Global crop insurers expand with 8.7% annual growth rate

Asia-Pacific is expected to see the fastest growth.

The global crop insurance market is projected to grow from $39.1b in 2022 to $88b by 2032, with a compound annual growth rate of 8.7%, according to Allied Market Research.

Growth is being fueled by rising demand for protection against natural disasters such as floods, drought, and hail, alongside increasing adoption of advanced technologies like satellite imagery, drones, IoT, and AI to provide more customised and efficient coverage.

Crop insurance primarily includes two types: multi-peril crop insurance (MPCI) and crop-hail insurance. 

Despite growth, the sector faces challenges such as limited awareness of premiums and delays in claims processing.

Asia-Pacific is expected to see the fastest growth, driven by rising climate-related risks, greater government support, and increased awareness of crop insurance in emerging markets.