In many countries around the globe, governments strive to help farmers produce more to ensure self-reliance in food production. To encourage farmers to opt for unconventional or risky agriculture production methods, governments often offer subsidies on insurance premiums. Farmers who buy insurance premiums for agriculture businesses have a big advantage as they are in place to recover their losses in crops, animals and farm inputs.
The global agriculture insurance market has been segmented on the basis of product, organization, and geography.
On the basis of product, the market has been segmented into managed crop hail insurance, multi-peril crop insurance, greenhouse insurance, aquaculture insurance, and forestry insurance. The multi-peril crop insurance segment is projected to hold the largest market share during the forecast period (–2026), owing to the fact that crops are prone to the highest losses due to natural disasters.
On the basis of organization, the market has been segmented into government and private organizations. The private organization's segment is expected to grow with the highest CAGR over the forecast period (–2026).
The agriculture insurance market in Europe, which is well supported by government subsidies, has attained maturity. North America is expected to grow at a considerable growth rate as the region has the highest agricultural premiums, followed by Asia and Europe.
Asia Pacific is expected to witness huge growth in the agriculture insurance market over the forecast period (2019–2026). As per estimations by Moneycontrol.com, in India, crop insurance registered 288% growth in 2017.
In the LAMEA region, the agricultural insurance market has vast potential for growth, which is yet untapped. The agricultural sector has always held special significance in the economies of this region.
Some of the prominent players in the global agriculture insurance market include Allianz SE, American Agricultural Insurance Company, Aries Argo Limited, HDFC ERGO General Insurance Company Limited, Philippines Crop Insurance Corporation, Rural Community Insurance Company, Tata AIG General Insurance Company Limited., The People's Insurance Company of China and Universal Sompo General Insurance Co. Ltd.
Collaboration, acquisition, digitalization of insurance services and product upgrade are some of the main strategies that have been in effect in the marketplace.
Global Agriculture Insurance Market