Global Agriculture Crop Insurance Market Analysis and Global Forecast 2022-2030

Market Overview

The global Agriculture Crop Insurance market size is projected to reach approximately $71.3 billion by 2030, at a CAGR of 8.2% from 2022 to 2030. Agricultural crop insurance is important because it safeguards against substantial revenue devaluation due to a decrease in agricultural commodities and revenue losses due to natural disasters such as hail, drought, disease, and wildlife. It also protects against fire damage, water damage, and pest infestation. The agricultural insurance industry, not only involves huge participation from diverse groups of actors but is also a major chunk of the agricultural sector. Several countries have also imposed mandatory norms for farmers availing crop loans in the market, which can only be taken if the farmer has crop insurance coverage.

COVID-19 Impact Analysis

The COVID-19 pandemic had a moderate influence on the crop insurance market, owing to widespread fear of the virus and unprecedented transportation restrictions, which have disrupted supply chains for selling commodities. Furthermore, a labour shortage for harvesting and supplying crops in the market is indirectly affecting the crop insurance market during a pandemic crisis. As a result, crop harvesting and supply issues reduce the demand for crop insurance. However, following the recovery from the COVID-19 pandemic, the crop insurance business is expected to thrive in the next years.

Agriculture Crop Insurance Market Dynamics

Rapid digital projects that predict the weather, detect unhealthy crops, save agricultural data, and micro-level land information for crop harvesting. As a result, the features supplied by technologies such as drones, satellites, artificial intelligence, Internet of Things (IoT), mobile applications, and other web-based platforms increase the global market need for crop insurance coverage. However, low crop insurance awareness and higher premium prices limit demand for crop insurance policies, hindering market expansion. The use of technologies such as satellites, remote sensing data, and artificial intelligence can aid in the registration of farmer information and position, and the collection of premiums and payment of claims. As a result, these factors are inclined to give favorable opportunities for market advancement during the forecast period.

Drivers

Ø  Increased focus on digital initiatives

The implementation of technology such as satellites, drones, the Internet of Things (IoT), artificial intelligence, mobile applications, and other web-based platforms is propelling the crop insurance market forward. Since these technologies enable the identification of damaged crops, weather forecasts, agricultural data storage, and micro-level information about the size and condition of land for crop harvesting. These enhanced features aid in the reduction of numerous unpredictable risks and increase the market efficacy of agriculture crop insurance. As a result, the expansion of the crop insurance market is fueled by an increase in digital efforts and a surge in the adoption of modern technology.

Restraint:

• Higher premium prices

As the prices of crop insurance policies increase, it’s been observed that demand for these products has decreased. Higher premiums may make it difficult for many farmers to purchase coverage because they are often already strapped for cash. This hinders the growth of the agriculture crop insurance market.

Global Agriculture Crop Insurance Opportunity:

• Expansion of agriculture crop insurance product line

Expansion of existing product lines is expected to provide an opportunity for the development of this market. Crop insurance providers offer value-added services to their customers, and they are developing new products and services by implementing new technologies. The implementation of technologies can help in registering information and location of farmers, collecting premiums, and paying out claims. Moreover, to enhance the smooth claim process and avoid manual claim settlement processes, insurers can implement technologies such as artificial intelligence, satellites, and remote sensing data. Agriculture crop insurance providers are expected to see expansion soon as new product lines will provide countless opportunities for these companies.

Agriculture Crop Insurance Market Segment Overview

By Coverage

Based on the Coverage, the Agriculture Crop Insurance market is segmented based on Multi-peril Crop Insurance (MPCI) and Crop-hail Insurance. The multi-peril crop insurance (MPCI) segment dominated the agriculture crop insurance industry and is expected to continue to do so during the projection period. This is due to a growth in demand for various and personalized crop insurance coverage, and the development of existing multi-peril crop insurance (MPCI) product offerings.

By Distribution Channel

Based on Distribution Channel, the global Agriculture Crop Insurance market has been divided into Banks, Insurance Companies, Brokers/Agents, and Others. The Insurance Companies segment is expected to dominate the Agriculture Crop Insurance market because of its strong distribution network. They can reach out to rural areas where the sale of crop insurance is higher as compared to the urban areas.

Global Agriculture Crop Insurance Market Share, by Segmentation

Regional Analysis

By region, the global Agriculture Crop Insurance market had divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America is projected to dominate the use of the Agriculture Crop Insurance market followed by the Europe and Asia-Pacific regions.

North America Market

North America dominates the agriculture crop insurances market in the US, the federal government spends more than $20,000 million a year on subsidies for farm businesses. In addition, nearly 39% of the nation’s 2.1 million farms receive subsidies, majorly to the largest producers of corn, soybeans, wheat, cotton, and rice.

Europe Market

The Europe region is anticipated to be the fastest-growing Agriculture Crop Insurance market. The population continues to increase and the demand for food is growing. The European Union is making effort to produce more food and become self-sufficient to feed its population. As a result, the Europe agricultural crop insurance market will continue to grow as the European Union seeks to support its farmers. The Europe agricultural crop insurance market is expected to expand at a compound annual growth rate (CAGR) of 6.9% during the forecast period, which will result in revenues of $2.42 billion by 2022.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have reached across the globe with diverse product portfolios. Companies such as Agriculture Insurance Company of India Limited (AIC), ICICI Lombard General Insurance Company Limited, PICC, Sompo International Holdings Ltd, and Zurich dominate the global Agriculture Crop Insurance market due to strategic developments and diversified regional presence. The players are adopting various strategies, such as expansion, product launches, and partnerships, to strengthen their market position and capture a large customer base.

Prominent Players:

• Diversified Crop Insurance Services
• Agriculture Insurance Company of India Limited (AIC)
• Farmers Mutual Hail
• American Financial Group Inc
• Chubb
• Fairfax Financial Holdings Limited
• Everest Re Group
• ICICI Lombard General Insurance Company Limited
• PICC
• QBE Insurance Group Limited
• Sompo International Holdings Ltd
• Tokio Marine
• Zurich

In June 2021, Zurich announced that crop insurance business, Rural Community Insurance Services (RCIS), had expanded its agriculture capabilities and connected to John Deere Operations Center, a farm data management program, via John Deere’s API Services.

Scope of the Report

Global Agriculture Crop Insurance Market, by Coverage

• Multi-peril Crop Insurance (MPCI)
• Crop-hail Insurance

Global Agriculture Crop Insurance Market, by Distribution Channel

• Banks
• Insurance Companies
• Brokers/Agents
• Others

Global Agriculture Crop Insurance Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Rest of the World

 

Parameters	Indicators
Market Size	2030: $71.3 Billion
CAGR	8.2% CAGR (2022-2030)
Base year	2021
Forecast Period	2022-2030
Historical Data	2020
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Coverage, Distribution Channel
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Diversified Crop Insurance Services, Farmers Mutual Hail, Agriculture Insurance Company of India Limited (AIC), American Financial Group Inc, Chubb, Fairfax Financial Holdings Limited, Everest Re Group, ICICI Lombard General Insurance Company Limited, PICC, QBE Insurance Group Limited, Sompo International Holdings Ltd, Tokio Marine, Zurich
Key Market Opportunities	Expansion of agriculture crop insurance product line
Key Market Drivers	Increased focus on digital initiatives

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Agriculture Crop Insurance market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Agriculture Crop Insurance market historical market size for the year 2020, and forecast from 2022 to 2030
• Agriculture Crop Insurance market share analysis at each product level
• Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.

• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Agriculture Crop Insurance market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.