“A new forecast for the development of global agricultural insurance, published in March, indicates an approximately 70 percent growth in this market by 2030. The Russian market has the development potential that can exceed this level,” said Korney Bizhdov, President of the National Union of Agricultural Insurers.
By 2030, the global agricultural insurance market will reach $59,9 billion, up 69% compared to 2021, according to Next Move Strategy Consulting, which released an industry report on agricultural insurance in March.
As of 2021, the agency estimated the volume of the planet’s global agricultural insurance market at $36,6 billion, and analysts estimated the average annual growth rate (CAGR) at 5,2%. The dominant share in global agricultural insurance will remain with the markets of North America and Southeast Asia.
The main growth factor will be the further introduction of modern digital technologies into agricultural production - space monitoring, unmanned vehicles, digital platforms, which will affect the ability to assess the current state of plants and weather conditions and forecast them, store and process data on fields and yields.
“In Russia, the main task of developing the market for the coming years is related to expanding the coverage of insurance coverage for crop production. The development of digital technologies is already one of the growth factors, as they make insurance more accessible to farmers and insurance companies. The NSA has already provided centralized access for insurance companies-members of the NSA to space monitoring tools that allow for remote assessment of the condition of crops, a mobile application has been developed for the insured farmer, and new projects are being prepared,” said Korney Bizhdov.
“The forecast, in principle, corresponds to the estimates of other analysts,” the President of the NSA explained. “So, in mid-2022, the Swiss Re Institute estimated the volume of the global agricultural insurance market at $46 billion and predicted its growth to $2030 billion by 80, with an increase of 74%.”
According to the NSA and the Bank of Russia, in 2022 the agricultural insurance market of the Russian Federation reached 11,3 billion rubles, showing an increase of 23% compared to the previous period (9,2 billion rubles).