies are increasingly using such technologies ensuring quality work and paying farmers fair wages. These tools can accurately assess crop damage, fraud detection, risk prediction, streamline claims processing and increase operational efficiency. Technological advances, including satellite imagery, drones and the big data analytics, are transforming the crop insurance industry.
- Development of Index-based Insurance Models: Index-based insurance, which relies on pre-determined metrics such as rainfall or yield indexes rather than individual loss assessments, is gaining popularity. This system simplifies claim settlement, reducing workload and ensures timely payment to farmers. The increasing adoption of such new insurance policies is changing the conventional market environment, which is attractive to insurers and farmers by addressing the delays and complexities.
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 Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the crop insurance industry is growing exponentially, driven by increased weather risk and government support through grants and programs. The integration of advanced technologies such as satellite tracking and the adoption of index-based insurance models are key factors redefining the market. Overall, the crop insurance market has tremendous potential to provide farmers with sustainable agriculture and financial security, making it an important tool in global food security policies. These innovations increase efficiency, increase claims is convenient and improves farmer satisfaction. Farmers are turning to insurance to protect their money from the unpredictable and natural weather risks, with increasing market demand. Challenges such as the high premiums and lack of knowledge in rural areas are barriers to widespread adoption.
| 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 |
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| 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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