Agriculture Insurance Market
Agriculture Insurance Market Forecasts to 2030 - Global Analysis By Type (Multi-Peril Crop Insurance (MPCI), Crop-Hail Insurance, Livestock Mortality Insurance, Farm Property Insurance, Aquaculture Insurance and Weather Index Insurance), Coverage Type, Distribution Channel, End User and Geography
|
Years Covered |
2022-2030 |
|
Estimated Year Value (2024) |
US $40.5 BN |
|
Projected Year Value (2030) |
US $55.5 BN |
|
CAGR (2024-2030) |
5.4% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
North America |
|
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global Agriculture Insurance Market is accounted for $40.5 billion in 2024 and is expected to reach $55.5 billion by 2030, growing at a CAGR of 5.4% during the forecast period. Agriculture insurance is a specialized form of coverage designed to protect farmers and agribusinesses from financial losses due to adverse events such as natural disasters, disease outbreaks, and market fluctuations. It typically includes crop insurance, livestock insurance, and farm property insurance. This insurance helps mitigate risks associated with farming and ensures financial stability by compensating for losses in yield, livestock health, and farm assets, enabling farmers to recover and sustain their operations.
According to the Food and Agriculture Organization of the United Nations (FAO), agricultural insurance premiums worldwide grew from $8 billion in 2005 to $31 billion in 2014, nearly a fourfold increase in less than a decade.
Market Dynamics:
Driver:
Increasing frequency of extreme weather events
The rising occurrence of extreme weather events, such as droughts, floods, and storms, is a significant driver for the agriculture insurance market. These events pose substantial risks to crop yields and livestock, leading farmers to seek financial protection through insurance. As climate change exacerbates weather unpredictability, the demand for agricultural insurance products grows. Governments and international organizations are also promoting insurance adoption as a risk management tool, further boosting market growth. This trend is expected to continue, making weather-related risks a primary factor in the expansion of the agriculture insurance market globally.
Restraint:
Complexity of policies
Many farmers, especially smallholders in developing countries, find it challenging to understand the intricacies of insurance products, including coverage limits, exclusions, and claim processes. This complexity can lead to misunderstandings, disputes, and reluctance to purchase insurance. Additionally, the diverse nature of agricultural risks and the need for customized policies further complicate product design and pricing. The lack of standardization across different regions and crop types also contributes to this complexity, potentially deterring both insurers from offering products and farmers from purchasing them.
Opportunity:
Developing new and customized insurance products
Advancements in technology, such as satellite imaging, drones, and IoT sensors, enable insurers to offer more precise, data-driven policies tailored to specific crops, regions, and risk profiles. This customization can include index-based insurance, parametric policies, and micro-insurance products for smallholder farmers. Additionally, there's potential for bundling insurance with other agricultural services or financial products. These innovations can improve the attractiveness and accessibility of insurance products, potentially expanding market reach and increasing adoption rates among previously underserved farming communities.
Threat:
Fraud and mismanagement
Fraud and mismanagement pose significant threats to the agriculture insurance market. False claims, exaggerated losses, and deliberate misrepresentation of crop yields or livestock numbers can lead to substantial financial losses for insurers. These fraudulent activities can result in higher premiums for honest farmers and undermine the sustainability of insurance programs. Additionally, poor management practices by farmers, such as inadequate pest control or improper irrigation, can increase the likelihood of claims, potentially leading to disputes with insurers. The challenge of accurately assessing and verifying claims in remote agricultural areas further complicates this issue, potentially eroding trust between insurers and policyholders.
Covid-19 Impact:
The COVID-19 pandemic disrupted agricultural supply chains and labor availability, increasing risks for farmers and highlighting the importance of insurance. It accelerated the adoption of digital technologies in insurance processes, from policy sales to claims assessment. The pandemic also raised awareness about the need for comprehensive risk management in agriculture, potentially driving long-term growth in insurance adoption.
The multi-peril crop insurance (MPCI) segment is expected to be the largest during the forecast period
The multi-peril crop insurance (MPCI) segment is expected to dominate the agriculture insurance market due to its comprehensive coverage against various risks, including adverse weather, pests, and diseases. This type of insurance appeals to farmers seeking broad protection for their crops, making it a popular choice across different regions and farm sizes. Government support and subsidies for MPCI in many countries further drive its adoption. The segment's growth is also fueled by increasing awareness of climate-related risks and the need for financial protection against multiple threats. As agricultural risks become more complex and interrelated, MPCI's holistic approach to risk management continues to attract farmers, solidifying its position as the largest segment.
The customized coverage segment is expected to have the highest CAGR during the forecast period
The customized coverage segment in agriculture insurance is experiencing rapid growth due to increasing demand for tailored risk management solutions. This segment offers policies designed to meet the specific needs of individual farmers, considering factors such as crop type, location, farming practices, and risk profile. Advancements in data analytics and remote sensing technologies enable insurers to offer more precise and flexible coverage options. Customized policies can include innovative features like index-based insurance or parametric triggers, appealing to tech-savvy farmers and those in niche agricultural sectors. This personalized approach improves the relevance and effectiveness of insurance products, driving higher adoption rates and customer satisfaction.
Region with largest share:
The North America region is anticipated to be the largest during the forecast period. This dominance is due to its well-established agricultural sector and strong government support for crop insurance programs. The United States, in particular, has a comprehensive federal crop insurance program that subsidizes premiums, making insurance more accessible to farmers. The region's advanced farming practices, high awareness of risk management tools, and large-scale commercial farming operations contribute to widespread insurance adoption. Additionally, the frequent occurrence of natural disasters and the high value of agricultural output in North America drive the demand for robust insurance coverage, solidifying the region's position as the largest market for agriculture insurance.
Region with highest CAGR:
The Asia Pacific region is anticipated to witness lucrative growth during the forecast period driven by several factors. Rapid population growth and increasing food demand are putting pressure on agricultural productivity, highlighting the need for risk management tools. Governments in countries like India and China are actively promoting agriculture insurance through subsidies and awareness programs. The region's vulnerability to climate change and natural disasters is also driving insurance adoption. Furthermore, the large population of smallholder farmers presents a vast untapped market for microinsurance products. As awareness grows and distribution channels improve, the Asia Pacific region is expected to register the highest growth rate over the projection period.
Key players in the market
Some of the key players in Agriculture Insurance Market include Allianz SE, American Financial Group, Inc. (AFG), AXA, Chubb, Fairfax Financial Holdings Limited, Great American Insurance Company, ICICI Lombard General Insurance Company Limited, Munich Re Group, PICC Group, QBE Insurance Group Ltd., Agriculture Insurance Company of India Limited, Sompo International Holdings Ltd, Swiss Re, and Zurich Insurance Group.
Key Developments:
In April 2024, Allianz Group announced today the completion of the disposal of its 51% stake in Allianz Saudi Fransi to Abu Dhabi National Insurance Company (ADNIC), a multiline regional insurance provider based in the United Arab Emirates and listed on the Abu Dhabi Stock Exchange.
In June 2023, AXA is committed to transitioning its insurance and reinsurance underwriting portfolios to net-zero greenhouse gas (GHG) emissions by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100.
Types Covered:
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Livestock Mortality Insurance
• Farm Property Insurance
• Aquaculture Insurance
• Weather Index Insurance
Coverage Types Covered:
• Comprehensive Coverage
• Basic Coverage
• Customized Coverage
Distribution Channels Covered:
• Direct Sales
• Brokers and Agents
• Online Platforms
• Bancassurance
• Government Subsidies
• Other Distribution Channels
End Users Covered:
• Small Farms
• Large Commercial Farms
• Cooperatives
• Agricultural Corporations
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Agriculture Insurance Market, By Type
5.1 Introduction
5.2 Multi-Peril Crop Insurance (MPCI)
5.3 Crop-Hail Insurance
5.4 Livestock Mortality Insurance
5.5 Farm Property Insurance
5.6 Aquaculture Insurance
5.7 Weather Index Insurance
6 Global Agriculture Insurance Market, By Coverage Type
6.1 Introduction
6.2 Comprehensive Coverage
6.3 Basic Coverage
6.4 Customized Coverage
7 Global Agriculture Insurance Market, By Distribution Channel
7.1 Introduction
7.2 Direct Sales
7.3 Brokers and Agents
7.4 Online Platforms
7.5 Bancassurance
7.6 Government Subsidies
7.7 Other Distribution Channels
8 Global Agriculture Insurance Market, By End User
8.1 Introduction
8.2 Small Farms
8.3 Large Commercial Farms
8.4 Cooperatives
8.5 Agricultural Corporations
9 Global Agriculture Insurance Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Allianz SE
11.2 American Financial Group, Inc. (AFG)
11.3 AXA
11.4 Chubb
11.5 Fairfax Financial Holdings Limited
11.6 Great American Insurance Company
11.7 ICICI Lombard General Insurance Company Limited
11.8 Munich Re Group
11.9 PICC Group
11.10 QBE Insurance Group Ltd.
11.11 Agriculture Insurance Company of India Limited
11.12 Sompo International Holdings Ltd
11.13 Swiss Re
11.14 Zurich Insurance Group
List of Tables
1 Global Agriculture Insurance Market Outlook, By Region (2022-2030) ($MN)
2 Global Agriculture Insurance Market Outlook, By Type (2022-2030) ($MN)
3 Global Agriculture Insurance Market Outlook, By Multi-Peril Crop Insurance (MPCI) (2022-2030) ($MN)
4 Global Agriculture Insurance Market Outlook, By Crop-Hail Insurance (2022-2030) ($MN)
5 Global Agriculture Insurance Market Outlook, By Livestock Mortality Insurance (2022-2030) ($MN)
6 Global Agriculture Insurance Market Outlook, By Farm Property Insurance (2022-2030) ($MN)
7 Global Agriculture Insurance Market Outlook, By Aquaculture Insurance (2022-2030) ($MN)
8 Global Agriculture Insurance Market Outlook, By Weather Index Insurance (2022-2030) ($MN)
9 Global Agriculture Insurance Market Outlook, By Coverage Type (2022-2030) ($MN)
10 Global Agriculture Insurance Market Outlook, By Comprehensive Coverage (2022-2030) ($MN)
11 Global Agriculture Insurance Market Outlook, By Basic Coverage (2022-2030) ($MN)
12 Global Agriculture Insurance Market Outlook, By Customized Coverage (2022-2030) ($MN)
13 Global Agriculture Insurance Market Outlook, By Distribution Channel (2022-2030) ($MN)
14 Global Agriculture Insurance Market Outlook, By Direct Sales (2022-2030) ($MN)
15 Global Agriculture Insurance Market Outlook, By Brokers and Agents (2022-2030) ($MN)
16 Global Agriculture Insurance Market Outlook, By Online Platforms (2022-2030) ($MN)
17 Global Agriculture Insurance Market Outlook, By Bancassurance (2022-2030) ($MN)
18 Global Agriculture Insurance Market Outlook, By Government Subsidies (2022-2030) ($MN)
19 Global Agriculture Insurance Market Outlook, By Other Distribution Channels (2022-2030) ($MN)
20 Global Agriculture Insurance Market Outlook, By End User (2022-2030) ($MN)
21 Global Agriculture Insurance Market Outlook, By Small Farms (2022-2030) ($MN)
22 Global Agriculture Insurance Market Outlook, By Large Commercial Farms (2022-2030) ($MN)
23 Global Agriculture Insurance Market Outlook, By Cooperatives (2022-2030) ($MN)
24 Global Agriculture Insurance Market Outlook, By Agricultural Corporations (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We provide a free 15% customization on every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
Note: This customization is absolutely free until it falls under the 15% bracket. If your requirement exceeds this a feasibility check will be performed. Post that, a quote will be provided along with the timelines.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
