Agriculture and Crop Insurance Market Size, Share, Growth, and Industry Analysis, By Type (MPCI, Hail), By Application (Agencies, Digital and Direct Channel, Brokers, Bancassurance), Regional Insights and Forecast To 2032

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AGRICULTURE AND CROP INSURANCE MARKET REPORT OVERVIEW

Global Agriculture and Crop Insurance Market size was forecasted to be worth USD 21.2 billion in 2024, expected to achieve USD 37.1 billion by 2033 with a CAGR of 6% during the forecast period.

A sort of insurance coverage known as crop insurance guard farmers against unanticipated losses in anticipated crop production. Despite its high cost, agriculture and crop insurance provides personalized coverages based on crop type, land size, and seasonal imbalances in the particular area. Agriculture and crop insurance providers are teaching customers about the products and services they offer as well as the benefits of purchasing crop insurance plans in order to maintain the growth of the crop insurance business.

Under the crop insurance system, a group of people with comparable risks pool their small contributions into a single fund which is then used to pay out compensation to people who suffer losses. The entire cost, a multiple of it, or a percentage of the anticipated crop income, for which premiums are paid, can be used to determine the insurance coverage. The difference between the guaranteed yield (threshold yield) and the actual yield determines the amount of compensable compensation that can be claimed. Once the precise loss in agricultural output has been established, claims are reimbursed.

COVID-19 IMPACT

"Market Growth Restrained by Pandemic due to Supply Chain Disruptions"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a major effect on the expansion of the international market for farm insurance. The execution of steps to restrict the virus's spread across multiple countries impeded the flow of agri-food products both locally and internationally, but did not affect the food supply chain. The farm insurance sector encountered unique difficulties throughout the pandemic. A greater focus on protocol and procedural changes, including digitization, data analytics, blockchain technology, and others, resulted from this worldwide environment, which pushed insurance businesses to adopt new technologies and solutions. The manufacturing and supply chain disruptions hurt market testing of compounds. Several countries in North America and Europe have experienced shutdowns due to the COVID-19 outbreak, which has forced several companies such as the automotive and aerospace industries to operate in a limited manner, significantly affecting market testing of compounds. Thus, the decline of the automotive industry has made the market testing of composites difficult in 2020. Composites are also used in the construction industry. Thus, it significantly contributes to the recovery of the economy and the entire construction industry. When the pandemic broke out, the sudden drop in passenger traffic negatively affected the demand for aircraft. Thus, the commercial aviation industry is expected to recover slowly. As travel demand is not expected to return to pre-COVID-19 levels until 2024, it is estimated that it will take a year for business to recover across all industries, affecting the market dynamics of the composite testing market in North America and Europe.

LATEST TRENDS

"Growing Number Of Small-Scale Farmers And Big And Minor Stakeholders In The Agriculture Sector Drive Market Growth"

A growing number of small-scale farmers and big and minor stakeholders in the agriculture sector are choosing insurance to cover potential losses and crop failure due to an increasing number of unusual climatic events and growing awareness of the availability of such coverage. Furthermore, in order to meet these needs, a number of insurance companies have recently expanded their respective service portfolios and capabilities. This is partially fueling market expansion, coupled with awareness campaigns to emphasize the value and benefits of agriculture insurance to farmers of all stripes. Another important aspect anticipated to sustain market income development is the government's increased assistance to farmers in protecting them against crop failure resulting from natural causes or disasters.

AGRICULTURE AND CROP INSURANCE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into MPCI, Hail.

• MPCI: Multi-peril crop insurance is a popular choice in many middle-income nations due to its extensive range of safeguards against a variety of risks and perils coverage, which offers an almost full indemnity against losses. With this type of insurance, farmers are protected against a range of dangers and uncertainties that could seriously harm their farming pursuits.

• Hail: This segment covers the hail insurance in the countries where the hail frequently observed.

By Application

Based on application the global market can be categorized into Agencies, Digital and Direct Channel, Brokers, Bancassurance.

• Agencies: This segment covers the private agencies which offers insurance or premiums to the farmers for the crop.

• Digital and Direct Channel: This segment covers the Digital and Direct Channel involved in the insurance policies of agriculture and crops for the farmers.

• Brokers: According to market forecasts, the crop insurance market's fastest-growing category will be brokers and agents. This is because of its individualized approach and growing reliance on middlemen to provide insurance advice. Farmers frequently have tight working relationships with brokers and agents, who provide them with individualized counsel, clarify policy specifics, and guide them through a variety of insurance possibilities. This individualized support builds confidence and makes it easier for farmers—especially those in less informed areas—to comprehend and obtain appropriate insurance products, which fuels the segment's anticipated expansion in the crop insurance market.

• Bancassurance: A bank and insurance business can offer their goods to the bank's customer base through a partnership known as bancassurance which includes both businesses stand to gain financially from this cooperation.

DRIVING FACTORS

"Growing Digitization Of Crop Insurance Projects And Crop Losses Brought On By Climate ChangeCould Spur Market Expansion"

One of the key driving factors in the global agriculture and crop insurance market growth is due to increasing globalization of climate change is predicted to fuel growth in the crop insurance sector. The previous few decades have seen a greater observable change in the climate. The main effects of global warming are more frequent floods worldwide, more frequent draughts, and other urgent issues that have a direct bearing on agricultural output. The weather is changing all the time and has been more unpredictable lately. The market expansion for crop insurance has been significantly fueled by the use of digital technologies. Modern instruments such as drones, remote sensing, satellite images, and data analytics are revolutionizing the way agricultural risks are evaluated and handled. By offering priceless insights on crop health, weather patterns, soil conditions, and other hazards, these technologies enable more precise risk assessment and underwriting. Moreover, digital projects provide data in real-time or almost real-time, which enables insurers to track crop conditions, recognize hazards, and verify claims more quickly. For example, satellite photography can analyze the level of damage caused by natural disasters like floods or droughts, discover anomalies, and offer precise information on crop development. High-resolution photographs of fields can be taken by drones fitted with sensors, which helps with crop health analysis and the early detection of possible dangers. Throughout the projection period, there should be lucrative prospects for the agriculture insurance market to grow thanks to awareness efforts highlighting the value and benefits of the product.

"Increasing Growing Digital Initiatives driving the growth of the market "

Another driving factor in the global agriculture and crop insurance market is the introduction of cutting-edge technologies and the increasing use of digital initiatives are driving the agriculture and crop insurance market growth. Crop insurance is greatly improved by innovative technologies such as satellite, drones, the Internet of Things, artificial intelligence, mobile apps, and web-based platforms promoting market expansion. These sophisticated characteristics efficiently reduce a variety of uncertainties and hazards by enabling the detection of damaged crops, precise weather forecast, extensive data storage connected to crops, and micro-level land information for harvesting. Consequently, the market for crop insurance gains efficacy and scale due to the proliferation of digital projects and the extensive integration of cutting-edge technologies in the farming industry.

RESTRAINING FACTORS

"Unpredictability In The Weather And Politics and high cost premiums Potentially Impede Market Growth"

One of the key restraining factors in the global agriculture and crop insurance market is that Crop insurance frequently depends on the cooperation of private insurers, strong regulatory frameworks, and government help. Effective crop insurance program creation and implementation can occasionally be hampered by political factors. Fue to climate change, the predictions of crop loss accuracy may become more difficult, which could reduce the effectiveness of insurance models. The upcoming growth of the agricultural and crop insurance market may be hampered due to high cost of premiums and the incapacity of this insurance to reach marginal farmers.

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AGRICULTURE AND CROP INSURANCE MARKET REGIONAL INSIGHTS

"North America Dominating the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Because of the rise in the amount of cropped land on North American cropping farms, the region is leading the worldwide crop insurance industry. The goal of American farmers and ranchers is to secure significant crop insurance coverage in order to grow and sustain successful crop production. In addition, insurance companies are growing their product lines and training farmers in order to guarantee the highest level of safety for food and fiber crops grown for local consumption. The North American region held the greatest share in 2022 and is expected to maintain a significant agriculture and crop insurance market share by 2032. The government's initiatives to improve the insurance industry's infrastructure and the local economy's improvement are the factors causing expansion.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The agriculture and crop insurance market are significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative design, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Top Agriculture and Crop Insurance Companies

• PICC (China)
• Zurich (Switzerland)
• Chubb (Switzerland)
• Sompo (Japan)
• QBE (Australia)
• China United Property Insurance (China)
• Agriculture Insurance Company of India (India)
• AXA (France)
• American Financial Group (U.S.)
• Everest Re Group (U.S.)
• Tokio Marine (Japan)
• Prudential (U.S.)
• Farmers Mutual Hail (U.S.)
• New India Assurance (India)
• SCOR (France)

INDUSTRIAL DEVELOPMENT

October 2022: HDFC ERGO, has collaborated with a top agritech startup, nurture.farm. Together, we hope to empower farmers and provide the agricultural community with sustainable results by strengthening and broadening the range of insurance products that HDFC ERGO offers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.