What is Crop Insurance Market?
Crop insurance is a complete yield-based policy meant to repay farmers’ losses arising due to production problems. It covers pre-sowing and post-harvest losses due to cyclonic rains and rainfall deficits. These losses lead to a reduction in crop yield, which affects the income of farmers. Rapid digital technology advancement, predicts weather conditions, detect diseased crops, stores data related to crops & micro-level information of land for harvesting crops. Technological features such as satellites, drones, the internet of things, artificial intelligence, mobile applications, and other web-based platforms drive the demand for crop insurance coverage across the globe.
Highlights from Crop Insurance Market Study
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
Unit | Value (USD Million) |
Key Companies Profiled | Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) (India), QBE Insurance Group Ltd. (Australia), Santam Ltd. (SouthAfrica), Sompo Holdings Inc. (Japan), The New India Assurance Co. Ltd. (India), Tokio Marine Holdings Inc. (Japan), Zurich Insurance Co. Ltd. (Switzerland), Chubb Limited (Switzerland), HDFC ERGO General Insurance Co (India) and ICICI Lombard General Insurance Co (India) |
The global 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. These will enhance their market presence. The companies are also planning strategic activities like partnerships, mergers, and acquisitions and it maintains their growth at a competitive edge.
Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) (India), QBE Insurance Group Ltd. (Australia), Santam Ltd. (SouthAfrica), Sompo Holdings Inc. (Japan), The New India Assurance Co. Ltd. (India), Tokio Marine Holdings Inc. (Japan), Zurich Insurance Co. Ltd. (Switzerland), Chubb Limited (Switzerland), HDFC ERGO General Insurance Co (India) and ICICI Lombard General Insurance Co (India) are some of the key players profiled in the study. Crop Insurance Market Segmentation:
Scope | Sub-Segments |
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Type | Multiple Peril crop Insurance and Crop-Hail Insurance |
Distribution Channel | Banks,Insurance Companies,Others |
On the basis of geography, the market of Crop Insurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Market Drivers
- Rise in the Government Support In The Form Of Subsidies
- Increasing Demand Owing to Expansion of crop insurance product line
- Enabling the detection of diseased crops, prediction of weather
Market Trend
- Rising Penetration of Digital Initiatives to Crop Insurance
- Increasing Digital Initiatives Surge in Adoption of Advanced Technologies
- Increase in Demand for Multiple & Personalized Coverage for Crop Insurance
Restraints
- Higher Premium Rates Limit the Demand for Crop Insurance Policies
- Limited Awareness toward Crop Insurance
Opportunities
- Rising Commercialisation of Farming is leading to Higher Financial Investments in Crops
- Growing Technologies Leading to the Enhancing Opportunity to Farmers and Agri-Stakeholders
Challenges
- Problems of Adverse Selection in Crop Insurance
Market Leaders & Development Strategies
On 10th May 2022, Raven industry signed a merge and acquisition agreement with the CNH industry. This industry is manufacturing equipment and technology which is helpful in smart agriculture and precision Forestry. A technology company that develops autonomous farming solutions for agriculture.
On 10th February 2022, Agricultural producers have covered most crop insurance policies that are eligible for premium benefits from the U.S department of agriculture. They planted the cover planted crops during the 2022 crop year. PCCP, offered by USDA’S risk management agency helps farmers to maintain their cover crops systems, despite the financial challenges posted by the pandemic and is part of USDA’s pandemic assistance for producers felt the impact of COVIC-19 market disruption.
Key Target Audience
Crop Insurance Service, New Entrants and Investors, Venture Capitalists, Government Bodies, Corporate Entities, Government and Private Research Organizations and Others