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
Tokio Marine HCC
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