Crop Insurance Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2022-2026

The crop insurance market share is expected to increase by USD 10.59 billion from 2021 to 2026, at a CAGR of 5.43%.

This crop insurance market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers crop insurance market segmentations by product (indemnity-based and index-based) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The crop insurance market report also offers information on several market vendors, including Agriculture Insurance Co. of India Ltd., American Financial Group Inc., American International Group Inc., AmTrust Financial Services Inc., AXA Group, Chubb Ltd., Groupama Assurances Mutuelles, ICICI Bank Ltd., Indian Farmers Fertiliser Cooperative Ltd. (IFFCO), QBE Insurance Group Ltd., Santam Ltd., Sompo Holdings Inc., The New India Assurance Co. Ltd., Tokio Marine Holdings Inc., and Zurich Insurance Co. Ltd. among others.

What will the Crop Insurance Market Size be During the Forecast Period?

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Crop Insurance Market: Key Drivers, Trends, and Challenges

Global warming causes frequent extreme weather conditions is notably driving the crop insurance market growth, although factors such as problems of moral hazard and adverse selection in crop insurance may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the crop insurance industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Crop Insurance Market Driver

Global warming causes frequent extreme weather conditions is one of the key drivers supporting the crop insurance market growth. According to the Goddard Institute for Space Studies (GISS) in the US, the world temperature increased by 33.62 degrees Fahrenheit in 2020 compared with the average temperature during 1951-1980. This increase in temperature has caused climatic changes globally. According to the National Oceanic and Atmospheric Administration of the US, researchers have found a strong correlation between climate change and extreme weather events. For reducing the risk of crops being damaged during these events, the demand for crop insurance has increased. Such increasing demand for crop insurance will drive market growth during the forecast period. 

Key Crop Insurance Market Trend

Digital initiatives in crop insurance is one of the key crop insurance market trends that is contributing to the market growth. Increased internet penetration and the use of mobile phones have facilitated the adoption of crop insurance. Internet connectivity helps crop producers reduce the costs of monitoring. Farmers can send pictures of crop conditions to their insurance companies. This also reduces the company's need for sending a person for monitoring. For instance, the Rice Insurance Application (RIA) in Indonesia enables farmers to send pictures to insurance providers. Satellite imagery is being used in the global crop insurance market to monitor field and weather conditions for forecasting rains and collecting data related to index-based insurance. Soil sensors can provide information related to the soil, such as moisture, pest, and nutrient content. By using analytics for the collected information, insurance companies can predict yield for any area. Such digital initiatives is driving the market growth.

Key Crop Insurance Market Challenge

Problems of moral hazard and adverse selection in crop insurance is one of the factors hindering the crop insurance market growth. Moral hazards, in the case of crop insurance, can occur when the farmer has few incentives to produce a good yield as he is protected by an insurance scheme. Adverse selection occurs when farmers who have fewer chances of getting an optimum yield tend to invest in crop insurance policies, thus reducing the profit margins of vendors. In both cases, the most affected scheme is indemnity-based insurance. It is insurance for certain items that have been insured by the policyholder. These schemes need to monitor the values of indexes such as the amount of rainfall or vegetation index, which cannot be manipulated either by the insurer or the insured. The monitoring thus becomes cheaper to administer, although adoption remains limited due to the lack of data. Such challenges will limit the market growth during the forecast period.

This crop insurance market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global crop insurance market as a part of the global specialized consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the crop insurance market during the forecast period.

Who are the Major Crop Insurance Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Agriculture Insurance Co. of India Ltd.
• American Financial Group Inc.
• American International Group Inc.
• AmTrust Financial Services Inc.
• AXA Group
• Chubb Ltd.
• Groupama Assurances Mutuelles
• ICICI Bank Ltd.
• Indian Farmers Fertiliser Cooperative Ltd. (IFFCO)
• QBE Insurance Group Ltd.
• Santam Ltd.
• Sompo Holdings Inc.
• The New India Assurance Co. Ltd.
• Tokio Marine Holdings Inc.
• Zurich Insurance Co. Ltd.

This statistical study of the crop insurance market encompasses successful business strategies deployed by the key vendors. The crop insurance market is concentrated and the vendors are deploying growth strategies such as maintaining agents for distributing crop insurance schemes and offering indemnity or index-based products that cover specific risks to compete in the market.

Product Insights and News

• Agriculture Insurance Co. of India Ltd. - Under the unified segment, the company offers Crop Insurance Business to the geography of India.
• Agriculture Insurance Co. of India Ltd. - The company offers crop schemes such as Weather Based Crop Insurance, Prathan Mantri Fasal Bima Yojana, Restructured Weather Based Crop Insurance and National Agricultural Insurance. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The crop insurance market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Crop Insurance Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the crop insurance market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Crop Insurance Market?

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32% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for the crop insurance market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The presence of large tracts of agricultural land and favorable climatic conditions will facilitate the crop insurance market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 resulted in the migration of laborers, which led to labor scarcity, which affected the harvesting of winter crops such as pulses and wheat adversely in the region. However, as of early 2021, with the gradual decrease in the number of COVID-19 cases, lockdowns were lifted, leading to the opening up of organizations, including insurance companies, and the introduction of many different policies and schemes for those who had incurred losses faced due to the COVID-19 pandemic. These factors will lead to the growth of the crop insurance market in the region during the forecast period.

What are the Revenue-generating Product Segments in the Crop Insurance Market?

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The crop insurance market share growth by the indemnity-based segment will be significant during the forecast period. Indemnity-based insurance protects the policyholder from losses incurred from a crop loss. In this type of insurance, the payment of claims is calculated based on the number of losses. This type of insurance is expensive to administer as the underwriting is done for farms. The farms need to be assessed for identifying the loss amount and indemnity. This insurance comprises the most popular types of crop insurance, namely MPCI and named peril insurance. MPCI is comprehensive insurance that covers most agricultural risks. This insurance is costly in terms of administrative charges as farm-level assessments must be made. Moreover, the governments of various countries are trying to support the adoption of MPCI by offering subsidies on the premium. Such government initiatives may drive the segment growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the crop insurance market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Crop Insurance Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive crop insurance market growth during the next five years
• Precise estimation of the crop insurance market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the crop insurance industry across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of crop insurance market vendors

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