Press Release

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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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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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

BFSI | Mar, 2025

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.

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