APAC crop insurance seen rising 34% as climate risks intensify

Worldwide gains total $16b with 6.3% annual expansion.

The Asia-Pacific (APAC) crop insurance sector is projected to dominate the global market share through 2029, according to Technavio.

The region will also grow 34% in terms of compound annual growth rate (CAGR). Globally, the industry will see a 6.3% CAGR or a $15.62b increase.

Growth is being driven mainly by more frequent extreme weather events linked to global warming, which are increasing financial risks for farmers.

By product, indemnity-based crop insurance remained the largest segment, valued at $33.35b in 2023. By type, crop yield insurance accounted for the biggest share of market revenue that year.

The overall market opportunity is estimated at $63.96b, reflecting rising demand for protection against weather-related losses such as droughts, floods, and storms. 

Researchers noted that climate change has intensified these risks, with global temperatures rising by about 0.19 degrees Celsius per decade since 1880, based on data from the Goddard Institute for Space Studies. 

This has led to higher insurance uptake as farmers seek to protect income and manage volatility.