PORTLAND, Ore., July. 24, 2024 /PRNewswire/ -- Allied Market Research has recently published a report,
titled, "Agricultural Insurance Market by Product Type (Multi-peril Crop Insurance (MPCI), Crop-hail
Insurance, Livestock Insurance, Others), by Distribution Channel (Banks, Insurance Companies, Others):
Global Opportunity Analysis and Industry Forecast, 2023-2032". According to the report, the global
agricultural insurance market generated $38.5 billion in 2022, and is anticipated to generate $67.4 billion
by 2032, rising at a CAGR of 5.8% from 2023 to 2032.
Prime Determinants of Growth
The dependency of farmers on weather-based conditions for rain, various risks due to climate change,
and frequent occurrence of plant diseases are the factors expected to drive the growth of the global
agricultural insurance market in the forecast period from 2023 to 2032. However, the high cost of premiums
and the inability of this insurance to reach marginal farmers may hamper the agricultural insurance market
growth in the coming future. On the contrary, the awareness campaigns to drive the importance and advantages
of agricultural insurance is expected to offer remunerative opportunities for the expansion of the agricultural
insurance market during the forecast period.
Product Type: Multi-peril Crop Insurance (MPCI) Sub-segment to be Most Dominant by 2032
The multi-peril crop insurance (MPCI) sub-segment of the global agricultural insurance market accounted
for the largest share of 59.6% in 2022 and is expected to grow at a CAGR of 6.0% during the forecast period.
This is mainly because multi-peril crop insurance (MPCI) policies protect agricultural producers against a
variety of naturally occurring hazards. In addition to the dangers covered by ordinary loss of yield coverage,
these combination plans cover value loss owing to a change in market price throughout the crop insurance period.
Distribution Channel: Banks Sub-segment to Observe Significant Growth by 2032
The banks sub-segment of the global market accounted for the highest share of 50.0% in 2022 and is projected
to rise at a CAGR of 6.1% during the forecast period. This is mainly because banks are a major source of
financial resources for farmers globally. As key financial institutions, banks have established themselves as
a primary channel for offering insurance products to farmers worldwide. Due to their extensive reach, banks
effectively bridge the gap between insurance providers and the agricultural community. By leveraging their
established networks and expertise in financial services, banks have emerged as the preferred choice for farmers
seeking reliable coverage and seamless access to insurance solutions.
Region: North America Market to Grab Highest Share by 2032
The agricultural insurance market in the North America region accounted for the largest share of 45.4% in
2022 and is predicted to continue to hold major market share by 2032. This growth is mainly due to the
government initiatives to expand infrastructure in the insurance sectors and the improving economic situation
in the region. In addition, the agricultural industry in North America is vulnerable to a broad range of
hazards, including weather variations, market volatility, and pests, due to its diversified crop and farming
practices.
Source: https://www.prnewswire.co.uk/