Global Crop Insurance Market Size By Type (Crop Yield Insurance, Crop Revenue Insurance), By Coverage (Multi-peril Crop Insurance (MPCI), Crop-hail Insurance), By Distribution Channel (Banks, Insurance Companies), By Geographic Scope And Forecast

Crop Insurance Market Size And Forecast

Crop Insurance Market size was valued at USD 36.37 Billion in 2024 and is projected to reach USD 68.28 Billion by 2030, growing at a CAGR of 8.19% from 2024 to 2031

• Crop insurance is a policy that protects farmers and agricultural producers from potential losses caused by a variety of factors, including natural disasters (such as droughts, hailstorms, floods, and fires), diseases, pest infestations, drops in agricultural commodity prices, and other unforeseen events. Many countries now require farmers who receive market crop loans to carry crop insurance coverage. Crop insurance is becoming more popular worldwide as farmers become more aware of its benefits and inexpensive premiums become more widely available. Crop insurance has two primary types crop-yield insurance and agricultural revenue insurance.
• The primary purposes of this insurance are to financially assist farmers who have already suffered crop loss or damage as a result of natural disasters, to stabilize farmers’ incomes in order to ensure long-term farming and to encourage farmers to adopt cutting-edge and successful agricultural practices. Crop insurance is vital for farmers and agricultural producers since it covers losses caused by local tragedies or changes in weather conditions, as well as damaged standing crops and harvested crops. It also covers crop losses caused by hazards associated with sowing, planting, and seed germination.
• The growing demand for food security is predicted to dramatically increase insurance policy sales. Crop investments are driven by agricultural commercialization, which increases demand for risk analysis and accelerates the growth of the crop insurance market. Furthermore, the fast emergence of new and invasive insects and viruses that destroy crops is driving market growth. Several governments are also launching steps to promote the agriculture industry, hence supporting market growth. Crop insurance improves agricultural financial stability by promoting knowledge and assisting farmers in understanding insurance, hence supporting industry growth.

Global Crop Insurance Market Dynamics

The key market dynamics that are shaping the global crop insurance market include

Key Market Drivers

• Increasing Digital InitiativesCrop insurance market growth is being driven by increased use of digital initiatives and the introduction of cutting-edge technologies. Satellites, drones, the Internet of Things (IoT), artificial intelligence, mobile applications, and web-based platforms are all critical technologies for improving crop insurance. These modern techniques make it easier to detect unhealthy crops, predict the weather accurately, and save detailed crop and micro-level land information for harvesting. By efficiently minimising numerous uncertainties and dangers, these technologies considerably improve crop insurance effectiveness. As a result, the market grows as digital efforts and innovative technology gain traction in agriculture.
• Government Subsidies In recent years, governments in developing countries have increased their support for commercial crop insurance programmes, recognising that widespread adoption in the global market frequently demands subsidies. Targeted subsidies for specific groups of farmers could result in a higher benefit-to-cost ratio, even though total costs are likely to surpass benefits. Various government measures are intended to remove impediments and support the development of agricultural weather insurance.
• Technological Advancements The increased use of advanced farming techniques, such as precision planting and data-driven practices, is boosting demand for novel, specialised insurance solutions. Advanced technologies provide reliable crop monitoring while also allowing insurers to estimate losses swiftly and efficiently. Disease identification technology also enables early reimbursement for disease-related losses. Additionally, satellite data integration improves the precision of crop health and weather condition tracking, allowing for more precise damage assessment and claims processing. Mobile applications make it easier for farmers to enrol in insurance, submit claims, and communicate with insurers.
• Rising awareness among farmers Farmers are increasingly recognising the benefits of crop insurance, which is driving a surge in demand for insurance products that protect against a broader range of risks. This increased knowledge is driving the growth of the crop insurance market, as farmers seek complete coverage to protect their livelihoods from unpredictable weather, pests, diseases, and other possible hazards. As a result, insurers are creating increasingly diverse and personalised insurance products to address the changing needs of the agriculture sector.

Key Challenges

• High Cost of Crop Insurance Crop insurance demand is projected to be limited due to its high cost. Farm owners with low revenue from agricultural activities may struggle to afford crop insurance rates, limiting the use of these services. In poor countries or those facing socioeconomic issues, farm owners and crop producers’ inability to pay initial premium levels further impedes crop insurance acceptance.
• Lack of Infrastructure Crop insurance availability in underdeveloped nations is frequently limited due to low infrastructure, financial resources, and awareness. These challenges limit insurance penetration, leaving many smallholder farmers vulnerable to a variety of dangers. Without the appropriate support structures and information, many farmers are unable to get or buy insurance products, making them more vulnerable to bad events such as extreme weather, pests, and illnesses.
• Complex claim settlement proceduresComplex claim settlement procedures and a lack of trust in insurance providers can deter farmers from using insurance products. Farmers may be hesitant to participate in insurance programmes due to concerns about receiving timely and equitable compensation. Building confidence requires open communication and swift claims management. Insurance companies may boost farmer confidence by streamlining claim procedures and assuring clear, honest interactions, resulting in increased acceptance of insurance products and more reliable protection against agricultural risks.

 Key Trends

• Coverage Expansion Crop insurance is becoming increasingly popular as a way of managing financial risks for farmers. Governments and insurance companies are broadening coverage options to encompass additional crops, locations, and forms of risk. This extension intends to provide farmers with adequate insurance coverage against a wide range of risks, including extreme weather occurrences, pests, and market volatility.
• Parametric Insurance Products Parametric insurance products are gaining traction in the crop insurance industry. In contrast to typical indemnity-based insurance, parametric insurance pays out depending on specified triggers, such as rainfall or temperature thresholds, rather than real crop losses. This technique provides faster payouts and lowers administrative expenses, making insurance more accessible to smallholder farmers while lessening the financial load on governments.
• Public-Private Partnerships Public-private partnerships are becoming a major trend in the crop insurance industry. Governments are cooperating with private insurers to create and administer crop insurance programs that combine public subsidies with private sector expertise. These collaborations use the assets of both sectors to improve the affordability, accessibility, and sustainability of crop insurance programs, benefiting both farmers and taxpayers.
• Climate Change Adaptation Climate change is having an increasing impact on agricultural productivity and enhancing weather-related risks for farmers. In response, there is a rising emphasis on climate change adaptation in the crop insurance industry. Insurers are creating new risk management strategies and insurance products to address the evolving issues provided by climate change, such as heat stress, protracted droughts, and altered precipitation patterns.

Global Crop Insurance Market Regional Analysis

Here is a more detailed regional analysis of the global crop insurance market

North America

• North America emerges as a dominant force in the global agriculture insurance market, poised for further expansion in the coming years. The region’s anticipated growth stems from multiple factors, including burgeoning demand from emerging economies and a heightened recognition among consumers regarding the significance of robust insurance and risk management frameworks.
• Additionally, the North American market benefits from local manufacturers’ increased investments in state-of-the-art technology, amplifying its competitive edge.
• Nevertheless, North America’s agricultural landscape presents a unique dynamic characterized by abundant output relative to domestic food requirements. This surplus is partly a consequence of extensive grazing in arid regions with low agricultural yields. Consequently, a substantial portion of the agricultural produce is channeled towards export markets, underlining North America’s pivotal role in global food supply chains. This intricate balance between domestic consumption and international trade underscores the region’s strategic significance within the agriculture sector, shaping its trajectory within the broader insurance market landscape.

Asia-Pacific

• The Asia-Pacific region, particularly countries like China and India, stands at the forefront of the global crop insurance market’s growth trajectory. India, with its vast expanse of arable land and significant reliance on agriculture for employment and economic sustenance, has recognized the pressing need for robust crop protection mechanisms. The country’s status as a major rice exporter underscores its pivotal role in global food security.
• However, India’s agricultural landscape faces escalating risks from unpredictable weather patterns, as evidenced by substantial crop losses due to climate emergencies in recent years. In response, the Indian government has intensified efforts to promote crop insurance awareness among farmers and enhance the accessibility of insurance products through digitalization initiatives.
• Similarly, China’s expansive agricultural sector and increasing food demand position it as a key player in driving growth within the crop insurance market. The government’s proactive support measures and policies geared towards bolstering agricultural resilience further fuel the market’s potential expansion.
• As China grapples with similar challenges of climate variability and ensuring agricultural sustainability, the emphasis on comprehensive crop insurance solutions becomes paramount. With concerted efforts aimed at enhancing insurance penetration and coverage, both India and China are poised to play pivotal roles in shaping the future landscape of crop insurance within the Asia-Pacific region, safeguarding agricultural livelihoods, and fostering economic stability amidst evolving environmental uncertainties.

Global Crop Insurance MarketSegmentation Analysis

The Crop Insurance Market is Segmented based on Type, Coverage, Distribution Channel And Geography.

Crop Insurance Market, By Type

• Crop Yield Insurance
• Crop Revenue Insurance

Based on Component, the market is bifurcated into Crop Yield Insurance, Crop Revenue Insurance. Crop yield insurance ensures the yield of agricultural produce. Crop insurance providers will pay farmers an indemnity if their yield falls below the stipulated threshold. Crop yield insurance protects against hail, fire, wind, and other risks such as drought, excess moisture, and excess water from spring until harvest. Crop revenue insurance protects the producer’s income during periods of poor prices and yields for an insurable crop. Regardless of the rationale, it assists farmers in protecting their revenues against unexpected or severe variations in crop prices.

Crop Insurance Market, By Coverage

• Multi-peril Crop Insurance [MPCI]
• Crop-hail Insurance

Based on Coverage, the market is segmented into Multi-Peril Crop Insurance (MPCI) and Crop-Hail Insurance. Multi-peril crop insurance (MPCI) protects against agricultural losses due to a variety of variables, including harmful weather such as hail, frost, damaging wind, drought, flooding, and many more; crop diseases, fire, and insect damage. In addition to the risks covered by the basic crop insurance policy’s loss of yield coverage, MPCI provides a combination package.

According to the Insurance Information Institute, more than 90% of farmers and agricultural producers who ensure their crops choose multi-peril crop insurance. Crop-hail insurance, on the other hand, solely covers crop losses caused by hail, which can entirely destroy crops in a specific area of a farm.

Crop Insurance Market, By Distribution Channel

• Banks
• Insurance Companies
• Brokers/Agents

Based on Distribution Channel, the market is segmented into banks, insurance companies, brokers/agents, and others. Farmers and agricultural producers can get crop insurance from banks, which provide consulting and expert services as well as local crop insurance experience. Crop insurance firms are financial institutions (both private and public) of varying sizes that provide insurance coverage to farmers for crop losses caused by a variety of factors. In 2021, insurance companies controlled the industry, accounting for the biggest market share due to various insurance plans, policies, and services.

Crop Insurance Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of regional analysis, the Global Crop Insurance Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. North America is the leading region in the Global Crop Insurance Market. By obtaining prestigious crop insurance coverage, farmers and agricultural producers in the United States want to increase and maintain economic crop production. Additionally, insurers are developing their present products and educating agricultural producers to ensure that the food and fiber crops grown in the area are as safe as possible for human consumption. However, Asia-Pacific is growing with a higher CAGR during the forecasted period

Key Players

The “Global Crop Insurance Market” study report will provide useful information, with a focus on the global market. The major players in the market are Agriculture Insurance Company of India Limited, Sompo International Holdings Ltd, ICICI Lombard General Insurance Company Limited, The Philippine Crop Insurance Corporation, and Great American Insurance Company. The competitive landscape section also contains important development strategies, market share, and market ranking analysis for the aforementioned competitors worldwide. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Crop Insurance Market Recent Developments

• In May 2022, the Philippines began its first public-private collaboration on crop insurance, with funding from the Asian Development Bank, a move that has the potential to revolutionise the country’s agriculture insurance business.
• In October 2018, Slant Range, Inc., a major provider of remote sensing and analytics for agricultural, collaborated with Microsoft. This agreement will provide the worldwide agriculture market a new set of sophisticated and scalable aerial measurement and data solutions.
• In December 2018, IBM Corporation collaborated with Hello Tractor to launch an advanced agricultural analytics and decision-making tool that will help farmers gain access to relevant information, such as forecasted weather data, and apply appropriate fertiliser using remote sensing and IoT data.
• In December 2020, DCIS Diversified Crop Insurance Services, a subsidiary of CGB Enterprises, Inc., has been acquired by Sompo International Holdings Ltd. (SIH), a Bermuda-based specialty provider of property and casualty insurance and reinsurance (CGB)

Report Scope

Research Methodology of Market Research

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Ind