Agriculture Parametric Insurance Market
Description
The agricultural parametric insurance market was valued at $5,889.6 million in 2023 and is estimated to reach $11,340.3 million by 2033, exhibiting a CAGR of 6.5% from 2024 to 2033. Agricultural parametric insurance is a financial product designed to protect farmers against specific weather-related risks, such as droughts or excessive rainfall. Unlike traditional insurance, which requires detailed loss assessments, parametric insurance triggers payouts based on predefined weather parameters, like rainfall levels or temperature thresholds, measured by reliable data sources. This approach enables quicker and more transparent compensation, allowing farmers to receive timely support when adverse weather events occur.
The global agricultural parametric insurance market is witnessing robust growth due to factors such as increase in recognition of the benefits of parametric insurance in mitigating agricultural risks and rise in occurrence of climate-related events such as droughts, floods, and storms. As per a study published by the Food and Agriculture Organization of the United Nations, drought is the leading cause of agricultural production losses in least developed countries and low- and middle-income countries, accounting for over 34% of crop and livestock production losses. Between 2008 and 2018, these losses amounted to approximately $37 billion. In addition, increase government initiatives to support victims of climate-related disasters significantly contributes toward the market growth. For instance, organizations like the African Risk Capacity Group (ARC) have been instrumental in providing rapid insurance payouts to victims of climate-related disasters across Africa, employing parametric insurance to issue payouts based on set rainfall deviations during droughts, floods, or cyclones. Moreover, increase in demand for tailored insurance solutions acts as the key driving force of the global market. This is attributed to the fact that parametric insurance offers tailored solutions that can be adjusted to a customer's specific budget and needs. This flexibility allows for bespoke indexing and payout structures, making it an attractive option for farmers seeking coverage that aligns with their unique risk profiles. Furthermore, the integration of blockchain technology in insurance operations significantly fosters the market growth. Blockchain technology provides a secure, transparent, and decentralized method for record-keeping and information sharing in the insurance industry. This system employs smart contracts, programmable rules that execute automatically when predefined conditions are met, eliminating human involvement and enhancing efficiency, accuracy, and trust. However, lack of understanding about how parametric insurance works can lead to low adoption rates among farmers, thus hampering the market growth. Moreover, In some regions, the absence of clear regulations governing parametric insurance can create uncertainty for both insurers and policyholders, potentially hindering the market growth. On the contrary, the development of advanced technologies, including Earth Observation (EO) data, has enhanced the accuracy and efficiency of parametric insurance products. EO images enable insurers to measure observable and quantifiable parameters like soil moisture and vegetation growth, facilitating the calculation of indices that trigger payouts when natural disasters cause crop damage. Such developments are expected to offer remunerative opportunities for the expansion of the global market during the forecast period.
The global agriculture parametric insurance market is segmented into type, provide channel, and region. By type, the market is divided into natural catastrophes insurance, specialty insurance, and others. Depending on provider channel, it is fragmented into brokers and insurance provider.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the agricultural parametric insurance market analysis from 2023 to 2033 to identify the prevailing agricultural parametric insurance market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the agricultural parametric insurance market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global agricultural parametric insurance market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
Natural Catastrophes Insurance
Specialty Insurance
Others
By Provider channel
Insurance Providers Companies
Brokers
By Region
North America
U.S.
Canada
Europe
France
Germany
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market Players
AXA XL
SCOR SE
Munich Re
Sompo Holdings, Inc.
Arbol
Chubb Limited
Swiss Re
Hannover Rück SE
Assicurazioni Generali S.p.A.
Liberty Mutual Reinsurance
Descartes Inc.
Arthur J. Gallagher & Co.
Allianz
Willis Towers Watson PLC.The research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.
The global agricultural parametric insurance market is witnessing robust growth due to factors such as increase in recognition of the benefits of parametric insurance in mitigating agricultural risks and rise in occurrence of climate-related events such as droughts, floods, and storms. As per a study published by the Food and Agriculture Organization of the United Nations, drought is the leading cause of agricultural production losses in least developed countries and low- and middle-income countries, accounting for over 34% of crop and livestock production losses. Between 2008 and 2018, these losses amounted to approximately $37 billion. In addition, increase government initiatives to support victims of climate-related disasters significantly contributes toward the market growth. For instance, organizations like the African Risk Capacity Group (ARC) have been instrumental in providing rapid insurance payouts to victims of climate-related disasters across Africa, employing parametric insurance to issue payouts based on set rainfall deviations during droughts, floods, or cyclones. Moreover, increase in demand for tailored insurance solutions acts as the key driving force of the global market. This is attributed to the fact that parametric insurance offers tailored solutions that can be adjusted to a customer's specific budget and needs. This flexibility allows for bespoke indexing and payout structures, making it an attractive option for farmers seeking coverage that aligns with their unique risk profiles. Furthermore, the integration of blockchain technology in insurance operations significantly fosters the market growth. Blockchain technology provides a secure, transparent, and decentralized method for record-keeping and information sharing in the insurance industry. This system employs smart contracts, programmable rules that execute automatically when predefined conditions are met, eliminating human involvement and enhancing efficiency, accuracy, and trust. However, lack of understanding about how parametric insurance works can lead to low adoption rates among farmers, thus hampering the market growth. Moreover, In some regions, the absence of clear regulations governing parametric insurance can create uncertainty for both insurers and policyholders, potentially hindering the market growth. On the contrary, the development of advanced technologies, including Earth Observation (EO) data, has enhanced the accuracy and efficiency of parametric insurance products. EO images enable insurers to measure observable and quantifiable parameters like soil moisture and vegetation growth, facilitating the calculation of indices that trigger payouts when natural disasters cause crop damage. Such developments are expected to offer remunerative opportunities for the expansion of the global market during the forecast period.
The global agriculture parametric insurance market is segmented into type, provide channel, and region. By type, the market is divided into natural catastrophes insurance, specialty insurance, and others. Depending on provider channel, it is fragmented into brokers and insurance provider.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the agricultural parametric insurance market analysis from 2023 to 2033 to identify the prevailing agricultural parametric insurance market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the agricultural parametric insurance market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global agricultural parametric insurance market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
Natural Catastrophes Insurance
Specialty Insurance
Others
By Provider channel
Insurance Providers Companies
Brokers
By Region
North America
U.S.
Canada
Europe
France
Germany
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market Players
AXA XL
SCOR SE
Munich Re
Sompo Holdings, Inc.
Arbol
Chubb Limited
Swiss Re
Hannover Rück SE
Assicurazioni Generali S.p.A.
Liberty Mutual Reinsurance
Descartes Inc.
Arthur J. Gallagher & Co.
Allianz
Willis Towers Watson PLC.The research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.
Table of Contents
285 Pages
- CHAPTER 1: INTRODUCTION
- 1.1. Report description
- 1.2. Key market segments
- 1.3. Key benefits to the stakeholders
- 1.4. Research methodology
- 1.4.1. Primary research
- 1.4.2. Secondary research
- 1.4.3. Analyst tools and models
- CHAPTER 2: EXECUTIVE SUMMARY
- 2.1. CXO perspective
- CHAPTER 3: MARKET OVERVIEW
- 3.1. Market definition and scope
- 3.2. Key findings
- 3.2.1. Top impacting factors
- 3.2.2. Top investment pockets
- 3.3. Porter’s five forces analysis
- 3.3.1. Moderate bargaining power of suppliers
- 3.3.2. Moderate to high threat of new entrants
- 3.3.3. Moderate to high threat of substitutes
- 3.3.4. High intensity of rivalry
- 3.3.5. Low to moderate bargaining power of buyers
- 3.4. Market dynamics
- 3.4.1. Drivers
- 3.4.1.1. Government Support and Policy Initiatives
- 3.4.1.2. Demand for Faster Claims Processing
- 3.4.2. Restraints
- 3.4.2.1. Limited Awareness of Agriculture Parametric Insurance in Rural Areas
- 3.4.3. Opportunities
- 3.4.3.1. High Growth Potential in Emerging Countries
- 3.5. Technology Landscape
- CHAPTER 4: AGRICULTURAL PARAMETRIC INSURANCE MARKET, BY TYPE
- 4.1. Overview
- 4.1.1. Market size and forecast
- 4.2. Natural Catastrophes Insurance
- 4.2.1. Key market trends, growth factors and opportunities
- 4.2.2. Market size and forecast, by region
- 4.2.3. Market share analysis by country
- 4.3. Specialty Insurance
- 4.3.1. Key market trends, growth factors and opportunities
- 4.3.2. Market size and forecast, by region
- 4.3.3. Market share analysis by country
- 4.4. Others
- 4.4.1. Key market trends, growth factors and opportunities
- 4.4.2. Market size and forecast, by region
- 4.4.3. Market share analysis by country
- CHAPTER 5: AGRICULTURAL PARAMETRIC INSURANCE MARKET, BY PROVIDER CHANNEL
- 5.1. Overview
- 5.1.1. Market size and forecast
- 5.2. Insurance Providers Companies
- 5.2.1. Key market trends, growth factors and opportunities
- 5.2.2. Market size and forecast, by region
- 5.2.3. Market share analysis by country
- 5.3. Brokers
- 5.3.1. Key market trends, growth factors and opportunities
- 5.3.2. Market size and forecast, by region
- 5.3.3. Market share analysis by country
- CHAPTER 6: AGRICULTURAL PARAMETRIC INSURANCE MARKET, BY REGION
- 6.1. Overview
- 6.1.1. Market size and forecast By Region
- 6.2. North America
- 6.2.1. Key market trends, growth factors and opportunities
- 6.2.2. Market size and forecast, by Type
- 6.2.3. Market size and forecast, by Provider channel
- 6.2.4. Market size and forecast, by country
- 6.2.4.1. U.S.
- 6.2.4.1.1. Market size and forecast, by Type
- 6.2.4.1.2. Market size and forecast, by Provider channel
- 6.2.4.2. Canada
- 6.2.4.2.1. Market size and forecast, by Type
- 6.2.4.2.2. Market size and forecast, by Provider channel
- 6.3. Europe
- 6.3.1. Key market trends, growth factors and opportunities
- 6.3.2. Market size and forecast, by Type
- 6.3.3. Market size and forecast, by Provider channel
- 6.3.4. Market size and forecast, by country
- 6.3.4.1. France
- 6.3.4.1.1. Market size and forecast, by Type
- 6.3.4.1.2. Market size and forecast, by Provider channel
- 6.3.4.2. Germany
- 6.3.4.2.1. Market size and forecast, by Type
- 6.3.4.2.2. Market size and forecast, by Provider channel
- 6.3.4.3. UK
- 6.3.4.3.1. Market size and forecast, by Type
- 6.3.4.3.2. Market size and forecast, by Provider channel
- 6.3.4.4. Italy
- 6.3.4.4.1. Market size and forecast, by Type
- 6.3.4.4.2. Market size and forecast, by Provider channel
- 6.3.4.5. Spain
- 6.3.4.5.1. Market size and forecast, by Type
- 6.3.4.5.2. Market size and forecast, by Provider channel
- 6.3.4.6. Rest of Europe
- 6.3.4.6.1. Market size and forecast, by Type
- 6.3.4.6.2. Market size and forecast, by Provider channel
- 6.4. Asia-Pacific
- 6.4.1. Key market trends, growth factors and opportunities
- 6.4.2. Market size and forecast, by Type
- 6.4.3. Market size and forecast, by Provider channel
- 6.4.4. Market size and forecast, by country
- 6.4.4.1. China
- 6.4.4.1.1. Market size and forecast, by Type
- 6.4.4.1.2. Market size and forecast, by Provider channel
- 6.4.4.2. Japan
- 6.4.4.2.1. Market size and forecast, by Type
- 6.4.4.2.2. Market size and forecast, by Provider channel
- 6.4.4.3. India
- 6.4.4.3.1. Market size and forecast, by Type
- 6.4.4.3.2. Market size and forecast, by Provider channel
- 6.4.4.4. South Korea
- 6.4.4.4.1. Market size and forecast, by Type
- 6.4.4.4.2. Market size and forecast, by Provider channel
- 6.4.4.5. Australia
- 6.4.4.5.1. Market size and forecast, by Type
- 6.4.4.5.2. Market size and forecast, by Provider channel
- 6.4.4.6. Rest of Asia-Pacific
- 6.4.4.6.1. Market size and forecast, by Type
- 6.4.4.6.2. Market size and forecast, by Provider channel
- 6.5. LAMEA
- 6.5.1. Key market trends, growth factors and opportunities
- 6.5.2. Market size and forecast, by Type
- 6.5.3. Market size and forecast, by Provider channel
- 6.5.4. Market size and forecast, by country
- 6.5.4.1. Latin America
- 6.5.4.1.1. Market size and forecast, by Type
- 6.5.4.1.2. Market size and forecast, by Provider channel
- 6.5.4.2. Middle East
- 6.5.4.2.1. Market size and forecast, by Type
- 6.5.4.2.2. Market size and forecast, by Provider channel
- 6.5.4.3. Africa
- 6.5.4.3.1. Market size and forecast, by Type
- 6.5.4.3.2. Market size and forecast, by Provider channel
- CHAPTER 7: COMPETITIVE LANDSCAPE
- 7.1. Introduction
- 7.2. Top winning strategies
- 7.3. Product mapping of top 10 player
- 7.4. Competitive dashboard
- 7.5. Competitive heatmap
- 7.6. Top player positioning, 2023
- CHAPTER 8: COMPANY PROFILES
- 8.1. Chubb Limited
- 8.1.1. Company overview
- 8.1.2. Key executives
- 8.1.3. Company snapshot
- 8.1.4. Operating business segments
- 8.1.5. Product portfolio
- 8.1.6. Business performance
- 8.2. SCOR SE
- 8.2.1. Company overview
- 8.2.2. Key executives
- 8.2.3. Company snapshot
- 8.2.4. Operating business segments
- 8.2.5. Product portfolio
- 8.2.6. Business performance
- 8.3. Swiss Re
- 8.3.1. Company overview
- 8.3.2. Key executives
- 8.3.3. Company snapshot
- 8.3.4. Operating business segments
- 8.3.5. Product portfolio
- 8.3.6. Business performance
- 8.4. Hannover Rück SE
- 8.4.1. Company overview
- 8.4.2. Key executives
- 8.4.3. Company snapshot
- 8.4.4. Operating business segments
- 8.4.5. Product portfolio
- 8.4.6. Business performance
- 8.5. AXA XL
- 8.5.1. Company overview
- 8.5.2. Key executives
- 8.5.3. Company snapshot
- 8.5.4. Operating business segments
- 8.5.5. Product portfolio
- 8.5.6. Business performance
- 8.6. Munich Re
- 8.6.1. Company overview
- 8.6.2. Key executives
- 8.6.3. Company snapshot
- 8.6.4. Operating business segments
- 8.6.5. Product portfolio
- 8.6.6. Business performance
- 8.7. Sompo Holdings, Inc.
- 8.7.1. Company overview
- 8.7.2. Key executives
- 8.7.3. Company snapshot
- 8.7.4. Operating business segments
- 8.7.5. Product portfolio
- 8.7.6. Business performance
- 8.8. Liberty Mutual Reinsurance
- 8.8.1. Company overview
- 8.8.2. Key executives
- 8.8.3. Company snapshot
- 8.8.4. Operating business segments
- 8.8.5. Product portfolio
- 8.8.6. Business performance
- 8.8.7. Key strategic moves and developments
- 8.9. Assicurazioni Generali S.p.A.
- 8.9.1. Company overview
- 8.9.2. Key executives
- 8.9.3. Company snapshot
- 8.9.4. Operating business segments
- 8.9.5. Product portfolio
- 8.9.6. Business performance
- 8.10. Arbol
- 8.10.1. Company overview
- 8.10.2. Key executives
- 8.10.3. Company snapshot
- 8.10.4. Operating business segments
- 8.10.5. Product portfolio
- 8.11. Allianz
- 8.11.1. Company overview
- 8.11.2. Key executives
- 8.11.3. Company snapshot
- 8.11.4. Operating business segments
- 8.11.5. Product portfolio
- 8.11.6. Business performance
- 8.11.7. Key strategic moves and developments
- 8.12. Descartes Inc.
- 8.12.1. Company overview
- 8.12.2. Key executives
- 8.12.3. Company snapshot
- 8.12.4. Operating business segments
- 8.12.5. Product portfolio
- 8.13. Arthur J. Gallagher & Co.
- 8.13.1. Company overview
- 8.13.2. Key executives
- 8.13.3. Company snapshot
- 8.13.4. Operating business segments
- 8.13.5. Product portfolio
- 8.13.6. Business performance
- 8.14. Willis Towers Watson PLC.
- 8.14.1. Company overview
- 8.14.2. Key executives
- 8.14.3. Company snapshot
- 8.14.4. Operating business segments
- 8.14.5. Product portfolio
- 8.14.6. Business performance
- 8.14.7. Key strategic moves and developments
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