The crop insurance market is growing as digital underwriting helps reduce the loss ratios, government-backed subsidy programs expand and climate-driven agricultural losses increase in developed and emerging economies.
Hyderabad, India, Feb. 17, 2026 (GLOBE NEWSWIRE) — According to Mordor Intelligence’s report, the crop insurance market size is entering a strong growth phase, expanding from USD 52.28 billion in 2025 to USD 58.07 billion in 2026, and projected to reach USD 98.26 billion by 2031, advancing at a CAGR of 11.07%. This momentum is reinforced by increasing climate uncertainty, intensifying the need for structured risk protection across agricultural economies. Expanding government-supported insurance frameworks are improving farmer participation, particularly in developing regions, while large-scale national programs across North America and Asia continue to deepen coverage penetration. At the same time, advancements in satellite-based monitoring, connected farm sensors, and AI-enabled underwriting models are streamlining risk assessment and accelerating claims settlements, making crop insurance more efficient and accessible worldwide.
Crop Insurance Market Share by Region
Asia-Pacific continues to emerge as the most dynamic region for crop insurance expansion, supported by strong policy backing and widening farmer participation. Large-scale national programs in countries such as India are extending protection across vast agricultural districts, while China is advancing innovative models that combine insurance coverage with commodity risk management tools. In Australia, parametric drought solutions linked to official meteorological data are improving transparency and confidence in underserved farming areas. Growing rural incomes, expanding digital distribution channels, and sustained government commitment are accelerating adoption across Southeast Asia and South Asia.
North America accounted for a significant crop insurance market share in 2025, supported by a well-established federal framework in the United States that subsidizes a substantial portion of farmer premiums and protects the majority of cultivated acreage. Rising cumulative weather-related claims over the past two decades have highlighted increasing agricultural risk, encouraging discussions around enhanced subsidy structures and expanded coverage options. In parallel, Canada’s AgriInsurance program and ongoing reforms in Mexico are strengthening index-based solutions, while more frequent drought conditions across key farming regions are accelerating demand for supplemental coverage and reinforcing regional market depth.
Crop Insurance Market Growth Drivers
Agricultural Lending Expansion Drives Insurance Adoption
Growing access to agricultural credit in emerging economies is accelerating the integration of insurance with farm financing. Lenders are increasingly bundling coverage with crop loans, as insured borrowers typically present stronger repayment profiles. Recent regulatory adjustments in countries such as India are enabling financial institutions to secure additional reinsurance capacity, supporting the expansion of bundled offerings. Meanwhile, mobile-based lenders across parts of Africa are embedding micro-insurance into seasonal input loans and leveraging digital wallets for seamless premium collection. As rural credit systems deepen, more smallholder farmers are entering formal risk protection frameworks, strengthening the overall resilience of agricultural finance.
Climate Volatility Intensifies Risk Protection Needs
Rising climate-related crop damage is rapidly reshaping global crop insurance market trends, as unpredictable weather patterns increase financial exposure for farmers and insurers alike. In the United States, weather-linked claims have accounted for many total payouts over the past two decades, reflecting the growing severity and frequency of extreme events. Across Europe, substantial annual agricultural losses remain underinsured, underscoring a persistent protection gap. Research further suggests that incremental temperature increases could significantly elevate premium outlays in major farming economies. With shifting rainfall cycles and higher yield variability, particularly in key grain-producing regions, insurance is increasingly viewed as a critical safeguard rather than an optional risk management tool.
Major Segments Highlighted in the Crop Insurance Market Report
By Insurance Type
- Multi-Peril Crop Insurance (MPCI)
- Actual Production History / Yield
- Revenue Protection
- Weather-Index / Parametric
- Named-Peril (e.g., hail)
By Risk Covered
- Sowing / Germination
- Standing Crop Loss
- Post-Harvest Loss
- Localized Calamities
- Prevented Planting & Replant
By Distribution Channel
- Banks & Agricultural Credit Institutions
- Direct (Insurer & Government Portals)
- Brokers & Agents
- Digital Platforms & Mobile Applications
By Provider Type
- Public / Government Insurers
- Private Insurers
- Public-Private Partnerships (PPP)
- Mutual & Captive Schemes
By Crop Type
- Cereals & Grains
- Oilseeds & Pulses
- Fruits & Vegetables
- Commercial Crops (Cotton, Sugarcane, etc.)
- Other Crops
By Farm Size
- Smallholder (Less Than 2 ha)
- Medium (2–10 ha)
- Large (Greater Than 10 ha)
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Rest of Asia-Pacific
- Middle East & Africa
- UAE
- Saudi Arabia
- Turkey
- South Africa
- Nigeria
- Kenya
- Rest of Middle East & Africa
Overview – Crop Insurance Industry
| Study Period | 2020-2031 |
| Market Size in 2026 | USD 58.07 Billion |
| Market Size Forecast 2031 | USD 98.26 Billion |
| Industry Expansion | Growing at a CAGR of 11.07% during 2026-2031 |
| Fastest Growing Market for 2026-2031 | Asia Pacific projected to record the fastest growth rate |
| Segments Covered | By Insurance Type, By Risk Covered, By Distribution Channel, By Provider Type, By Crop Type, By Farm Size and By Geography |
| Regions Covered | North America, Europe, Asia-Pacific, South America, the Middle East, and Africa |
| Customization Scope | Choose tailored purchase options designed to align precisely with your research requirements. |
Crop insurance companies cover a global market overview, industry-level insights, detailed segment analysis, available financial performance data, strategic positioning insights, competitive ranking, and market share of leading players, portfolio analysis of products and services, and recent strategic developments.
- PICC
- Chubb Ltd.
- QBE Insurance Group
- Tokio Marine HCC
- Zurich Insurance Group
- Agriculture Insurance Company of India (AIC)
- Fairfax Financial (Brit, Allied World)
- American Financial Group (Great American)
- ICICI Lombard
- Sompo Holdings
- Swiss Re Corporate Solutions
- AXA XL
- Munich Re
- Mapfre
- Farmers Mutual Hail Insurance Company
- GlobalAg Risk Solutions
- Agriculture Insurance Company of Kenya
- Agriculture Reinsurance Ltd.
- Grupo BrasilSeg
Get in-depth industry insights on the crop insurance market research report: https://www.mordorintelligence.com/industry-reports/crop-insurance-market?utm_source=globenewswire
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