Global Crop Insurance Market Report and Forecast 2024-2032

Global Crop Insurance Market Outlook

The global crop insurance market attained a value of about USD 43.12 billion in 2023. The market is further expected to grow in the forecast period of 2024-2032 at a CAGR of 6% to reach nearly USD 73.17 billion by 2032.

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Rising Investments in Crops and the Surging Prevalence of Various Pest Attacks Boosting the Market for Crop Insurance

The commercialisation of farming is leading to higher financial investments in crops, consequently increasing the demand for risk management, therefore augmenting the market growth for crop insurance. Moreover, the increasing prevalence of novel and foreign pests and diseases, which can be fatal to crops, is surging the demand for crop insurance, hence boosting the market growth. In addition, the integration of technologies such as machine learning (ML) in crop management to detect unexpected occurrences in arable land and protect crops is aiding the market growth. The technologies can also predict the yield of crops to highlight the risk and opportunity for both farmers and agri-stakeholders. This is why it is increasingly deployed in crop insurance, which is invigorating the industry growth.

Introduction of Various Favourable Governments’ Initiatives to Augment the Crop Insurance Industry

The increasing risk intensiveness of agriculture owing to reduced arable land, climate change, and high labour costs is hindering the growth of the agricultural sector, which is one of the most significant industries in countries such as the United States and India. Therefore, various governments are introducing favourable initiatives to support the agricultural sector, which is aiding the market growth. The promotion of the economic stability of agriculture through crop insurance to raise awareness of farmers to aid them in establishing insurance is propelling the growth of the crop insurance industry. For instance, the government of Canada and Saskatchewan announced enhancements to the 2021 Crop Insurance Program to provide farmers more coverage and ensure that they have the risk management tools for their growth and stability. Such initiatives are augmenting the market growth for crop insurance.

Crop Insurance: Market Segmentation

Crop insurance is a protection tool that protects farmers and agri-stakeholders from an unexpected loss that occurred due to unfavourable weather or pest control leading to crop failure by compensating them for preventing huge financial losses. It is crucial to promote sustainable production in the agricultural industry in order to ensure robust growth of the industry to meet growing food demands.

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The major coverages of crop insurance are:

• Multiple Peril Crop Insurance (MPCI)
• Crop-hail Insurance

The market can be broadly categorised on the basis of its distribution channels into:

• Banks
• Insurance Companies
• Brokers/Agents
• Others

The EMR report looks into the regional markets of crop insurance like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Growing Use of Artificial Intelligence and Drones in Crop Management to Bolster the Growth of the Crop Insurance Industry

The use of artificial intelligence (AI) solutions to customise crop insurance is propelling the growth of the crop insurance industry. Artificial intelligence can provide various agronomic insights such as water stress and crop health to determine yield and profit while leveraging crop cutting experiments (CCE). For instance, the Indian government leverages artificial intelligence solutions, CropIn’s SmartFarm and SmartRisk, to digitise farm management solutions and enable accurate and efficient execution of CCE to ensure timely clearance of insurance claims under its Pradhan Mantri Fasal Bima Yojana. Such measures are expected to fuel the market growth.

In addition, drones are increasingly used by crop insurers to collect data regarding damaged crops to mitigate the losses of farmers. Drone mapping software can be used to process and visualise the data to analyse crop loss effectively. This is increasing the adoption of drones in crop insurances, which is projected to fuel the market growth. In addition, drones can be employed for soil and field analysis, irrigation, and crop monitoring. Moreover, the rising use of analysis software to quantify results and indicate the damages, which make the process of crop insurance faster, more accurate, and more efficient, is providing further impetus to the growth of the crop insurance industry.

Key Industry Players in the Global Crop Insurance Market

The report presents a detailed analysis of the following key players in the global crop insurance market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Agriculture Insurance Company of India Limited
• Great American Insurance Company
• ICICI Lombard General Insurance Company Limited
• The Philippine Crop Insurance Corporation
• Sompo International Holdings Ltd.
• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

Key Highlights of the Report