Crop Insurance Market Report 2025

The crop insurance market size has grown strongly in recent years. It will grow from $43.31 billion in 2024 to $47.06 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to volatility in weather patterns, government support programs, globalization of agriculture, market liberalization, financial sector participation, natural disasters and catastrophes.

The crop insurance market size is expected to see strong growth in the next few years. It will grow to $66.45 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to climate-resilient crop varieties, education and awareness programs, market-driven insurance solutions, data analytics and remote sensing, index-based insurance. Major trends in the forecast period include technological integration, blockchain for transparency, integration with agtech solutions, customization and flexibility, data analytics for predictive modeling, innovative premium payment models.

The rising occurrence of adverse weather conditions is anticipated to drive the growth of the crop insurance market in the coming years. Adverse weather encompasses hazardous phenomena such as hurricanes, floods, blizzards, diseases, wildfires, and extreme temperatures, whether hot or cold. Crop insurance mitigates the financial strain on insured farmers by protecting them against potential losses due to crop damage caused by unfavorable weather factors like rainfall, temperature fluctuations, frost, and humidity. For example, in July 2023, the World Meteorological Organization, a Switzerland-based agency of the United Nations focused on fostering international cooperation in atmospheric science, climatology, hydrology, and geophysics, reported that Asia experienced 81 weather-related disasters in 2022, with over 83% being floods and storms. These events resulted in more than 5,000 fatalities, directly affected over 50 million people, and incurred economic damages exceeding $36 billion. Thus, the increasing frequency of adverse weather conditions is set to propel the growth of the crop insurance market.

The rising adoption of Internet of Things (IoT) Devices is poised to fuel the growth of the crop insurance market in the forthcoming period. IoT devices, embedded with sensors, software, and internet connectivity, play a crucial role in monitoring crop health, soil conditions, weather patterns, and environmental factors within crop insurance. These devices aid in assessing risks associated with weather anomalies or pest infestations, enabling insurers to offer more precise, farm-specific policies. For instance, projections from the CRO Forum and Exploding Topics suggest a surge in IoT devices, expected to reach 24.1 billion and 25.4 billion respectively by 2030. Therefore, the increasing adoption of IoT Devices is a driving force behind the growth of the crop insurance market.

Product innovation stands out as a predominant trend gaining momentum in the crop insurance market. Major industry players are dedicated to pioneering solutions to fortify their market standing. For example, in October 2022, HDFC ERGO General Insurance Company Ltd., an India-based financial services provider, introduced a technology-driven farm yield insurance policy tailored for farmers. This groundbreaking insurance solution leverages satellite-based indices to offer coverage at the farm level, ensuring comprehensive protection throughout the crop lifecycle, from planting to harvesting. This innovative product, applicable to food, oilseed, commercial, or horticultural crops, specifically targets farmers operating under corporate or farm input company (FIC) contracts, as stated in the company's press release.

Major players within the crop insurance market are introducing innovative technological solutions, such as a do-it-yourself (DIY) insurance platform, to maintain their competitive edge. A DIY insurance platform refers to a self-service digital tool enabling individuals to tailor, purchase, and manage their insurance policies independently. Typically, these platforms utilize online resources and user-friendly interfaces. For instance, in November 2022, Absolute, a bioscience company based in India, unveiled Digifasal. This platform serves as a DIY insurance solution designed explicitly for farmers, offering financial support to foster sustainable agricultural practices. Digifasal empowers farmers by allowing them to choose parametric insurance products from various insurers based on their pin codes, granting flexibility in selecting suitable insurance offerings. Additionally, Digifasal includes an AgCloud ecosystem, offering farmers a comprehensive solution at every stage of crop production.

In July 2023, American Financial Group (AFG) Inc., a U.S.-based financial services company, completed the acquisition of Crop Risk Services (CRS) from American International Group (AIG) Inc. for $240 million. Through this acquisition, American Financial Group (AFG) Inc. aims to leverage the strategic alignment with its existing crop insurance operations and expand its specialized niche businesses. American International Group (AIG) Inc. is a U.S.-based finance and insurance corporation that offers crop insurance services.

Major companies operating in the crop insurance market include Agriculture Insurance Company of India Limited, American Financial Group Inc., Chubb Corporation, ICICI Lombard General Insurance Company Limited, QBE Insurance Group Limited, Sompo International Holdings Ltd., Tokio Marine Holdings Inc., Zurich Insurance Company Ltd., Philippine Crop Insurance Corporation, AXA S.A., People's Insurance Company of China (Group) Co. Ltd., Fairfax Financial Holdings Limited, American International Group Inc., AmTrust Financial Services Inc., Santam Limited, China United Property Insurance Company Limited, XL Group Ltd., Everest Reinsurance Holdings Inc., Endurance Specialty Holdings Ltd., CUNA Mutual Group, CGB Diversified Services Inc., Farmers Mutual Hail Insurance Company, Archer Daniels Midland Company, Swiss Reinsurance Company Ltd., Munich Reinsurance Company, Bajaj Allianz General Insurance Company Limited, Marsh & McLennan Companies Inc., Willis Towers Watson Holdings plc, Lockton Companies, Brown & Brown Insurance and Risk Management, HUB International Limited, Arthur J. Gallagher & Co.

North America was the largest region in the crop insurance market in 2024. The regions covered in the crop insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the crop insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Crop insurance is a comprehensive policy designed to cover losses incurred by farmers due to various production issues. It provides coverage for losses caused by climatic conditions, accidents, or any other unfavorable circumstances that lead to a decrease in a farmer's revenue.

The primary types of crop insurance include crop yield insurance and crop revenue insurance. Crop yield insurance is a comprehensive yield-based policy intended to compensate farmers for losses resulting from production problems. It is designed to protect agriculturists against financial losses due to uncertainties arising from crop failures or losses caused by named or unforeseen perils beyond their control. The major coverages within crop insurance include multi-peril crop insurance (MPCI) and crop-hail insurance. These insurance products are distributed through various channels, including banks, insurance companies, brokers or agents, and other relevant avenues.

The crop insurance market research report is one of a series of new reports that provides crop insurance market statistics, including the crop insurance industry global market size, regional shares, competitors with a crop insurance market share, detailed crop insurance market segments, market trends and opportunities, and any further data you may need to thrive in the crop insurance industry. This crop insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The crop insurance market includes revenues earned by entities through sales of insurance services such as providing financial support, stabilizing the income of farmers, maintaining credit flow in agriculture, and covering production risks. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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