The global Crop Insurance Market generated $34.05 billion in 2020, and is estimated to generate $54.30 billion by 2027, registering a CAGR of 6.5% from 2020 to 2027.
Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities. The two general categories of crop insurance are called crop-yield insurance and crop-revenue insurance. On average, the federal government subsidizes 64 percent of the premium. In 2020, crop insurance policies covered almost 380 million acres. Major crops are insurable in most counties where they are grown, and approximately 90% of U.S. crop acreage is insured under the federal crop insurance program. Four crops corn, cotton, soybeans, and wheat typically account for more than 70% of total enrolled acres. For these major crops, a large share of plantings is covered by crop insurance.
Major Competitors in the crop insurance market includes China United Insurance, American Financial Group, Archer Daniels Midland, China Huanog Property & Casualty Insurance, CGB Diversified Services, Anxin Agricultural Insurance.
In India 2020- The lockdown has slowed down claim settlements of crop insurance scheme, with only 64% of losses in last year’s kharif season cleared so far, as many states have made tardy progress, officials said. “Claim settlement progress has been impressive in Himachal Pradesh, Uttar Pradesh and Maharashtra, where almost all the claims have been settled. But in states like Jharkhand, Karnataka and Madhya Pradesh, there is zero disbursement,” a government official said.
Private non-life insurer Bharti AXA General Insurance on Oct 2020 said it has received Rs 800 crore worth crop insurance mandate from Maharashtra and Karnataka governments to insure farmers in both the states under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
The PMFBY offers insurance cover to farmers against losses of crops during the entire cycle, from preparation of sowing to harvesting and post-harvest, due to poor yield.
Oct. 26, 2020-- American Financial Group, Inc. announced on that it has entered into a reinsurance agreement with Commonwealth Annuity and Life Insurance Company (“Commonwealth”), a subsidiary of Global Atlantic Financial Group Limited (“Global Atlantic”). Through its subsidiaries, Global Atlantic offers a broad range of retirement, life and reinsurance products, and is rated “A” by A.M. Best. Under the terms of the agreement, AFG’s Annuity subsidiary, Great American Life Insurance Company, ceded approximately $5.7 billion of inforce traditional fixed and indexed annuities, representing approximately 15% of its inforce business, and transferred related investment assets to Commonwealth.
Marfrig and ADM -10 Oct 2020 announced the completion of regulatory approvals and the formal launch of PlantPlus Foods, a joint venture that will offer a wide range of finished plant-based food products across North and South America, backed by unmatched technology, scale and experience. Marfrig, one of the world’s leading beef producers and the world’s largest beef patty producer, owns 70 percent of the venture; ADM, a leading global nutrition company, is a 30 percent owner. Marfrig will be responsible for finished product production and distribution, utilizing its facilities in South America, mainly in Várzea Grande, in the United States.
Segment by Type, the Agricultural Crop Insurance market is segmented into MPCI, Hail, etc. Segment by Application, the Agricultural Crop Insurance market is segmented into Digital and Direct Channel, Bancassurance, Agencies, Brokers, etc. based on region it has been segmented into North America, Europe, Asia-Pacific and Row. 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. Further, Asia-Pacific is expected to witness the highest CAGR of 8.1% from 2020 to 2027, owing to rise in agricultural production activity and adoption of advanced technologies in the region.