Based on in-depth interviews with agricultural insurers, brokers, associations and public institutions operating in these markets, this survey provides
a unique view on the trends and drivers for agricultural insurance in these three countries. This survey was conducted and written by Dr. Schanz, Alms & Company, an independent (re)insurance consultancy based in Zurich, Switzerland.
As one of the leading global (re)insurers, AXA XL is committed to develop the markets and lines of business in which it operates and to facilitate an informed dialogue among market participants. This report compares the agricultural insurance markets of Brazil, China and India, three of the world’s top five agricultural producers. Collectively, these three countries are the main drivers of the rapid expansion of the agricultural insurance market, which has recorded gross written premiums of more than US $30 billion in the last decade. For the sake of comparability, the report focuses on crop insurance only, although
in some interviews reference was also made to other classes such as aquaculture or livestock insurance.
In each of the three markets agricultural insurance is highly dependent upon public subsidies, although regarding the role of the governments and its involvements, there are significant differences between Brazil, China and India. Nevertheless, in all three cases agricultural insurance serves a multi-faceted approach to stabilise farmers’ income, enhance the productivity of the agricultural sector and improve access to financing.
In combination these factors help to strengthen food security not only in rural areas but also for society at large. While Brazil has been a food exporter since its colonial days, China and India still consume most agricultural products. However, in each of these markets the agricultural sector plays a key role for economic growth and the transition to a modern, high performing economy.
We are proud to be part of this process and aspire to provide further inspiration and ideas for agricultural insurance with this research. In addition, we would like to thank our clients and other business partners who participated in this research for sharing their time and expertise with us.
See more: Agri Survey 2018_AXL