“Global Crop Insurance Market to reach a market value of USD 59.32 Billion by 2032 growing at a CAGR of 5.8%”
The Global Crop Insurance Market size is expected to reach $59.32 billion by 2032, rising at a market growth of 5.8% CAGR during the forecast period.
The Revenue Insurance has gained traction particularly among commercial and large-scale farmers who are more sensitive to market volatility. As global commodity prices continue to fluctuate, revenue insurance serves as a critical risk management strategy, helping producers secure a predictable income despite market uncertainties.
The COVID-19 pandemic adversely affected the market across multiple dimensions. During the peak of the pandemic, global supply chains were severely disrupted, which hindered the distribution of agricultural inputs such as seeds, fertilizers, and pesticides. This disruption led to reduced crop yields, impacting the insured values and claim patterns within the market. The pandemic also resulted in significant delays in field assessments and claim settlements. Travel restrictions and social distancing protocols prevented insurance agents and assessors from visiting farms, thereby delaying loss verification and slowing the disbursement of claims. These delays eroded farmers’ trust in insurance processes and impacted the overall reliability of crop insurance systems. Moreover, economic uncertainty caused by the pandemic reduced the purchasing power of farmers, particularly in developing regions. Thus, the COVID-19 pandemic had a negative impact on the market.
The increasing incidence of extreme weather events such as droughts, floods, hurricanes, and unseasonal rainfall has significantly impacted agricultural output across the globe. As climate change intensifies, farmers face unprecedented uncertainty regarding crop yield and quality. This heightened exposure to unpredictable weather patterns has underscored the critical need for robust risk management tools, notably crop insurance. As a result, the demand for comprehensive crop insurance policies is witnessing significant growth, encouraging market expansion. In conclusion, as climate change remains a pressing issue, the market is expected to thrive, playing a central role in sustainable agricultural development.
Additionally, Governments around the world recognize the strategic importance of agriculture to food security and economic stability. To ensure the resilience of this sector, many nations have introduced subsidized crop insurance schemes and financial incentives. These programs make insurance premiums more affordable for smallholder and marginal farmers, significantly expanding access to crop insurance. Such initiatives are particularly vital in developing countries where financial constraints often limit risk mitigation strategies. Therefore, as government support continues to strengthen, the market is poised for long-term, inclusive growth across geographies.
One of the most significant challenges in the market is the high cost of insurance premiums, which often makes coverage unaffordable for small and marginal farmers. These farmers, who form a large portion of the agricultural population in developing countries, operate on limited resources and thin profit margins. With competing financial priorities such as seeds, fertilizers, and irrigation, allocating funds for crop insurance becomes difficult. As a result, they remain uninsured or underinsured, increasing their vulnerability to agricultural losses. Hence, unless addressed through innovative pricing models or broader subsidies, the high cost of premiums will continue to act as a major roadblock to inclusive growth in the crop insurance market.
The Crop Insurance Market value chain encompasses a comprehensive sequence of interconnected functions aimed at delivering effective risk coverage to farmers. It starts with Product Development, shaped by Regulatory & Compliance Management to ensure alignment with agricultural and insurance laws. Marketing & Awareness campaigns drive product visibility, followed by Distribution & Sales which bridge the gap to end users. Once Policy Underwriting and Premium Collection & Payment Systems are done Monitoring & Risk Assessment ensures accurate evaluation of potential crop losses. In case of events, Claims Management and Customer Support deliver services and resolutions to policyholders. Finally, Feedback & Product Improvement loops insights back into development, driving continuous enhancement of insurance offerings.
Based on type, the market is characterized into multi-peril crop insurance (MPCI), crop-hail insurance and revenue insurance. The crop-hail insurance segment procured 27% revenue share in the market in 2024. This segment caters specifically to regions where hailstorms are a frequent and severe threat to crops. Unlike other forms of crop insurance, crop-hail insurance can be purchased at any time during the growing season, offering flexibility and targeted protection. Its appeal lies in its ability to provide compensation for damage caused by hail, which can be highly localized but devastating.
On the basis of coverage, the market is classified into yield protection, revenue protection, and price protection. The yield protection segment acquired 30% revenue share in the market in 2024. This segment focuses on insuring farmers against losses in crop production due to uncontrollable natural events such as drought, floods, pests, and disease outbreaks. The popularity of yield protection stems from its straightforward approach in guaranteeing a certain level of crop yield based on historical averages, which ensures basic income security for farmers.
By distribution channel, the market is divided into government agencies, insurance companies, and others. The insurance companies segment garnered 24% revenue share in the market in 2024. Private insurers have increasingly expanded their presence in the agricultural sector, offering customized policies tailored to specific crops, regions, and risk profiles. With advancements in data analytics, satellite imaging, and weather forecasting, private insurance firms are now able to offer more accurate risk assessments and faster claim settlements.
Free Valuable Insights: Global Crop Insurance Market size to reach USD 59.32 Billion by 2032
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 46% revenue share in the market in 2024. This strong performance is largely driven by well-established insurance frameworks, particularly in the United States, where government-backed programs like the Federal Crop Insurance Program (FCIP) provide extensive coverage to farmers. The presence of advanced agricultural technologies, high awareness levels, and significant investments in risk mitigation tools have further boosted the adoption of crop insurance across the region.
| Report Attribute | Details |
|---|---|
| Market size value in 2024 | USD 38.45 Billion |
| Market size forecast in 2032 | USD 59.32 Billion |
| Base Year | 2024 |
| Historical Period | 2021 to 2023 |
| Forecast Period | 2025 to 2032 |
| Revenue Growth Rate | CAGR of 5.8 % from 2025 to 2032 |
| Number of Pages | 272 |
| Number of Tables | 351 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Coverage, Distribution Channel, Region |
| Country scope |
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| Companies Included | USI Insurance Services, LLC, QBE Insurance Group Limited, Chubb Limited, Zurich Insurance Group Ltd., Great American Insurance Company (American Financial Group, Inc.), American International Group, Inc. (AIG), Nationwide Mutual Insurance Company, ICICI Lombard General Insurance Company Limited (ICICI Bank Limited), AXA SA, and Bajaj Allianz General Insurance Company |
By Type
By Coverage
By Distribution Channel
By Geography
This Market size is expected to reach $59.32 billion by 2032.
Expansion Of The Agriculture Sector Worldwide are driving the Market in coming years, however, High Premium Costs And Limited Affordability Among Small And Marginal Farmers restraints the growth of the Market.
USI Insurance Services, LLC, QBE Insurance Group Limited, Chubb Limited, Zurich Insurance Group Ltd., Great American Insurance Company (American Financial Group, Inc.), American International Group, Inc. (AIG), Nationwide Mutual Insurance Company, ICICI Lombard General Insurance Company Limited (ICICI Bank Limited), AXA SA, and Bajaj Allianz General Insurance Company
The expected CAGR of this Market is 5.8% from 2023 to 2032.
The Revenue Protection segment led the maximum revenue in the Market by Coverage in 2024, thereby, achieving a market value of $30.5 billion by 2032.
The North America region dominated the Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $26.1 billion by 2032.
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