Livestock Insurance Market Likely To Touch At .24 Billion By 2025: Grand View Research Inc.

Posted by Mrudula Anil Karmarkar on July 12th, 2023

San Francisco, 12 July 2023: The ReportLivestock Insurance Market Size, Share & Trends Analysis Report By Coverage (Mortality, Revenue), By Animal Type, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

The global livestock insurance market size is expected to reach USD 7.24 billion by 2030, registering a CAGR of 7.9% over the forecast period, according to a new report by Grand View Research, Inc. The market is driven by increasing uptake of livestock insurance, supportive initiatives by the public and private sectors, demand for animal protein, and technological advancements. According to FAO-OECD estimates, for example, cow milk accounted for about 80% of the global milk production during 2020-29. In terms of country, India and Pakistan, are estimated to contribute to more than 30% of global milk production by 2029. This is expected to drive the adoption of livestock insurance to mitigate production risks.

The COVID-19 pandemic exposed vulnerabilities in global supply chains, including those related to livestock products. Disruptions in transportation, processing, and distribution have affected the livestock industry, leading to challenges in moving and selling livestock products. Livestock insurance can cover losses caused by supply chain disruptions, such as delays, spoilage, or damage during transportation thus propelling its demand and adoption. The pandemic also highlighted the need to reassess and adapt risk management strategies in the livestock industry. Insurers and farmers have become more cognizant of emerging risks, including the potential for zoonotic disease transmission and the importance of biosecurity measures. Such factos are expected to drive the market going forward.

Advances in technology, such as satellite imagery, remote sensing, and data analytics, have improved risk assessment and underwriting processes in the livestock insurance sector. These technologies enable insurers to better evaluate risks, provide accurate pricing, and enhance overall efficiency in managing livestock insurance policies. The pandemic has accelerated the adoption of digital technologies and remote services in the insurance industry. Insurers have increasingly leveraged online platforms and digital tools for underwriting, claims processing, and customer interactions. This digital transformation has enhanced the efficiency and accessibility of livestock insurance services, enabling farmers to obtain coverage and manage their policies remotely thus contributing to the market growth.

The COVID-19 pandemic has brought attention to the importance of risk management and the need for insurance coverage in the livestock industry. Livestock farmers have become more aware of the potential financial risks associated with disease outbreaks, supply chain disruptions, and market volatility. Lockdowns, restrictions on gatherings, and reduced consumer demand affected livestock prices and market dynamics. Livestock insurance helps farmers manage price risk and market volatility by providing coverage for fluctuations in beef and milk prices, ensuring a level of income stability. This increased awareness has led to a higher demand for livestock insurance as farmers seek to protect their livelihoods.

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Livestock Insurance Market Report Highlights

• By coverage, the mortality segment dominated the market in 2022 with a share of over 40%. The others segment on the other hand, is projected to grow at the fastest CAGR of over 9% in the near future
• As the global population continues to grow, there is a rising demand for livestock products such as meat, dairy, and eggs. This increased demand creates a need to protect livestock from various risks, including disease outbreaks, natural disasters, and accidents, leading to an increased demand for livestock insurance
• In terms of animal type, the bovine segment held the largest market share in 2022 while the other animals segment is estimated to grow at the highest rate of over 9% in the coming years
• Rising income levels and urbanization lead to changing dietary preferences, with an increased demand for animal-based products. This trend is expected to drive the expansion of livestock production, creating a larger market for livestock insurance
• By distribution channel, the direct segment accounted for the largest market share of over 30% in 2022. The others segments is expected to expand at the fastest CAGR of about 8% during the forecast period
• By region, Asia Pacific dominated the market with a share of about 40% in 2022. Latin America is projected to grow at the fastest rate of over 9% from 2023 to 2030
• In some regions, smaller regional or local insurance companies cater to the specific needs of local livestock farmers. These insurers have a better understanding of the local agricultural practices, climate conditions, and livestock disease risks. They may also provide more personalized services and build stronger relationships with their customers thus attributing to the regional growth

Livestock Insurance Market Report Scope

List of Key Players in the Livestock Insurance Market

• Nationwide Mutual Insurance Company
• AXA SA
• FBL Financial Group, Inc.
• HDFC ERGO General Insurance Company Limited
• ICICI Lombard General Insurance Company Limited
• ProAg (Tokio Marine HCC group of companies)
• The Hartford
• Reliance General Insurance Company Limited (part of Reliance Capital)
• Sunderland Marine (NorthStandard Limited)
• Royal Sundaram General Insurance Co.Limited

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