Global Livestock Insurance Market Size By Product (Non-Commercial Mortality Insurance, Commercial Mortality Insurance), By Application (Dairy, Cattle), By Distribution Channel (Direct Sales, Bancassurance), By End-User (Commercial, Individuals), By Geographic Scope And Forecast

Livestock Insurance Market Size And Forecast

Livestock Insurance Market size was valued at USD 3.25 Billion in 2024 and is projected to reach USD 6.02 Billion by 2031, growing at a CAGR of 8% from 2024 to 2031.

• Livestock insurance is a type of insurance that protects farmers and ranchers against losses caused by the death, theft, or disease of cattle. This sort of insurance often covers a wide range of animals, including cattle, sheep, goats, pigs, and poultry. The plans can vary greatly, providing coverage for a wide range of risks such as accidents, natural catastrophes, and market changes. Farmers need livestock insurance to protect their assets and provide financial stability, particularly in the face of unforeseen calamities that might severely affect their operations and livelihood.
• Livestock insurance is looking bright, thanks to technological developments, data analytics, and increasing farmer risk management awareness. The use of digital tools, such as remote sensing and telematics, can improve risk assessment and premium calculation, resulting in more personalized insurance solutions.
• With rising global demand for livestock products and the impact of climate change on agriculture, there is a greater need for effective risk management solutions. As the agricultural sector evolves, livestock insurance is expected to enhance its coverage options and accessibility, particularly in emerging countries, thereby ensuring the livestock industry’s sustainability and resilience.

To Get Detailed Analysis: Download Report PDF

Global Livestock Insurance Market Dynamics

The key market dynamics that are shaping the global livestock insurance market include:

Key Market Drivers:

• Increasing Frequency of Extreme Weather Events and Natural Disasters: The increasing frequency of extreme weather events and natural calamities has a substantial impact on livestock farmers, driving up demand for livestock insurance. According to the Food and Agriculture Organization (FAO) of the United Nations, between 2008 and 2018, agriculture accounted for around 20% of disaster-related economic losses in developing countries, with livestock accounting for 36%. This disturbing trend is mostly driven by livestock’s vulnerability to climate-related threats such as droughts, floods, and diseases, which are compounded by shifting weather patterns.
• Growing Livestock Population and Intensification of Farming Practices: The expanding livestock population and intensification of farming practices are driving demand for livestock insurance, as global demand for animal products rises. According to the World Bank, globally meat production is expected to rise by 13% between 2020 and 2029, reaching 366 million tons in 2029. This increase in livestock numbers not only expands operations, but also increases financial risks connected with disease outbreaks, market swings, and production issues.
• Rising Awareness and Government Support for Agricultural Insurance: Rising awareness and government support for agricultural insurance, including livestock insurance, are helping farmers protect their livelihoods. For instance, in India, the government’s Livestock Insurance Scheme experienced significant growth, with the number of insured animals jumping from 5.6 million in 2019-20 to 7.9 million in 2020-21—a 41% increase in just one year, according to the Department of Animal Husbandry and Dairying.

Key Challenges:

• Lack of Awareness Among Farmers: Many livestock Farmers, particularly in developing countries, are ignorant of the advantages of livestock insurance. Limited access to information and a lack of outreach initiatives impede the acceptance of insurance coverage. This issue is exacerbated by inadequate education and communication channels between insurance companies and farmers, making it difficult for them to appreciate the financial protection available through insurance. Without sufficient awareness, farmers frequently suffer terrible devastating losses as a result of diseases, accidents, or extreme weather events.
• Fraudulent Claims and Moral Hazard: The livestock insurance market has problems with fraudulent claims, in which farmers overestimate losses or submit bogus claims. This moral hazard problem raises the risk for insurance companies, resulting in increased rates and stricter claim verification procedures. This obstacle is created by the difficulties of effectively estimating losses in remote places, as well as the lack of transparent monitoring methods, which facilitates fraud and creates market inefficiencies.
• Climate Change and Unpredictable Risks: As extreme weather conditions become more unpredictable as a result of climate change, livestock insurance faces an increasingly difficult problem. Droughts, floods, and diseases induced by shifting weather patterns increase the hazards for cattle ranchers. This dilemma stems from the difficulty of precisely estimating these risks, which results in higher premiums or insurers’ reluctance to cover specific regions or species of cattle. As climate-related hazards increase, insurers struggle to strike a balance between risk management and cost-effective coverage.

Key Trends:

• Adoption of Digital Tools and Technology: The use of digital tools, such as mobile apps, remote sensing, and GPS monitoring, is altering livestock insurance by making claims processing easier and collecting more data. These technologies allow insurers to more properly analyze risks and deliver better services to farmers. This trend is being pushed by the increasing availability of low-cost digital solutions and the demand for more efficient, transparent insurance management, particularly in remote or underserved areas.
• Data Analytics Integration for Risk Assessment: The livestock insurance market is increasingly relying on advanced data analytics to identify risks such as disease outbreaks, weather occurrences, and market swings. Insurance companies may provide more accurate and personalized plans by integrating big data and machine learning. This development is driven by the need for more exact actuarial models and a better knowledge of the complex risks connected with livestock production, which will result in optimum premium pricing.
• Government Subsidies and Incentive Programs: Many governments are adopting subsidies and incentive programs to promote livestock insurance and safeguard farmers from financial losses. These programs make insurance more affordable and accessible, especially in poor countries. This trend is being pushed by an awareness of the economic importance of livestock farming and the need to protect food security while also mitigating the impact of environmental risks on agriculture.

What's inside a VMR
industry report?

Our reports include actionable data and forward-looking analysis that help you craft pitches, create business plans, build presentations and write proposals.

>>> Ask For Discount @ – https://www.verifiedmarketresearch.com/ask-for-discount/?rid=237716

Global Livestock Insurance Market Regional Analysis

Here is a more detailed regional analysis of the global livestock insurance market:

North America:

• North America continues to dominate the livestock insurance market, owing to a robust agricultural sector, well-established insurance infrastructure, and high farmer risk management awareness. The livestock and poultry inventory in the US will reach USD 196.8 Billion in 2022, highlighting the financial stakes involved. With an estimated 89.3 million cattle and calves, according to the USDA, there is a high demand for insurance to protect against diseases, extreme weather, and market volatility. Strong government support, particularly the USDA’s Risk Management Agency, which covered USD 7.71 Billion in liabilities in 2022, fuels market expansion.
• Climate change is a major contributor to increased demand for livestock insurance. With 18 weather disasters expected in the United States in 2022, several of which may damage agricultural areas, more farmers are looking for comprehensive coverage. From 2023 to 2028, the market is predicted to grow at a 6.8% CAGR, driven by increased awareness, expanded insurance products such as the USDA’s Pasture, Rangeland, and Forage Program, and technological breakthroughs in risk assessment. These reasons ensure the continuous growth of the North American livestock insurance market.

Asia Pacific:

• The Asia-Pacific livestock insurance market is expanding rapidly as a result of population changes, economic expansion, and an increased emphasis on risk management in agriculture. The region accounts for roughly 40% of global animal production, and meat consumption is predicted to increase by 19% between 2021 and 2030, according to the FAO. This increase in production, particularly in key markets such as China and India, emphasizes the need for insurance to protect farmers’ investments. Government measures, such as China’s predicted 10-15% annual growth in agriculture insurance premiums and India’s 41% increase in insured livestock under the National Livestock Mission, are fueling demand.
• The region’s vulnerability to climate-related calamities is an important factor. With Asia-Pacific accounting for 57% of global disaster occurrences and 87% of disaster-related fatalities between 1970 and 2020, more farmers are looking for livestock insurance to reduce risks. Technological improvements, such as satellite imagery and blockchain in insurance procedures, are also driving growth, with the Asian Development Bank forecasting a 9.5% CAGR for agricultural insurance between 2022 and 2027. As urbanization boosts meat demand and governments provide further support, Asia-Pacific’s livestock insurance market is positioned for further expansion.

Global Livestock Insurance Market: Segmentation Analysis

The Global Livestock Insurance Market is Segmented on the basis of Product, Application, Distribution Channel, End-User, And Geography.

Livestock Insurance Market, By Product

• Non-Commercial Mortality Insurance
• Commercial Mortality Insurance

Based on Product, the market is bifurcated into Non-Commercial Mortality Insurance and Commercial Mortality Insurance. Commercial mortality insurance is the dominant segment as to the considerable financial inputs required for large-scale livestock operations. Commercial farmers who manage larger livestock populations face greater risks from disease outbreaks and natural calamities, making comprehensive coverage critical to protecting their assets. Non-Commercial Mortality Insurance is the fastest-growing segment, driven by increased awareness among small-scale and individual farmers about the importance of protecting their livestock from mortality risks, particularly as agricultural practices evolve and more regions face climate-related challenges.

Livestock Insurance Market, By Application

• Dairy
• Cattle
• Swine

Based on Application, the market is segmented into Dairy, Cattle, and Swine. Cattle farming, notably for beef and dairy production, accounts for a substantial amount of the global livestock market, making it the most dominant category. Cattle have a high economic value, so insurance is essential for managing risks such as disease outbreaks and market instability. The Swine section is the fastest-growing, driven by rising pork demand, notably in Asia-Pacific. Rising disease risks, such as African swine fever, have accelerated the use of insurance in this area.

Livestock Insurance Market, By Distribution Channel

• Direct Sales
• Bancassurance
• Agents and Brokers

Based on Distribution Channel, the market is segmented into Direct Sales, Bancassurance, and Agents and Brokers. The agents and brokers segment is dominant, as individualized counsel and specialized insurance solutions are essential for farmers, making intermediaries such as agents and brokers the preferred option. They give experience, foster confidence, and make the insurance process easier for farmers. Bancassurance is the fastest-growing segment, thanks to increased collaboration between banks and insurance providers, which allows farmers better access to insurance through established banking relationships, particularly in emerging nations where financial inclusion is expanding.

Livestock Insurance Market, By End-User

• Commercial
• Individuals

Based on End-User, the market is segmented into Commercial and Individuals. The commercial category dominates as large-scale livestock enterprises, such as commercial farms, have higher financial risks due to larger cattle numbers and increased sensitivity to disease outbreaks and market volatility. These farms need livestock insurance coverage to protect their investments. Individuals is the fastest-growing group, owing to increased knowledge among small-scale farmers and individuals about the value of livestock insurance in risk mitigation, particularly when climate change and other uncertainties affect farming operations.

Livestock Insurance Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Geography, the Global Livestock Insurance Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. North America is the dominant region, owing to its mature insurance market, high risk management knowledge, and substantial government support. The Asia-Pacific area is the fastest growing, driven by rapid agricultural expansion, rising livestock populations, rising climate-related hazards, and expanding government-backed insurance plans, particularly in China and India.

Key Players

The “Global Livestock Insurance Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Zurich, Chubb, Qbe, Picc, China United Property Insurance, American Financial Group, Prudential, Xl Catlin, Everest Re Group, Endurance Specialty, Cuna Mutual, Tokio Marine, and Archer Da amongst. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Livestock Insurance Market Recent Developments

• In November 2023, AXA completed the acquisition of Laya Healthcare Limited for USD 684 million, as previously stated by the firm.
• In July 2023, AXA completed the acquisition of GacM Spain for USD 326 million, according to a statement released by AXA at the time of the transaction.

Report Scope

Research Methodology of Verified Market Research:

To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our Sales Team at Verified Market Research.

Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
• Provides insight into the market through Value Chain
• Market dynamics scenario, along with growth opportunities of the market in the years to come
• 6-month post-sales analyst support

Customization of the Report

• In case of any Queries or Customization Requirements please connect with our sales team, who will ensure that your requirements are met.