
India Agriculture Insurance Market Overview, 2030
Description
India’s agriculture insurance market is one of the largest globally, encompassing crop, livestock, aquaculture, forestry, and parametric products, reflecting the country’s diverse agricultural base and exposure to climate-related risks. The sector is strategically important for food security, climate resilience, and credit access, particularly for smallholder farmers who constitute over approx. 85% of the agricultural population. Key highlights of the market include heavy subsidy dependence, with the government providing premium support through programs such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Weather-Based Crop Insurance Scheme (WBCIS), and increasing adoption of parametric products to complement traditional indemnity coverage. Technological interventions, including remote sensing, IoT weather stations, digital enrollment, and mobile-based claim settlements, are transforming operations and improving efficiency. Historically, India’s market evolved from localized indemnity-based crop insurance schemes in the 1980s and 1990s, which faced low adoption and high basis risk, to comprehensive, centrally coordinated programs launched in the 2000s. The PMFBY, introduced in 2016, marked a pivotal shift, offering multi-peril coverage for major crops, standardized premiums, and government-backed reinsurance support, significantly expanding penetration. Regional premium distribution is concentrated in states with high crop density and subsidy support, such as Punjab, Haryana, Maharashtra, Madhya Pradesh, and Uttar Pradesh, which together account for a substantial portion of total national premiums. Public-private partnerships (PPPs) underpin the market, with the government sharing risks with private insurers, reinsurers, and technology providers to enhance operational efficiency, ensure timely claims, and extend coverage to millions of farmers. These coordinated efforts have established India’s agriculture insurance market as highly structured, technology-enabled, and rapidly expanding, providing resilience against climate and market risks while supporting sustainable rural livelihoods.
According to the research report ""India Agriculture Insurance Market Overview, 2030,"" published by Bonafide Research, the India Agriculture Insurance market is anticipated to grow at more than 8.80% CAGR from 2025 to 2030.India’s agriculture insurance market is shaped by a robust regulatory and policy framework designed to enhance farmer protection, financial inclusion, and climate resilience. The government-led Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Weather-Based Crop Insurance Scheme (WBCIS) exemplify public-private partnerships (PPPs), where the central and state governments co-finance premiums while private insurers manage underwriting and claims processing. Premium subsidies typically cover 50–90% for small and marginal farmers, depending on crop type and state policies, ensuring affordability and high adoption rates. Regulatory oversight, coordinated by the Insurance Regulatory and Development Authority of India (IRDAI), mandates solvency standards, standardized policy structures, transparent claims procedures, and the use of verified data for loss assessment. Consumer protection is reinforced through grievance redressal mechanisms, helplines, and online tracking of claims, while donor-backed programs and sovereign risk pools provide additional coverage for catastrophic events. Technology and innovation are central to modernizing the sector. Blended index triggers, combining rainfall, NDVI, and soil moisture data, enable parametric payouts that complement traditional indemnity schemes. Remote sensing using high-resolution SAR and NDVI, along with IoT weather station networks, enhances yield estimation, monitoring, and risk assessment. Digital enrollment platforms and mobile money/UPI claim settlements improve farmer accessibility and reduce processing times. Advanced AI-based yield modeling and fraud detection support accurate claim assessment and operational efficiency. Several agri-insurtech startups, including GramCover, Pula, and Blue Marble, are pioneering data-driven solutions to extend coverage, lower basis risk, and facilitate scalable insurance solutions, positioning India as a technology-enabled, subsidy-backed, and resilient agricultural insurance ecosystem.
India’s agriculture insurance market is primarily structured around Crop Yield Insurance, Crop Revenue Insurance, and other specialized products, designed to address the diverse risks faced by the country’s predominantly smallholder farming population. Crop Yield Insurance is the most widely adopted type, offering indemnity-based coverage for losses caused by natural perils such as drought, floods, hail, frost, and pest infestations. It is a key component of government-backed programs like PMFBY, which subsidizes premiums and encourages adoption across states including Maharashtra, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh, where staple crops like rice, wheat, and pulses dominate. Yield insurance helps stabilize farm incomes, ensures access to agricultural credit, and supports overall food security. Crop Revenue Insurance, although less prevalent, is gaining attention in commercial and export-oriented farms. This product protects against both yield shortfalls and market price fluctuations, offering comprehensive risk mitigation for crops such as cotton, oilseeds, and horticultural produce. The “Others” category includes parametric and index-based insurance products, which utilize measurable indicators such as rainfall deficits, temperature anomalies, or NDVI vegetation indices to trigger rapid and objective payouts. It also encompasses livestock insurance, aquaculture coverage, and specialty crop policies, often integrated with digital platforms, remote sensing, and AI-driven yield modeling to enhance accuracy, reduce basis risk, and speed up claim settlements. Together, these insurance types create a layered risk management ecosystem, combining traditional indemnity solutions with innovative parametric approaches, enhancing climate resilience, financial stability, and sustainable agricultural development across India.
India’s agriculture insurance market is predominantly structured around Multi-Peril Crop Insurance (MPCI), Crop-Hail Insurance, and other specialized coverage types, reflecting the diverse climatic risks and crop profiles across the country. MPCI is the backbone of government-backed schemes such as PMFBY and WBCIS, offering protection against a wide range of perils, including drought, flood, frost, hail, pests, and diseases. It is widely adopted for staple crops such as rice, wheat, pulses, and oilseeds, particularly in high-production states like Maharashtra, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh. The government subsidizes a significant portion of premiums, ensuring affordability and broad farmer participation. Crop-Hail Insurance is a single-peril product designed to address localized and high-intensity hail events, which can severely damage horticultural and vegetable crops. It is often purchased in combination with MPCI to provide comprehensive risk protection, especially for high-value crops exposed to sudden weather extremes. The Others category includes parametric and index-based insurance, which use measurable triggers such as rainfall deficits, temperature anomalies, or NDVI vegetation indices to enable faster and more objective claims processing. Additionally, this category encompasses livestock, aquaculture, and specialty crop insurance, providing sector-specific risk mitigation. Integration with digital enrollment platforms, remote sensing, IoT weather stations, and AI-based yield modeling has further enhanced coverage accuracy and operational efficiency. Collectively, these coverage types form a layered, adaptive risk management framework, combining traditional multi-peril protection with targeted single-peril and parametric solutions, thereby strengthening climate resilience, financial stability, and sustainable agricultural development across India.
India’s agriculture insurance market employs a multi-channel distribution system, combining banks, insurance companies, and alternative channels to reach millions of smallholder and commercial farmers across diverse regions. Banks play a critical role, particularly in linking insurance with agricultural financing. Farmers applying for loans from commercial banks, regional cooperative banks, or government-backed institutions such as National Bank for Agriculture and Rural Development (NABARD) are often required or incentivized to purchase crop or livestock insurance. This integration ensures both lenders and farmers are protected against production and climate risks, enhancing financial stability and credit access. Insurance companies dominate the operational aspects of the market, providing Multi-Peril Crop Insurance (MPCI), Crop-Hail coverage, livestock, aquaculture, forestry, and parametric/index-based products. Key players include ICICI Lombard, HDFC ERGO, SBI General Insurance, and Agriculture Insurance Company of India (AIC), alongside regional mutual insurers and cooperative schemes. These insurers handle underwriting, premium collection, claims processing, and risk assessment, increasingly leveraging digital platforms, remote sensing, IoT weather data, and AI-driven yield models to improve accuracy, reduce basis risk, and accelerate payouts. The Others category includes farmer cooperatives, self-help groups, and insurtech platforms, which facilitate mobile enrollment, parametric products, and rapid claim settlements, particularly in remote or disaster-prone areas. This multi-channel distribution framework ensures comprehensive market coverage, operational efficiency, and climate-adaptive resilience. By combining private-sector expertise, banking networks, and cooperative or digital platforms, India’s agriculture insurance system successfully extends financial protection to a large and diverse farming population, supporting sustainable agricultural development and risk mitigation nationwide.
Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030
Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others
By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others
By Distribution Channel
• Banks
• Insurance Companies
• Others
Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030
Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others
By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others
By Distribution Channel
• Banks
• Insurance Companies
• Others
According to the research report ""India Agriculture Insurance Market Overview, 2030,"" published by Bonafide Research, the India Agriculture Insurance market is anticipated to grow at more than 8.80% CAGR from 2025 to 2030.India’s agriculture insurance market is shaped by a robust regulatory and policy framework designed to enhance farmer protection, financial inclusion, and climate resilience. The government-led Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Weather-Based Crop Insurance Scheme (WBCIS) exemplify public-private partnerships (PPPs), where the central and state governments co-finance premiums while private insurers manage underwriting and claims processing. Premium subsidies typically cover 50–90% for small and marginal farmers, depending on crop type and state policies, ensuring affordability and high adoption rates. Regulatory oversight, coordinated by the Insurance Regulatory and Development Authority of India (IRDAI), mandates solvency standards, standardized policy structures, transparent claims procedures, and the use of verified data for loss assessment. Consumer protection is reinforced through grievance redressal mechanisms, helplines, and online tracking of claims, while donor-backed programs and sovereign risk pools provide additional coverage for catastrophic events. Technology and innovation are central to modernizing the sector. Blended index triggers, combining rainfall, NDVI, and soil moisture data, enable parametric payouts that complement traditional indemnity schemes. Remote sensing using high-resolution SAR and NDVI, along with IoT weather station networks, enhances yield estimation, monitoring, and risk assessment. Digital enrollment platforms and mobile money/UPI claim settlements improve farmer accessibility and reduce processing times. Advanced AI-based yield modeling and fraud detection support accurate claim assessment and operational efficiency. Several agri-insurtech startups, including GramCover, Pula, and Blue Marble, are pioneering data-driven solutions to extend coverage, lower basis risk, and facilitate scalable insurance solutions, positioning India as a technology-enabled, subsidy-backed, and resilient agricultural insurance ecosystem.
India’s agriculture insurance market is primarily structured around Crop Yield Insurance, Crop Revenue Insurance, and other specialized products, designed to address the diverse risks faced by the country’s predominantly smallholder farming population. Crop Yield Insurance is the most widely adopted type, offering indemnity-based coverage for losses caused by natural perils such as drought, floods, hail, frost, and pest infestations. It is a key component of government-backed programs like PMFBY, which subsidizes premiums and encourages adoption across states including Maharashtra, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh, where staple crops like rice, wheat, and pulses dominate. Yield insurance helps stabilize farm incomes, ensures access to agricultural credit, and supports overall food security. Crop Revenue Insurance, although less prevalent, is gaining attention in commercial and export-oriented farms. This product protects against both yield shortfalls and market price fluctuations, offering comprehensive risk mitigation for crops such as cotton, oilseeds, and horticultural produce. The “Others” category includes parametric and index-based insurance products, which utilize measurable indicators such as rainfall deficits, temperature anomalies, or NDVI vegetation indices to trigger rapid and objective payouts. It also encompasses livestock insurance, aquaculture coverage, and specialty crop policies, often integrated with digital platforms, remote sensing, and AI-driven yield modeling to enhance accuracy, reduce basis risk, and speed up claim settlements. Together, these insurance types create a layered risk management ecosystem, combining traditional indemnity solutions with innovative parametric approaches, enhancing climate resilience, financial stability, and sustainable agricultural development across India.
India’s agriculture insurance market is predominantly structured around Multi-Peril Crop Insurance (MPCI), Crop-Hail Insurance, and other specialized coverage types, reflecting the diverse climatic risks and crop profiles across the country. MPCI is the backbone of government-backed schemes such as PMFBY and WBCIS, offering protection against a wide range of perils, including drought, flood, frost, hail, pests, and diseases. It is widely adopted for staple crops such as rice, wheat, pulses, and oilseeds, particularly in high-production states like Maharashtra, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh. The government subsidizes a significant portion of premiums, ensuring affordability and broad farmer participation. Crop-Hail Insurance is a single-peril product designed to address localized and high-intensity hail events, which can severely damage horticultural and vegetable crops. It is often purchased in combination with MPCI to provide comprehensive risk protection, especially for high-value crops exposed to sudden weather extremes. The Others category includes parametric and index-based insurance, which use measurable triggers such as rainfall deficits, temperature anomalies, or NDVI vegetation indices to enable faster and more objective claims processing. Additionally, this category encompasses livestock, aquaculture, and specialty crop insurance, providing sector-specific risk mitigation. Integration with digital enrollment platforms, remote sensing, IoT weather stations, and AI-based yield modeling has further enhanced coverage accuracy and operational efficiency. Collectively, these coverage types form a layered, adaptive risk management framework, combining traditional multi-peril protection with targeted single-peril and parametric solutions, thereby strengthening climate resilience, financial stability, and sustainable agricultural development across India.
India’s agriculture insurance market employs a multi-channel distribution system, combining banks, insurance companies, and alternative channels to reach millions of smallholder and commercial farmers across diverse regions. Banks play a critical role, particularly in linking insurance with agricultural financing. Farmers applying for loans from commercial banks, regional cooperative banks, or government-backed institutions such as National Bank for Agriculture and Rural Development (NABARD) are often required or incentivized to purchase crop or livestock insurance. This integration ensures both lenders and farmers are protected against production and climate risks, enhancing financial stability and credit access. Insurance companies dominate the operational aspects of the market, providing Multi-Peril Crop Insurance (MPCI), Crop-Hail coverage, livestock, aquaculture, forestry, and parametric/index-based products. Key players include ICICI Lombard, HDFC ERGO, SBI General Insurance, and Agriculture Insurance Company of India (AIC), alongside regional mutual insurers and cooperative schemes. These insurers handle underwriting, premium collection, claims processing, and risk assessment, increasingly leveraging digital platforms, remote sensing, IoT weather data, and AI-driven yield models to improve accuracy, reduce basis risk, and accelerate payouts. The Others category includes farmer cooperatives, self-help groups, and insurtech platforms, which facilitate mobile enrollment, parametric products, and rapid claim settlements, particularly in remote or disaster-prone areas. This multi-channel distribution framework ensures comprehensive market coverage, operational efficiency, and climate-adaptive resilience. By combining private-sector expertise, banking networks, and cooperative or digital platforms, India’s agriculture insurance system successfully extends financial protection to a large and diverse farming population, supporting sustainable agricultural development and risk mitigation nationwide.
Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030
Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others
By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others
By Distribution Channel
• Banks
• Insurance Companies
• Others
Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030
Aspects covered in this report
• Agriculture Insurance Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Types
• Crop Yeild Insurance
• Crop Revenue Insurance
• Others
By Coverage
• Multi-Peril Crop Insurance (MPCI)
• Crop-Hail Insurance
• Others
By Distribution Channel
• Banks
• Insurance Companies
• Others
Table of Contents
76 Pages
- 1. Executive Summary
- 2. Market Structure
- 2.1. Market Considerate
- 2.2. Assumptions
- 2.3. Limitations
- 2.4. Abbreviations
- 2.5. Sources
- 2.6. Definitions
- 3. Research Methodology
- 3.1. Secondary Research
- 3.2. Primary Data Collection
- 3.3. Market Formation & Validation
- 3.4. Report Writing, Quality Check & Delivery
- 4. India Geography
- 4.1. Population Distribution Table
- 4.2. India Macro Economic Indicators
- 5. Market Dynamics
- 5.1. Key Insights
- 5.2. Recent Developments
- 5.3. Market Drivers & Opportunities
- 5.4. Market Restraints & Challenges
- 5.5. Market Trends
- 5.6. Supply chain Analysis
- 5.7. Policy & Regulatory Framework
- 5.8. Industry Experts Views
- 6. India Agriculture Insurance Market Overview
- 6.1. Market Size By Value
- 6.2. Market Size and Forecast, By Types
- 6.3. Market Size and Forecast, By Coverage
- 6.4. Market Size and Forecast, By Distribution Channel
- 6.5. Market Size and Forecast, By Region
- 7. India Agriculture Insurance Market Segmentations
- 7.1. India Agriculture Insurance Market, By Types
- 7.1.1. India Agriculture Insurance Market Size, By Crop Yeild Insurance, 2019-2030
- 7.1.2. India Agriculture Insurance Market Size, By Crop Revenue Insurance, 2019-2030
- 7.1.3. India Agriculture Insurance Market Size, By Others, 2019-2030
- 7.2. India Agriculture Insurance Market, By Coverage
- 7.2.1. India Agriculture Insurance Market Size, By Multi-Peril Crop Insurance (MPCI), 2019-2030
- 7.2.2. India Agriculture Insurance Market Size, By Crop-Hail Insurance, 2019-2030
- 7.2.3. India Agriculture Insurance Market Size, By Others, 2019-2030
- 7.3. India Agriculture Insurance Market, By Distribution Channel
- 7.3.1. India Agriculture Insurance Market Size, By Banks, 2019-2030
- 7.3.2. India Agriculture Insurance Market Size, By Insurance Companies, 2019-2030
- 7.3.3. India Agriculture Insurance Market Size, By Others, 2019-2030
- 7.4. India Agriculture Insurance Market, By Region
- 7.4.1. India Agriculture Insurance Market Size, By North, 2019-2030
- 7.4.2. India Agriculture Insurance Market Size, By East, 2019-2030
- 7.4.3. India Agriculture Insurance Market Size, By West, 2019-2030
- 7.4.4. India Agriculture Insurance Market Size, By South, 2019-2030
- 8. India Agriculture Insurance Market Opportunity Assessment
- 8.1. By Types, 2025 to 2030
- 8.2. By Coverage, 2025 to 2030
- 8.3. By Distribution Channel, 2025 to 2030
- 8.4. By Region, 2025 to 2030
- 9. Competitive Landscape
- 9.1. Porter's Five Forces
- 9.2. Company Profile
- 9.2.1. Company 1
- 9.2.1.1. Company Snapshot
- 9.2.1.2. Company Overview
- 9.2.1.3. Financial Highlights
- 9.2.1.4. Geographic Insights
- 9.2.1.5. Business Segment & Performance
- 9.2.1.6. Product Portfolio
- 9.2.1.7. Key Executives
- 9.2.1.8. Strategic Moves & Developments
- 9.2.2. Company 2
- 9.2.3. Company 3
- 9.2.4. Company 4
- 9.2.5. Company 5
- 9.2.6. Company 6
- 9.2.7. Company 7
- 9.2.8. Company 8
- 10. Strategic Recommendations
- 11. Disclaimer
- List of Tables
- Figure 1: India Agriculture Insurance Market Size By Value (2019, 2024 & 2030F) (in USD Million)
- Figure 2: Market Attractiveness Index, By Types
- Figure 3: Market Attractiveness Index, By Coverage
- Figure 4: Market Attractiveness Index, By Distribution Channel
- Figure 5: Market Attractiveness Index, By Region
- Figure 6: Porter's Five Forces of India Agriculture Insurance Market
- List of Figures
- Table 1: Influencing Factors for Agriculture Insurance Market, 2024
- Table 2: India Agriculture Insurance Market Size and Forecast, By Types (2019 to 2030F) (In USD Million)
- Table 3: India Agriculture Insurance Market Size and Forecast, By Coverage (2019 to 2030F) (In USD Million)
- Table 4: India Agriculture Insurance Market Size and Forecast, By Distribution Channel (2019 to 2030F) (In USD Million)
- Table 5: India Agriculture Insurance Market Size and Forecast, By Region (2019 to 2030F) (In USD Million)
- Table 6: India Agriculture Insurance Market Size of Crop Yeild Insurance (2019 to 2030) in USD Million
- Table 7: India Agriculture Insurance Market Size of Crop Revenue Insurance (2019 to 2030) in USD Million
- Table 8: India Agriculture Insurance Market Size of Others (2019 to 2030) in USD Million
- Table 9: India Agriculture Insurance Market Size of Multi-Peril Crop Insurance (MPCI) (2019 to 2030) in USD Million
- Table 10: India Agriculture Insurance Market Size of Crop-Hail Insurance (2019 to 2030) in USD Million
- Table 11: India Agriculture Insurance Market Size of Others (2019 to 2030) in USD Million
- Table 12: India Agriculture Insurance Market Size of Banks (2019 to 2030) in USD Million
- Table 13: India Agriculture Insurance Market Size of Insurance Companies (2019 to 2030) in USD Million
- Table 14: India Agriculture Insurance Market Size of Others (2019 to 2030) in USD Million
- Table 15: India Agriculture Insurance Market Size of North (2019 to 2030) in USD Million
- Table 16: India Agriculture Insurance Market Size of East (2019 to 2030) in USD Million
- Table 17: India Agriculture Insurance Market Size of West (2019 to 2030) in USD Million
- Table 18: India Agriculture Insurance Market Size of South (2019 to 2030) in USD Million
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