Crop insurance set to grow 6.9% annually through 2029

Growth is driven by use of advanced weather prediction systems.

The harvest period crop insurance market is set to rise from $12.95b in 2024 to $13.89b in 2025, reflecting a compound annual growth rate (CAGR) of 7.2%, according to The Business Research Company. 

The market is expected to reach $18.12b by 2029, with a CAGR of 6.9%.

Growth has been supported in recent years by wider use of advanced weather prediction systems, government subsidies, greater awareness of crop risk, and more frequent natural disasters. 

Looking ahead, expansion is expected to be driven by climate change impacts, increasing demand for customised insurance products, greater government incentives, and advances in satellite and digital technologies.

Key trends include the use of artificial intelligence for risk assessment, blockchain for transparent claims, mobile-based insurance platforms, and new customised products. Precision agriculture is also boosting demand. 

By reducing risks during harvest, crop insurance enables farmers to invest in advanced farming technologies. 

Insurers are also turning to satellite index-based policies, which rely on satellite data rather than field assessments to determine crop yields and payouts, aiming to speed up claims and improve accuracy.