According to DataM Intelligence's report Agricultural Insurance Market Size, Share, Industry, Forecast & Outlook (2024-2031), which was released today, the global agricultural insurance market is growing at an accelerated rate. Demand for insurance solutions that safeguard livelihoods, crop yields, and incomes is rising sharply as farmers deal with increased climate pressures, supply chain volatility, and rising input costs.

Key Highlights & Insights

  • The global agricultural insurance market was valued at approximately USD 3,214.7 million in 2022 and is projected to grow to about USD 5,482.2 million by 2030, reflecting a compound annual growth rate (CAGR) of 6.9 % from 2024 through 2031.

  • By product type, Multi-Peril Crop Insurance (MPCI) holds the largest share, driven by its ability to offer broad protection against multiple risks such as bad weather, pest infestations, and disease. Other rising segments include Greenhouse Insurance, Aquaculture Insurance, and Managed Crop Hail Insurance.

  • By region, North America currently dominates in terms of market size, thanks to well-established insurance infrastructure and strong government programs. Asia-Pacific is expected to be the fastest-growing region, due to large populations dependent on farming, increasing awareness of insurance, and supportive policy frameworks. 

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Recent Developments in 2025

  • In August 2025, the U.S. Department of Agriculture expanded its subsidy for the Enhanced Coverage Option (ECO) under the Federal Crop Insurance Program: the government now covers 65 % of the ECO premium, up from around 44 %, making broader insurance more affordable for many farmers.

  • In March 2025, UK insurer NFU Mutual reported that its farm insurance coverage has increased substantially, with between 65–75% of UK farms now insured, riding a recovery in profitability in the agriculture sector. 

  • Governments in several Asia-Pacific countries are increasing their investments in index-based insurance and parametric insurance products, using satellite/rainfall/weather-trigger data to streamline claims and reduce losses. Smallholder farmers in regions with volatile weather are being increasingly targeted. (India’s PMFBY scheme and similar initiatives are part of this trend.)

  • Insurtech and digitization are accelerating: more insurers are deploying AI, remote sensing, and data analytics for better risk modelling, loss assessment, and faster claims settlement. This is helping reduce frictions, especially in developing markets.

Strategic Outlook

To capitalize on these trends, agriculture insurers, policymakers, and stakeholders should consider:

  1. Enhancing affordability through subsidy programs, especially for small and marginal farmers, so that insurance becomes accessible rather than a luxury.

  2. Increasing use of parametric or index-insurance models that offer faster, predictable payouts, and operate transparently.

  3. Leveraging technology — AI, satellite imagery, remote monitoring — to improve loss estimation, underwriting, and to reduce administrative and claim delays.

  4. Incorporating sustainability goals (e.g. drought-resistance farming, regenerative practices) into insurance products and potentially rewarding practices that reduce climate risk.

  5. Strengthening regulatory frameworks and public-private partnerships to ensure that insurance schemes are well-governed, financially sound, and trusted by farmers.

About DataM Intelligence

DataM Intelligence is a market research and consulting firm specializing in strategic insights across advanced materials, insurance & risk, sustainability, clean energy, and industrial markets. The firm provides syndicated and customized research, helping clients navigate risk, opportunity, and innovation in evolving markets.

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Sai Kiran
DataM Intelligence 4Market Research LLP
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