The global livestock insurance market size reached US$ 3.32 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 5.27 Billion by 2028, exhibiting a growth rate (CAGR) of 7.7% during 2023-2028. The increasing prevalence of various disease outbreaks, rising consumer preferences towards animal-based products, and the growing awareness about the health and well being of animals are some of the major factors propelling the market growth.
|Livestock Insurance Market Size in 2022
||US$ 3.32 Billion
|Livestock Insurance Market Forecast in 2028
||US$ 5.27 Billion
|Livestock Insurance Market Growth Rate (2023-2028)
Livestock insurance is a type of insurance coverage specifically designed to protect livestock owners against financial losses resulting from the death, theft, or accidental injury of their animals. It covers various types of animals, including cattle, sheep, goats, pigs, horses, and poultry. It provides financial compensation to the insurance holder for mitigating the losses incurred in unexpected events that affect the health or well-being of their livestock. It is offered by specialized agricultural and traditional insurance companies that provide coverage for farm and ranch operations.
The surging prevalence of disease outbreaks, such as foot and mouth disorders or avian influenza, is driving the demand for livestock insurance around the world. It helps farmers recover losses and manage the expenses associated with disease control and prevention. Moreover, initiatives undertaken by governing authorities to promote agricultural risk management and offer subsidies or incentives for livestock insurance are favoring the growth of the market. In addition, rising consumer preferences for sustainably sourced meat and animal based products, such as milk and eggs, on account of numerous health benefits associated, is contributing to the market growth. Besides this, the growing awareness about the health and well being of animals and the safety of the food produced is creating a positive outlook for the market.
Livestock Insurance Market Trends/Drivers:
Increasing value of livestock is positively influencing the sales of livestock insurance
The increasing value of livestock on account of the growing global population, changing dietary preferences, and rising demand for animal products represent one of the primary factors driving the demand for livestock insurance around the world. With higher investments in livestock, financial risks associated with potential losses have become more significant. Consequently, there is a rise in the sales of livestock insurance for ensuring that these valuable assets are protected and their mortality, theft, or other perils are covered.
Rising climate changes worldwide stimulating the market growth
Climate change and its impact on weather patterns have increased the frequency and severity of extreme weather events, which pose significant risks to livestock farmers. Droughts, floods, storms, and other weather-related disasters can cause substantial losses in the form of livestock mortality, reduced productivity, and damaged infrastructure. Livestock insurance helps mitigate these risks by providing financial support to farmers for the loss of livestock due to weather-related perils. Farmers can better cope with the unpredictable and adverse effects of climate change by transferring the risk of climate-related losses to insurance providers, which enable them to recover and rebuild their livestock operations more effectively. The increasing concern about climate change is catalyzing the demand for livestock insurance as a risk management tool in the agricultural sector.
Associated benefits catalyzing demand for livestock insurance
Livestock insurance meets the need for financial protection in the agricultural sector. Farmers and livestock owners face various risks, such as disease outbreaks, natural disasters, theft, or accidental death of animals, that can result in significant financial losses. Livestock insurance provides a safety net, allowing farmers to recover their investment and continue their operations without facing devastating financial setbacks. The demand for livestock insurance arises from the desire to mitigate these risks and safeguard the financial stability of livestock businesses.
Livestock Insurance Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global livestock insurance market report, along with forecasts at the global, regional and country levels from 2023-2028. Our report has categorized the market based on coverage, animal type, and distribution channel.
Breakup by Coverage:
Mortality represents the most popular coverage of livestock insurance
The report has provided a detailed breakup and analysis of the livestock insurance market based on the product type. This includes mortality, revenue, and others. According to the report, mortality represented the largest segment. Mortality is livestock insurance coverage that offers compensation to the policyholder in the event of the death of an insured animal due to covered perils, including accidents, illness, disease, natural disasters, and theft. It helps owners protect their investments and financial stability, particularly for high-value animals. The coverage amount depends on the value of the animal at the time of death, as specified in the insurance policy.
Revenue is another type of livestock insurance coverage that focuses on safeguarding the income stream of the policyholder. It provides compensation in the event of a loss in revenue or market value due to specific risks outlined in the policy. These risks involve market price fluctuations, changes in demand, disease outbreaks, or production-related issues.
Breakup by Animal Type:
- Sheep and Goats
Bovine dominates the overall market
The report has provided a detailed breakup and analysis of the livestock insurance market based on the animal type. This includes bovine, swine, sheep and goats, and others. According to the report, bovine represented the largest segment. Livestock insurance is highly beneficial for bovine farmers as it provides financial protection against the loss of cattle due to covered risks like accidents, illness, theft, or natural disasters. It assists farmers in recovering their investments and maintaining their financial stability. It offers coverage for losses due to disease outbreaks, which supports farmers in managing the associated costs of treatment, quarantine, and reduced productivity.
Farmers that have swine animal require livestock insurance as it provides coverage for disease-related losses, which enables farmers to manage the financial impact of disease outbreaks and maintain the health of their herds. It can offer price protection, which compensates farmers for losses in market value and ensures a more stable revenue stream.
Whereas livestock insurance for sheep and goats can offer coverage against predation and theft losses, which provides financial support for farmers in mitigating these risks. It can help protect the revenue of farmers by offering coverage against market price volatility, providing stability in income even during periods of market uncertainty.
Breakup by Distribution Channel:
Livestock insurance is widely sold through direct channels
The report has provided a detailed breakup and analysis of the livestock insurance market based on the distribution channel. This includes direct, agency/broker, and bancassurance. According to the report, direct represented the largest segment. At present, there is an increase in the sales of livestock insurance policies by direct distribution without involving intermediaries. The insurance company interacts directly with the farmers or livestock owners via numerous communication channels, including online platforms, call centers, or in-person interactions. The company markets and sells its insurance products, handles policy inquiries, collects premiums, and manages claims directly. This distribution channel enables a direct relationship between the insurer and the policyholder, which offers convenience and control for parties.
Agencies/brokers are licensed professionals who understand the livestock insurance market and its products. They work closely with farmers and livestock owners to assess their insurance needs, provide guidance on suitable coverage options, facilitate the application process, collect premiums, and assist with claims handling. They offer personalized assistance, expert advice, and a broader choice of insurance options to the policyholders.
Breakup by Region:
- North America
- United Kingdom
- Asia Pacific
- South Korea
- Latin America
- Middle East and Africa
North America exhibits a clear dominance, accounting for the largest livestock insurance market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represented the largest segment. North America held the biggest market share due to increasing farm sizes and commercialization in the agricultural sector and large cattle industry. Insurance providers offer different types of cattle insurance policies, such as mortality insurance, accident and sickness insurance, and pasture, range, and forage insurance. Moreover, key players in the region are incorporating precision agriculture technologies, such as satellite imaging, drones, and artificial intelligence, to improve risk assessment, increase efficiency, and reduce costs.
Asia Pacific is estimated to expand further in this domain during the forecast period. Owing to the region’s growing population, rapid urbanization, and increasing demand for animal products. In addition, as Asia Pacific is prone to various natural disasters, including typhoons, floods, earthquakes, and droughts, livestock farmers usually face risks to their animals, infrastructure, and feed availability. As a result, livestock insurance provides a critical safety net for farmers, which allows them to recover from losses due to natural disasters, adapt to climate change, and maintain the continuity of their livestock operations.
The top companies in the global livestock insurance market are integrating advanced technologies, such as telematics, the internet of things (IoT), predictive analytics, and machine learning (ML) in livestock insurance services. These advancements help collect real time data from livestock and their environments and allow insurers to monitor animal behavior, and health parameters. This data also assists in early disease detection, livestock management, and risk mitigation and allow insurers to make data driven decisions, improve risk assessment accuracy, and offer customized coverage options to farmers based on their specific circumstances. Moreover, there is an increase in the incorporation of blockchain technology in livestock insurance services that allows for the secure storage and sharing of policy information, claims data, and transaction records and streamline the claims process, reduce fraud, and facilitate faster settlements.
The report has provided a comprehensive analysis of the competitive landscape in the global livestock insurance market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- AXA XL
- FBL Financial Group, Inc
- Future Generali India Insurance Company Ltd.
- HDFC ERGO General Insurance Company
- Howden Insurance & Reinsurance Brokers (Phil.), Inc.
- HUB International Limited (Hellman & Friedman LLC)
- ICICI Lombard General Insurance Company Limited
- Liberty Mutual Insurance Company (Liberty Mutual Group Inc.)
- Nationwide Mutual Insurance Company
- The Hartford
- In September 2022, ICICI Lombard General Insurance Company Limited announced a collaboration with Skit.ai to introduce a digital voice agent to track claims.
- Nationwide Mutual Insurance Company partnered with Ohio Farm Bureau to sponsor the 2020 Ohio Youth Livestock Expo.
- In September 2022, HDFC ERGO General Insurance Company digitized buying of the insurance policies and launched numerous insurance online platforms.
Livestock Insurance Market Report Scope:
|Base Year of the Analysis
| Historical Period
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- Animal Type
- Distribution Channel
||Mortality, Revenue, Others
|Animal Types Covered
||Bovine, Swine, Sheep and Goats, Others
|Distribution Channels Covered
||Direct, Agency/Broker, Bancassurance
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||AXA XL, FBL Financial Group, Inc, Future Generali India Insurance Company Ltd., HDFC ERGO General Insurance Company, Howden Insurance & Reinsurance Brokers (Phil.), Inc., HUB International Limited (Hellman & Friedman LLC), ICICI Lombard General Insurance Company Limited, Liberty Mutual Insurance Company (Liberty Mutual Group Inc.), Lloyd's, Nationwide Mutual Insurance Company, The Hartford, etc.
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Key Questions Answered in This Report:
- How has the global livestock insurance market performed so far, and how will it perform in the coming years?
- What are the drivers, restraints, and opportunities in the global livestock insurance market?
- What is the impact of each driver, restraint, and opportunity on the global livestock insurance market?
- What are the key regional markets?
- Which countries represent the most attractive livestock insurance market?
- What is the breakup of the market based on the coverage?
- Which is the most attractive coverage in the livestock insurance market?
- What is the breakup of the market based on the animal type?
- Which is the most attractive animal type in the livestock insurance market?
- What is the breakup of the market based on the distribution channel?
- Which is the most attractive distribution channel in the livestock insurance market?
- What is the competitive structure of the global livestock insurance market?
- Who are the key players/companies in the global livestock insurance market?
Key Benefits for Stakeholders
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the livestock insurance market from 2017-2028.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global livestock insurance market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the livestock insurance industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.