Agricultural Insurance Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type, By Distribution Channel, By Region & Competition, 2020-2030F

Description

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 expanding due to increasing climate risks, government support, and rising awareness among farmers. Extreme weather events, including droughts, floods, and storms, have driven demand for coverage against crop and livestock losses. Government subsidies and initiatives in regions like the U.S., China, and India encourage farmers to adopt insurance policies. Technological advancements, such as satellite imagery and AI-driven risk assessment, are enhancing underwriting processes. Additionally, the growth of agribusiness and food security concerns is fueling market expansion.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 42.32 Billion
Market Size 2030	USD 60.32 Billion
CAGR 2025-2030	6.08%
Fastest Growing Segment	Livestock Insurance
Largest Market	North America

Market Drivers

Increasing Climate Change Risks and Extreme Weather Events

The growing frequency and intensity of extreme weather events, such as droughts, floods, hurricanes, and wildfires, have significantly driven demand for agricultural insurance worldwide. According to the World Meteorological Organization (WMO), climate-related disasters have increased fivefold over the past 50 years, leading to severe crop and livestock losses. Countries like the United States, India, and China have witnessed substantial agricultural damage due to erratic monsoons, prolonged droughts, and unexpected frosts. In 2022, global insured losses from natural disasters reached $132 billion, highlighting the urgent need for risk mitigation solutions in agriculture. This heightened risk exposure has made farmers, agribusinesses, and financial institutions more inclined toward insurance policies to safeguard investments and ensure financial stability. As a result, the global agricultural insurance market is experiencing strong growth, with governments and private insurers developing new products to cater to the evolving risk landscape.

Key Market Challenges

High Premium Costs and Limited Affordability for Small-Scale Farmers

One of the major challenges facing the global agricultural insurance market is the high cost of premiums, which makes it unaffordable for small and marginal farmers. Unlike large agribusinesses that can absorb insurance costs, smallholder farmers, especially in developing countries, struggle to afford coverage due to their limited financial resources. The cost of agricultural insurance is influenced by factors such as increasing climate risks, expensive risk assessment technologies, and administrative costs for insurers. In regions like Africa and Southeast Asia, where farming is a primary livelihood for millions, the penetration of agricultural insurance remains low due to high premiums and lack of financial support. While some governments provide subsidies to offset costs, funding limitations often lead to inadequate coverage, leaving many farmers vulnerable to losses from extreme weather events. Additionally, complex pricing models, high administrative expenses, and the need for reinsurance further drive up costs, discouraging small farmers from purchasing insurance. Without more accessible and affordable insurance options, the market faces barriers to expansion, particularly in developing economies where agricultural resilience is crucial for food security.

Key Market Trends

Rising Adoption of Parametric Insurance for Faster Payouts

One of the most significant trends in the agricultural insurance market is the increasing adoption of parametric insurance, which offers predefined payouts based on objective weather data or other measurable indices rather than traditional damage assessments. Unlike conventional indemnity-based insurance, parametric insurance minimizes the need for lengthy claim verifications, enabling faster compensation for farmers affected by extreme weather events such as droughts, floods, and hurricanes. According to Swiss Re, the global parametric insurance market is expected to grow at a CAGR of over 10% in the coming years, driven by advancements in data analytics and satellite-based monitoring. Several countries, including India, the United States, and African nations, have started implementing parametric insurance solutions to improve coverage efficiency and farmer participation. For instance, the World Bank has been supporting index-based insurance programs in Kenya, helping smallholder farmers secure financial stability against climate risks. As the demand for quicker and more transparent insurance payouts rises, parametric insurance is expected to play a crucial role in expanding agricultural insurance penetration, particularly in emerging markets.

Key Market Players

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

Report Scope:

In this report, the global Agricultural Insurance Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Agricultural Insurance Market, By Product Type:

Multi-peril Crop Insurance (MPCI)
Crop-hail Insurance
Livestock Insurance
Others

Agricultural Insurance Market, By Distribution Channel:

Banks
Insurance Companies
Others

Agricultural Insurance Market, By Region:

North America
- United States
- Canada
- Mexico
Europe
- France
- Germany
- Spain
- Italy
- United Kingdom
Asia-Pacific
- China
- Japan
- India
- Vietnam
- South Korea
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Turkey
South America
- Brazil
- Argentina
- Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the global Agricultural Insurance Market.

Available Customizations:

Global Agricultural Insurance Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Introduction

1.1. Market Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered

2. Research Methodology

2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends

4. Global Agricultural Insurance Market Outlook

4.1. Market Size & Forecast
- 4.1.1. By Value
4.2. Market Share & Forecast
- 4.2.1. By Product Type (Multi-peril Crop Insurance (MPCI), Crop-hail Insurance, Livestock Insurance, Others)
- 4.2.2. By Distribution Channel (Banks, Insurance Companies, Others)
- 4.2.3. By Region
- 4.2.4. By Company (2024)
4.3. Market Map

5. North America Agricultural Insurance Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Product Type
- 5.2.2. By Distribution Channel
- 5.2.3. By Country
5.3. North America: Country Analysis
- 5.3.1. United States Agricultural Insurance Market Outlook
  - 5.3.1.1. Market Size & Forecast
    - 5.3.1.1.1. By Value
  - 5.3.1.2. Market Share & Forecast
    - 5.3.1.2.1. By Product Type
    - 5.3.1.2.2. By Distribution Channel
- 5.3.2. Canada Agricultural Insurance Market Outlook
  - 5.3.2.1. Market Size & Forecast
    - 5.3.2.1.1. By Value
  - 5.3.2.2. Market Share & Forecast
    - 5.3.2.2.1. By Product Type
    - 5.3.2.2.2. By Distribution Channel
- 5.3.3. Mexico Agricultural Insurance Market Outlook
  - 5.3.3.1. Market Size & Forecast
    - 5.3.3.1.1. By Value
  - 5.3.3.2. Market Share & Forecast
    - 5.3.3.2.1. By Product Type
    - 5.3.3.2.2. By Distribution Channel

6. Europe Agricultural Insurance Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Product Type
- 6.2.2. By Distribution Channel
- 6.2.3. By Country
6.3. Europe: Country Analysis
- 6.3.1. France Agricultural Insurance Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Product Type
    - 6.3.1.2.2. By Distribution Channel
- 6.3.2. Germany Agricultural Insurance Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Product Type
    - 6.3.2.2.2. By Distribution Channel
- 6.3.3. Spain Agricultural Insurance Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Product Type
    - 6.3.3.2.2. By Distribution Channel
- 6.3.4. Italy Agricultural Insurance Market Outlook
  - 6.3.4.1. Market Size & Forecast
    - 6.3.4.1.1. By Value
  - 6.3.4.2. Market Share & Forecast
    - 6.3.4.2.1. By Product Type
    - 6.3.4.2.2. By Distribution Channel
- 6.3.5. United Kingdom Agricultural Insurance Market Outlook
  - 6.3.5.1. Market Size & Forecast
    - 6.3.5.1.1. By Value
  - 6.3.5.2. Market Share & Forecast
    - 6.3.5.2.1. By Product Type
    - 6.3.5.2.2. By Distribution Channel

7. Asia-Pacific Agricultural Insurance Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Product Type
- 7.2.2. By Distribution Channel
- 7.2.3. By Provider
- 7.2.4. By Country
7.3. Asia-Pacific: Country Analysis
- 7.3.1. China Agricultural Insurance Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Product Type
    - 7.3.1.2.2. By Distribution Channel
- 7.3.2. Japan Agricultural Insurance Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Product Type
    - 7.3.2.2.2. By Distribution Channel
- 7.3.3. India Agricultural Insurance Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Product Type
    - 7.3.3.2.2. By Distribution Channel
- 7.3.4. Vietnam Agricultural Insurance Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Product Type
    - 7.3.4.2.2. By Distribution Channel
- 7.3.5. South Korea Agricultural Insurance Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Product Type
    - 7.3.5.2.2. By Distribution Channel

8. Middle East & Africa Agricultural Insurance Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Product Type
- 8.2.2. By Distribution Channel
- 8.2.3. By Country
8.3. MEA: Country Analysis
- 8.3.1. South Africa Agricultural Insurance Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Product Type
    - 8.3.1.2.2. By Distribution Channel
- 8.3.2. Saudi Arabia Agricultural Insurance Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Product Type
    - 8.3.2.2.2. By Distribution Channel
- 8.3.3. UAE Agricultural Insurance Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Product Type
    - 8.3.3.2.2. By Distribution Channel
- 8.3.4. Turkey Agricultural Insurance Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Product Type
    - 8.3.4.2.2. By Distribution Channel

9. South America Agricultural Insurance Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Product Type
- 9.2.2. By Distribution Channel
- 9.2.3. By Country
9.3. South America: Country Analysis
- 9.3.1. Brazil Agricultural Insurance Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Product Type
    - 9.3.1.2.2. By Distribution Channel
- 9.3.2. Argentina Agricultural Insurance Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Product Type
    - 9.3.2.2.2. By Distribution Channel
- 9.3.3. Colombia Agricultural Insurance Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Product Type
    - 9.3.3.2.2. By Distribution Channel

10. Market Dynamics

10.1. Drivers
10.2. Challenges

11. Market Trends & Developments

11.1. Merger & Acquisition (If Any)
11.2. Product Launches (If Any)
11.3. Recent Developments

12. Porters Five Forces Analysis

12.1. Competition in the Industry
12.2. Potential of New Entrants
12.3. Power of Suppliers
12.4. Power of Customers
12.5. Threat of Substitute Products

13. Competitive Landscape

13.1. Company Profiles
- 13.1.1. Munich Re Group
  - 13.1.1.1. Business Overview
  - 13.1.1.2. Company Snapshot
  - 13.1.1.3. Products & Services
  - 13.1.1.4. Financials (As Per Availability)
  - 13.1.1.5. Key Market Focus & Geographical Presence
  - 13.1.1.6. Recent Developments
  - 13.1.1.7. Key Management Personnel
- 13.1.2. AXA Group
- 13.1.3. Allianz SE Reinsurance
- 13.1.4. Great American Insurance Company
- 13.1.5. Zurich Insurance Company Ltd
- 13.1.6. Agriculture Insurance Company of India Limited (AIC)
- 13.1.7. Sompo International Holdings Ltd
- 13.1.8. Chubb Limited
- 13.1.9. QBE Insurance Ltd.
- 13.1.10. People's Insurance Company (Group) of China Limited