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Understand the influence of COVID-19 on the Agriculture Insurance Market with our analysts monitoring the situation across the globe.

Global Statistics Representing Agriculture Insurance Market Scenario

Farmers can purchase agriculture insurance to protect crops and agriculture-related products against natural disaster such as flood, drought and hail or the loss of revenues due to declines in the prices of agriculture commodities. Agricultural risks affect farmers as well as the whole agribusiness value chain. Further, they apply to livestock, bloodstock, forestry, aquaculture, and greenhouses.

Agriculture insurance can be a key step towards battling and eradicating poverty. Natural disasters are unpredictable, and in the event of a disaster, farmers who have made significant investments in agriculture suffer massive losses and often incur debts. In such a case, if the farmer invests in agriculture insurance, he/she can recover losses from the insurer. With compensation, farmers are in a place to reinvest in farming and other agricultural activities.

The global agriculture insurance market is expected to grow at a CAGR of 2.8% during the forecast period (2019–2026).

Market Dynamics

Greater commercialisation of farming / contract farming worldwide is the major growth factor driving the growth of the global agriculture insurance market. Uncertainty of nature, government support for agricultural activities and increasing traction of risk assessment and management are some of the other factors contributing to the growth of the global agriculture insurance market.

The implementation of developed technologies in farming requires massive investments. Investor/farmers who have substantial interest in the implementation of technology are likely to have borrowed from a bank to gather the funds. Banks with intense concentration of loan assets in farming are prone to considerable losses through systemic risk. An example of risk is unfavourable weather conditions. Thus, contract farming arrangements have come in use recently; under these agreements, insurance is one of many services provided, along with inputs. Furthermore, the increasing incidences of unfavourable weather events are expected to surge the demand for insurance coverage of losses. The insurance industry is mindful of increasing exposure and is, subsequently, exploring new financial instruments to better manage this exposure. However, lack of standardized systems and low awareness about the concept of agriculture insurance act as prominent restraints for the global agriculture insurance market.

Agriculture insurance companies are launching new schemes and adopting new strategies in the insurance sector alongside significant investments, which is expected to drive market growth in the years to come.

Market Segmentation

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 as managed crop hail insurance, multi-peril crop insurance, greenhouse insurance, aquaculture insurance, and forestry insurance. The crop insurance segment is forecast to witness rapid growth in the coming years, due to the numerous initiatives being implemented by governments to protect farmers.

On the basis of organisation, the market has been segmented as government and private organisations. The government organisation segment is projected to hold the largest market share during the forecast period, due to the various supportive programs being launched by governments around the globe.

Regional Analysis

North America is expected to be a prominent market for agriculture insurance. The progressive insurance market environment, combined with the growing need for new and innovative insurance plans, is fuelling market growth in North America. Europe is expected to be the second largest market for agriculture insurance and reinsurance. Increasing awareness about the benefits of agriculture insurance drives market growth in the region.

Asia Pacific is a prominent region in the agriculture insurance market as it is a high exposure region in terms of natural hazards such as typhoons, floods, landslides, droughts, earthquakes, volcanic eruptions, and tsunamis. Weather-related risks affect crop yields, livelihoods and assets, and the personal safety of vulnerable groups across the region. Agricultural insurance systems in Asia Pacific range from major public-sector programmes of India and the Philippines to public-private partnerships. In India, The Pradhan Mantri Fasal Bima Yojana (PMFBY) is expected to increase its presence since the government has allocated USD 90 billion (INR 9000 crore) for the scheme in 2017–18.

The agriculture insurance market has huge potential in the LMAEA region, especially in countries of the central Maghreb, Algeria, a region renowned for its agricultural specialty.

Key Players

A few noteworthy players engaged 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.

Global Agriculture Insurance Market

By Product

  • Managed Crop Hail Insurance
  • Multi-Peril Crop Insurance
  • Greenhouse Insurance
  • Aquaculture Insurance
  • Forestry Insurance
  • Others

By Organization

  • Government
  • Private

 By Geography

  • North America
  • Europe
  • Asia-Pacific

Why Buy This Report?

Globally, agricultural insurance is strategically important for eradicating extreme poverty and boosting shared prosperity. According to the World Bank Group, there are an estimated 500 million smallholder farming households – representing 2.5 billion people – relying on agricultural production for their livelihoods.

Therefore, promoting agriculture insurance to the crowd-in private sector, enhancing access to suitable financial services to farmers – particularly smallholders – and agricultural small and medium enterprises (SMEs) as a way to increase agricultural productivity and income are extremely important.

This report offers key insights pertaining to the agriculture insurance market with emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.

  • Competitor Analysis
  • Market Concentration of Top Five Players
  • Potential Ventures

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