Crop Insurance Market to Reach $ 88 billion, Globally, by 2032 at 8.7% CAGR: Allied Market Research
Allied Analytics LLP
9 min read
Allied Analytics LLP
One major growth factor propelling the crop insurance market is the increase inthe frequency and severity of extreme weather events due to climate change. As these events, such as droughts, floods, and storms, pose substantial risks to agricultural output, farmers are increasingly recognizing the value of insurance coverage to mitigate financial losses. Consequently, the heightened awareness of climate-related risks and the need for risk management tools has been a significant driver behind the expansion of the crop insurance market, fostering greater demand for comprehensive coverage options among farmers worldwide.
Wilmington, Delaware, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, “Crop Insurance Market by Coverage (Multi-Peril Crop Insurance (MPCI) and Crop-hail Insurance), and Distribution Channel (Banks, Insurance Companies, Brokers/Agents, and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032”. According to the report, the global crop insurance market size was valued at $ 39.1 billion in 2022 and is projected to reach $ 88 billion by 2032, growing at a CAGR of 8.7% from 2023 to 2032.
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Crop insurance is a type of protection policy, which covers agricultural producers against unexpected loss of projected crop yields. Although crop insurance can be expensive, it provides flexible coverages based on the type of crop, size of land, and seasonal imbalances in the particular region. Crop insurance providers are enhancing the awareness & benefits of crop insurance plans and educating the buyers about available products and services, which fuel the growth of the crop insurance market.
Prime Determinants of Growth
The crop insurance market is expected to witness notable growth owing to an increase in digital initiatives in crop insurance and rise in government support in the form of subsidies. Moreover, the expansion of the crop insurance product line and untapped potential of emerging economies are expected to provide lucrative opportunities for the growth of the market during the forecast period. On the contrary, low awareness of insurance & high cost of premiums limit the growth of the crop insurance market.
Report Coverage & Details:
Report Coverage
Details
Forecast Period
2023–2032
Base Year
2022
Market Size in 2022
$ 39.1 billion
Market Size in 2032
$ 88 billion
CAGR
8.7%
No. of Pages in Report
325
Segments Covered
Coverage, Distribution Channel, and Region.
Drivers
Increase in digital initiatives in crop insurance Rise in government support in the form of subsidies
Opportunities
Low awareness of insurance & high cost of premiums
Restraints
Expansion of crop insurance product line Untapped potential of emerging economies
The multiple peril crop insurance (MPCI) segment to maintain its leadership status throughout the forecast period
Based on the coverage, the multiple peril crop insurance (MPCI) segment held the highest market share in 2022, accounting for more than two-thirds of the global crop insurance market revenue and is estimated to maintain its leadership status throughout the forecast period. This is because it offers broad coverage against various risks such as natural disasters, pests, and yield losses, providing comprehensive protection for farmers' crops throughout the growing season. It's popular because it covers a wide range of potential problems that can harm crops, giving farmers peace of mind against different risks. However, the crop-hail insurance segment is projected to manifest the highest CAGR of 11.1% from 2023 to 2032. This is because it specifically focuses on protection against hailstorms, which can cause sudden and severe damage to crops. With changing weather patterns and an increase in extreme weather events such as hailstorms, more farmers are seeking this specialized coverage to shield their crops from this specific risk, especially in regions prone to hail damage. As hail can swiftly devastate crops, this insurance's rapid growth is driven by the need for targeted and immediate protection against this specific threat.
The insurance companies segment to maintain its leadership status throughout the forecast period
By distribution channel, the insurance companies segment held the highest market share in 2022, accounting for nearly half of the global crop insurance market revenue. This is due to their direct engagement with farmers and their substantial reach. These companies offer diverse insurance products tailored to farmers' needs, providing direct access to coverage options and services. However, the brokers/agents segment is projected to manifest the highest CAGR of 11.1% from 2022 to 2032. This is owing to its personalized approach and increasing reliance on intermediaries for insurance guidance. Brokers and agents often work closely with farmers, offering personalized advice, explaining policy details, and helping them navigate through various insurance options. This personalized assistance fosters trust and enables farmers, especially in regions with lower awareness, to better understand and access suitable insurance products, thus driving the projected growth in this segment.
North America to maintain its dominance by 2032
By region, North America held the highest market share for more than two-fifths of the global crop insurance market in terms of revenue in 2022. This is due to its well-established agricultural practices and robust insurance infrastructure. The region has a long history of offering extensive crop insurance programs, backed by advanced technologies and strong government support, which encourages farmers to opt for insurance coverage. However, Asia-Pacific is expected to witness the fastest CAGR of 11.3% from 2023 to 2032. This is due to increase in awareness about the significance of crop insurance, particularly in emerging economies where agriculture plays a vital role. With farmers facing heightened risks from climate variability and natural disasters, governments and insurers are focusing more on expanding insurance coverage, utilizing technological advancements, and providing subsidies, all of which contribute to the projected rapid growth in Asia-Pacific during the forecast period.
Leading Market Players: -
Agriculture Insurance Company of India Limited (AIC)
American Financial Group, Inc.
Chubb
Fairfax Financial Holdings Limited
ICICI Lombard General Insurance Company Limited
PICC
QBE Insurance Group Limited
Sompo International Holdings Ltd
Tokio Marine HCC
Zurich
The report provides a detailed analysis of these key players in the global crop insurance market. These players have adopted different strategies such as product launch and agreement to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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Key Benefits for Stakeholders
This crop insurance market report provides a quantitative analysis of the crop insurance market segments, current trends, estimations, and dynamics of the crop insurance market forecast from 2023 to 2032 to identify the prevailing crop insurance market opportunity.
Crop insurance Market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the crop insurance market segmentation assists to determine the prevailing market opportunities.
Major countries in each region for the crop insurance market are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the crop insurance market players.
The crop insurance market report includes an analysis of the regional as well as global crop insurance market trends, key players, crop insurance market segments, application areas, and crop insurance market growth strategies.
Crop Insurance Market Key Segments:
By Distribution Channel:
Banks
Insurance Companies
Brokers/Agents
Others
By Coverage:
Multi Peril Crop Insurance (MPCI)
Crop-hail Insurance
By Region:
North America (U.S., Canada)
Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
LAMEA (Latin America, Middle East, Africa)
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