Farm insurance is purchased by agricultural producers and subsidized by the federal government to protect crop against loss due to natural disasters such as hail, drought, & floods as well as revenue loss due to price drops in agricultural commodities.Farm insurance protects farmers from losing money due to price drops in agricultural commodities and crop losses caused by natural disasters. It entails the involvement of a large number of insured’s, including farmers, ranchers, and other agricultural producers.Furthermore, several countries have made crop insurance coverage mandatory for farmers who take out market-based crop loans.Moreover, farm insurers also provide value to low-income farmers & their crops by protecting them from unexpected losses and encouraging significant crop investment. Consumers, on the other hand, face a number of challenges when dealing with farm insurance, including lack of awareness about premium farm insurance and delays in claim settlement processes. Therefore, surge in demand for farm insurance is expected to boost the growth of the market in the coming years.
"The Farm Insurance market is segmented on the basis of Coverage, Distribution Channel,and Region. Based on Coverage, the market is divided into Multi-Peril Crop Insurance and Crop Hail Insurance. In terms of Distribution Channel, the market is categorized into Banks, Insurance Companies, Broker/Agents and Others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
COVID-19 scenario analysis
- Due to widespread fear of the virus and unprecedented transportation restrictions, the outbreak of COVID-19 has a moderate impact on the crop insurance market, causing supply chains for selling crops to be disrupted.
- Furthermore, scarcity of labor for investing in and supplying crops in the market hampered the crop insurance market indirectly during the pandemic. As a result, difficulties encountered during crop harvesting and distribution reduce demand for crop insurance. However, following the recovery from the COVID-19 pandemic, the farm insurance market is expected to thrive in the coming years.
Top impacting factors: market scenario analysis, trends, drivers, and impact analysis
Increased incorporation of digital technologies and rise in government initiatives are driving the growth of the market. In addition, growing expansion of farm insurance product line is expected to fuel the growth of the market. However, high premium rates in farm insurance may limit the growth of the market. Contrarily, increased adoption of farm insurance among developed countries is expected to provide lucrative opportunities to the market in the coming years.
The global farm insurancemarket trends are as follows:
Increased incorporation of digital technologies
Satellites, drones, the internet of things (IoT), artificial intelligence, mobile applications, and other web-based platforms are among technologies that are propelling the market forward. This is due to the fact that these technologies allow for the detection of diseased crops, weather forecasting, crop data storage, and micro-level information about the size and condition of crops.These advanced features aid in the reduction of several unknown risks and increase the market effectiveness of crop insurance. The market growth is fueled by an increase in digital initiatives and surge in the adoption of advanced technologies.
Rise in government initiatives
Agriculture growth and development have been aided by the government. The growth of the crop insurance market is fueled by an increase in government support to protect farmers from fluctuations in revenues, prices, and yields.
Furthermore, this subsidized funding enables insured to obtain crop insurance coverage with more options and customized options available in the market.As farming is the major source of revenue for the country across many countries, the government has taken many initiatives to make sure the farm sector gets equipped and acquainted with the different types of insurance that would be applicable. As the government took these initiatives, there has been growth in the farm insurance market and rise in government initiatives to keep people informed about the insurance policies available, whichare expected to drive the growth of the farm insurance market during the forecast period.
Key benefits of the report:
- This study presents analytical depiction of the global farm insurancemarket along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the market share.
- The current market is quantitatively analyzed to highlight the global farm insurancemarket growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the market.
Questions answered in the farm insurancemarket research report:
- Which are the leading players active in the global farm insurancemarket?
- What would be the detailed impact of COVID-19 on the global farm insurancemarket?
- What are current trends that would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the global farm insurancemarket?
- What are the projections for the future that would help in taking further strategic steps?
Farm Insurance Market Report Highlights
By Distribution Channel
Key Market Players
Sompo International Holdings Limited, Tokio Marine HCC, PICC, Fairfax Financial Holdings Limited, American International Group Inc., ICICI Lombard General Insurance Company Limited, Zurich, American Financial Group Inc., QBE Insurance Group Limited, Chubb