Agricultural Insurance Market to Grow with a CAGR of 6.08% through 2030
The
Agricultural Insurance Market is growing rapidly, driven by rising climate
risks, government subsidies, parametric insurance adoption, technological
advancements, expanding public-private partnerships, and increasing farmer
awareness.
According to
TechSci Research report, “Agricultural Insurance Market - Global Industry
Size, Share, Trends, Competition Forecast & Opportunities, 2030F”,
the Global Agricultural
Insurance Market was valued at USD 42.32 Billion in 2024 and is expected to
reach USD 60.32 Billion by 2030 with a CAGR of 6.08% during the forecast period.
The global agricultural insurance
market is experiencing significant growth, driven by increasing climate
uncertainties, government initiatives, and technological advancements.
Agricultural insurance plays a crucial role in protecting farmers from financial
losses caused by natural disasters, pest outbreaks, and market fluctuations.
With the rising frequency of extreme weather events such as droughts, floods,
and hurricanes, farmers worldwide are facing heightened risks that threaten
food security and economic stability. Governments and private insurers are
working together to expand coverage, ensuring that both small and large-scale
farmers have access to financial protection. Additionally, advancements in
remote sensing, AI-driven risk modeling, and parametric insurance are
transforming the industry, making insurance more efficient and accessible to a
broader range of farmers.
One
of the key drivers of the agricultural insurance market is the increasing role
of government subsidies and public-private partnerships (PPPs). Many
governments provide financial support to farmers by subsidizing premiums,
making insurance more affordable. For example, the United States Federal Crop
Insurance Program (FCIP) offers substantial subsidies to encourage farmer
participation, while India's Pradhan Mantri Fasal Bima Yojana (PMFBY) has
significantly expanded agricultural insurance coverage in the country. Similar
initiatives are being implemented in China, Brazil, and African nations, where
government-backed insurance programs aim to improve financial resilience in
agriculture.
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market data Figures spread through xx Pages and an in-depth TOC on
"Global Agricultural Insurance Market.”
The Agricultural
Insurance Market is segmented into product type, distribution channel, and
region.
Based on product
type, Multi-Peril Crop Insurance (MPCI) was the dominating segment in the global
agricultural insurance market, driven by its comprehensive coverage against
multiple risks, including droughts, floods, pests, diseases, and market
fluctuations. Governments worldwide, particularly in the United States, India,
China, and Brazil, heavily subsidize MPCI to encourage farmer participation and
ensure food security. The U.S. Federal Crop Insurance Program (FCIP) and
India’s Pradhan Mantri Fasal Bima Yojana (PMFBY) are prime examples of
large-scale MPCI implementation. The increasing impact of climate change and
unpredictable weather patterns has further escalated the demand for MPCI,
making it the preferred choice for farmers seeking financial protection.
Additionally, advancements in AI-driven risk assessment, satellite imaging, and
remote sensing technologies are enhancing claim processing efficiency,
reinforcing MPCI’s dominance in the agricultural insurance market.
Based
on region, Asia-Pacific region is the fastest-growing market for agricultural
insurance, driven by increasing government subsidies, rising climate risks, and
expanding agribusiness. Countries like India, China, and Indonesia are heavily
investing in subsidized crop insurance programs such as India’s Pradhan Mantri
Fasal Bima Yojana (PMFBY) and China’s National Agricultural Insurance Program,
significantly increasing farmer participation. The region faces frequent
droughts, floods, and pest outbreaks, pushing demand for Multi-Peril Crop
Insurance (MPCI) and Parametric Insurance. Additionally, insurers are
leveraging digital innovations, AI-driven risk assessment, satellite imagery,
and blockchain technology to improve accessibility and efficiency.
Major companies
operating in the global Agricultural Insurance Market are:
- Munich Re Group
- AXA Group
- Allianz SE Reinsurance
- Great American Insurance Company
- Zurich Insurance Company Ltd
- Agriculture Insurance Company of India Limited (AIC)
- Sompo International Holdings Ltd
- Chubb Limited
- QBE Insurance Ltd.
- People's Insurance Company (Group) of China Limited
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“The global
agricultural insurance market is driven by rising climate risks, government
subsidies, increasing adoption of parametric insurance, expanding
public-private partnerships, and advancements in AI-driven risk assessment. The
key trends shaping the market include the integration of satellite imagery and
blockchain for claims processing, growing demand for microinsurance for small
farmers, AI-powered risk modeling, expansion of digital insurance platforms,
and the rise of weather-indexed insurance solutions. “Said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based management consulting
firm.
“Agricultural Insurance
Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Product Type (Multi-peril Crop Insurance (MPCI), Crop-hail
Insurance, Livestock Insurance, Others), By Distribution Channel (Banks,
Insurance Companies, Others), By Region & Competition, 2020-2030F”,
has evaluated the future growth potential of global Agricultural Insurance
Market and provides statistics & information on market size, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the global Agricultural
Insurance Market.
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