Friday, 4 September 2020

Reasons the Concept of Crop Insurance Has Started to Prevail Worldwide

Rise in digital initiatives for crop insurance and supportive government initiatives such as subsidies drive the growth of the global crop insurance market. However, high cost of premiums and lack of awareness among farmers hinder the market growth. On the other hand, untapped potential in emerging countries and expansion of services create new opportunities in the coming years.

According to the report, the global crop insurance industry generated $34.05 billion in 2019, and is estimated to generate $53.02 billion by 2027, registering a CAGR of 6.1% from 2020 to 2027.


Covid-19 Scenario

·         The demand for crop insurance has grown during the Covid-19 pandemic due to disrupted supply chain and impact on crop revenue in major countries such as India and Brazil.

·         Owing to the scarcity of laborers for harvesting and other activities, the crop production activities have been hampered, which in turn, raised the need for crop insurance.

The need for reformation of a regulatory framework to overcome challenges faced by insurers and policy adopters has arisen during the pandemic. Policymakers have focused their efforts on the reformations.

Read Full News: https://www.alliedmarketresearch.com/crop-insurance-market-A06791

The multiple peril crop insurance (MPCI) segment to maintain its leadership status by 2027

Based on coverage, the multiple peril crop insurance (MPCI) segment contributed to the largest share in 2019, accounting for more than two-thirds of the global crop insurance market, and is projected to maintain its leadership status during the forecast period. Moreover, this segment is estimated to witness the highest CAGR of 7.1% from 2020 to 2027. This is due to its offering of a combination product along with perils covered by the standard loss of yield coverage under the crop insurance policy. The report also analyzes the crop-hail insurance segment.

Based on distribution channel, the insurance companies segment accounted for nearly half of the global crop insurance market in 2019, and is expected to maintain its dominance during the forecast period. This is attributed to the innovative & attractive range of distribution techniques and utilization of multiple channels for distribution of its crop insurance services. However, the brokers/agents segment would witness the highest CAGR of 8.6% from 2020 to 2027. This is due to multiple options & alternatives for crop insurance provided by them.

North America to continue its lead status by 2027

Based on region, North America accounted for the largest share of more than two-fifths of the global crop insurance market in 2019, and is expected to continue its lead status by 2027. This is due to farmers & ranchers in the U.S. striving to maintain economical crop production by acquiring crop insurance coverage. However, Asia-Pacific is expected to witness the highest CAGR of 7.9% from 2020 to 2027, owing to rise in agricultural production activity and adoption of advanced technologies in the region.

Leading Market Players

·         Agriculture Insurance Company of India Limited (AIC)

·         American Financial Group, Inc.

·         Chubb

·         Fairfax Financial Holdings Limited

·         ICICI Lombard General Insurance Company Limited

·         PICC

·         QBE Insurance Group Limited

·         Sompo International Holdings Ltd

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