세계의 농작물 보험 시장 규모는 2023년 423억 8,000만 달러에서 2031년에 676억 5,000만 달러에 달할 것으로 예측되며, 2024-2031년의 예측 기간에 CAGR로 6.02%의 성장이 전망됩니다. 농업은 세계 경제에서 가장 중요한 부문이자 관행 중 하나입니다. 그러나 농업에 직접 종사하는 농가나 경작자의 이익은 항상 위험에 노출되어 있으므로 농작물 보험이 중요한 수단으로 부상하고 있습니다. 전 세계 농작물 보험 시장은 자연재해, 악천후, 병충해, 시장 변동 등으로 인한 농작물 손실에 따른 경제적 위험으로부터 농업 생산자를 보호하는 데 중요한 역할을 하고 있습니다. 농작물 보험은 농가에 중요한 보호를 제공하고, 농업 생활의 안정을 보장하며, 식량안보를 촉진하고, 전 세계에서 지속가능한 농업을 지원하고 있습니다.
유엔식량농업기구(FAO)의 조사에 따르면 2019년 약 12억 3,000만 명이 전 세계 농업 식품 시스템에서 일하고 있으며, 이는 전 세계 인구의 거의 절반이 농업 식품 시스템과 관련된 가구에 거주하고 있습니다. 이러한 거대한 인구의 이익을 보호하기 위해 농작물 보험은 경제의 불확실성과 세계 경제 전체의 성장을 보장하는 데 필수적인 툴이 될 수 있습니다. 전 세계 농작물 보험 시장에는 정부 기관부터 민간 기업까지 다양한 기업이 존재하며, 농가가 직면한 고유한 위험을 완화하고 역경에 직면했을 때 회복력을 강화하기 위한 다양한 상품과 서비스를 제공함으로써 시장을 독점하고 있습니다.
개발도상국 및 저개발 국가의 농업 부문은 농작물 보험을 거의 이용하지 않기 때문에 세계 농작물 보험 시장은 큰 성장 잠재력을 가지고 있습니다. 세계 농작물 보험 시장은 농가와 농업 기업의 특정 요구에 맞게 조정된 다양한 보험 상품을 보유하고 있습니다. 농작물 보험에는 작물 수확량 손실을 보상하는 수확량 기반 보험과 가격 변동이나 수확량 감소로 인한 작물 매출 감소를 보상하는 매출 기반 보험 등 다양한 유형이 있습니다.
유엔식량농업기구(FAO)가 2023년 발표한 보고서에 따르면 지난 30년간 재해로 인한 농작물 및 가축 생산 비용은 3조 8,000억 달러에 달하며, 이는 연평균 1,230억 달러, 세계 농업 GDP의 5%에 해당합니다.
정부가 세계 농작물 보험 시장 성장에 큰 역할을 할 것입니다.
정부는 항상 개인의 이익을 보호하고 더 큰 집단의 이익을 위해 상품과 서비스를 촉진하는 데 중요한 역할을 해왔습니다. 마찬가지로 정부의 지원, 노력 및 보조금은 세계 농작물 보험 시장의 성장을 가속하는 데 중요한 역할을 합니다. 정부의 구상은 농가의 참여를 장려하고, 재정적 위험을 줄이고, 기후 변화와 자연재해에 직면한 농업의 회복력을 촉진합니다. 정부 보조금은 농가의 농작물 보험료 부담을 줄이고, 특히 영세 농가와 저소득 지역 농가의 보험 가입을 보다 저렴하고 쉽게 이용할 수 있도록 합니다. 정부는 농작물 보험 시장의 성장을 지원하는 정책적 안정성과 규제 체계를 구축합니다. 명확한 규정, 리스크 관리 지침 및 집행 메커니즘을 통해 보험사가 활동하기 쉽고 보험 상품을 확대할 수 있는 환경을 조성할 것입니다.
2023년 12월에 발표된 연방 감시기관의 조사에 따르면 2011년 이후 미국 농작물을 보장하기 위한 미국 정부 자금의 3분의 1 이상이 이 프로그램을 통해 연간 10억 달러 이상의 이익을 얻고 있는 보험회사로 흘러들어갔다고 합니다. 미국 농무부가 운영하는 연방 농작물 보험 프로그램은 자연 재해 및 농작물 손실과 가격 하락을 초래하는 기타 사건으로 인한 경제적 손실로부터 농가를 보호하기 위해 고안되었습니다.
기후 변화와 이상기후로 인해 시장 규모가 커질 것입니다.
이상기후와 이벤트가 전 세계 농작물 보험 시장의 호황을 촉진하고 있습니다. 기후 변화 및 기상 조건의 변화는 대기 상태의 변화가 농작물 수확량에 영향을 미치기 때문에 농업 및 농작물 수확량과 관련이 있습니다. 기후 변화는 가뭄, 홍수, 폭풍, 폭염, 예측할 수 없는 강우 패턴 등 이상기후를 더욱 빈번하고 심각하게 만들고 있습니다. 이러한 현상은 농작물 손실과 수확량 감소를 초래할 수 있으며, 날씨 관련 위험에 대한 보험 보호의 필요성을 강조하고 있습니다. 이러한 환경적 요인은 기후 관련 위험에 대한 농업의 취약성을 강조하고, 농가의 생계를 보호하고 농업의 회복탄력성을 촉진하는 데 있으며, 농작물 보험과 같은 위험 관리 전략의 중요성을 강조하고 있습니다.
세계의 농작물 보험 시장에 대해 조사분석했으며, 시장 규모와 예측, 시장 역학, 주요 기업의 상황과 전망 등을 제공하고 있습니다.
Global crop insurance market is projected to witness a CAGR of 6.02% during the forecast period 2024-2031, growing from USD 42.38 billion in 2023 to USD 67.65 billion in 2031. Agriculture is one of the most important sectors and practices in the global economy. Good agriculture safeguards global food security; however, as the interests of farmers and cultivators who are directly involved in agriculture are always at stake, crop insurance emerges as an important tool. The global crop insurance market plays a critical role in safeguarding agricultural producers against the financial risks associated with crop losses due to natural disasters, adverse weather conditions, pests, diseases, and market fluctuations. Crop insurance provides vital protection to farmers, ensuring the stability of agricultural livelihoods, promoting food security, and supporting sustainable farming practices worldwide.
According to research by the Food and Agriculture Organization of the United Nations (FAO), approximately 1.23 billion people worked in the world's agrifood systems in 2019, which is almost half of the world's population living in households linked to agrifood systems. To safeguard the interest of such a gigantic population, crop insurance becomes a vital tool to secure economic uncertainties and the overall growth of the global economy. The global crop insurance market has multiple players ranging from government institutions to private players dominating the market by offering various products and services, aiming to mitigate the inherent risks faced by farmers and bolstering their resilience in the face of adversities.
Global crop insurance market has huge growth potential as the agricultural sector in developing and underdeveloped economies is largely not exposed to crop insurance. The global crop insurance market encompasses a diverse array of insurance products tailored to meet the specific needs of farmers and agricultural enterprises. There are different types of crop insurance, including yield-based insurance, which protects against losses in crop yield, while revenue-based insurance covers the declines in crop revenue due to price fluctuations or reduced yields.
In 2023, according to a report released by the Food and Agriculture Organisation of the United Nations (FAO), disasters have costed an estimated USD 3.8 trillion in crop and livestock production over the last 30 years, equating to an average loss of USD 123 billion per year or 5% of global agricultural GDP.
Government to Have a Major Role in Global Crop Insurance Market Growth
The government always plays a key role in protecting the interests of individuals and promoting the products and services that are in the interest of larger groups. In the same way government support, initiatives, and subsidies play a key role in driving the growth of global crop insurance market. Government initiatives incentivize farmer participation, mitigate financial risks, and promote agricultural resilience in the face of climate variability and natural disasters. Government subsidies reduce the cost of crop insurance premiums for farmers, making insurance coverage more affordable and accessible, especially for smallholder farmers and those in low-income regions. Governments establish policy stability and regulatory frameworks that support the growth of crop insurance markets. Clear regulations, risk management guidelines, and enforcement mechanisms create a conducive environment for insurers to operate and expand their offerings.
According to a federal watchdog study released on December 2023, over one-third of the United States government funding to ensure the nation's crops since 2011 has gone to insurance companies that profit from the program by more than USD 1 billion per year. The federal crop insurance program, operated by the United States Department of Agriculture, is designed to protect farmers from financial losses caused by natural disasters or other occurrences that result in crop losses or price declines.
Climate Variability and Extreme Weather Events Drives the Market Size
Extreme weather conditions and events drive the booming global crop insurance market. Climate variability and changes in weather conditions are linked with agriculture and crop yield as the changes in atmospheric conditions affect the crops and the agricultural yield. Climate change is leading to more frequent and severe extreme weather events, including droughts, floods, storms, heatwaves, and unpredictable rainfall patterns. These events can cause significant crop losses and yield reductions, highlighting the need for insurance protection against weather-related risks. These environmental factors underscore the vulnerability of agriculture to climate-related risks and highlight the importance of risk management strategies, such as crop insurance, in safeguarding farmers' livelihoods and promoting agricultural resilience.
In 2024, A new study by CIMMYT has shown relations between rising temperatures and the destructive fungal plant disease wheat blast. The disease currently threatens 6.4 million hectares, and by 2050, climate change is expected to exacerbate the situation, threatening 13.5 million hectares of agriculture. Wheat blast has the potential to reduce wheat yield by 13% worldwide. South America and Africa will be the most vulnerable locations to wheat blast in the future climate, with up to 75% of their wheat acreage under threat by 2050.
Integration of Technology and Data Analytics
Over the years, the global crop insurance market has expanded for various reasons, mainly safeguarding the interests of a large global population engaged in the primary sector. However, the dynamics of the market are changing due to the adoption of technologies in various products and services. The trend is transforming traditional insurance practices, improving risk assessment accuracy, enhancing operational efficiency, and expanding insurance coverage for agricultural producers.
Remote sensing, along with satellite imagery and drones, is being implemented, enabling insurers to monitor crop conditions, assess vegetation health, and detect anomalies in real time. The data estimates crop yields, predicts potential losses, and facilitates faster claims processing. Access to historical weather data and advanced climate models allows insurers to quantify weather-related risks more effectively. By analyzing long-term climate patterns and seasonal forecasts, insurers can develop more accurate risk assessment models and offer customized insurance products tailored to specific weather conditions.
Due to innovative technologies such as Farmers Edge's FarmCommand and IBM's GenAI, crop insurance operations are now more efficient and effective. FarmCommand combines satellite imagery, weather data, and AI-powered analytics to give farmers actionable insights for improving crop management practices.
Future Market Scenario (2024 - 2031F)
In the coming years, the market will witness major changes in how the crop insurance industry offers its products, minimizes farmers' risks, and maximizes their profits. In this context, major players will incorporate various technologies like AI, blockchain, and data analytics based on different platforms.
Parametric and index-based insurance products will gain traction due to their simplicity, transparency, and scalability. These innovative insurance models offer faster claims settlements based on predefined triggers, such as weather indices, reducing administrative costs and improving risk management efficiency.
In the foreseeable future, the market will witness high growth in developing countries or underdeveloped countries of Asia, Africa, and South America as product awareness and acceptance will increase.
Key Players Landscape and Outlook
The outlook for global crop insurance market is positive, it is expected that the market will continue to grow and expand in the forecast period due to various market drivers such as support, schemes, and initiatives from governments, integration of technologies and data analytics. The increasing frequency and severity of climate-related risks drive the demand for crop insurance as a critical risk management tool. Farmers seek financial protection against weather extremes, market volatility, and production uncertainties, stimulating market growth. Continued investment in data-driven solutions and multi-stakeholder partnerships will further accelerate market development and expand insurance coverage for farmers worldwide.
In April 2024, Farmers Mutual Hail Insurance Company of Iowa (FMH) announced the acquisition of Global Ag Insurance Services, an AXA XL company that specializes in crop insurance. Global Ag, based in the western United States, specializes in providing a wide range of crop insurance solutions, including the USDA multi-peril crop insurance program as well as several specialty private and named peril products designed to meet the specific needs of agricultural producers and growers.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work