Livestock Insurance Market Size, Share & Trends Analysis Report By Coverage (Mortality, Revenue), By Animal Type, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

Livestock Insurance Market Size & Trends

The global livestock insurance market size was valued at USD 3.95 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2023 to 2030. Key factors contributing to this growth include increasing demand for meat, milk, and dairy products, need for risk management, supportive government initiatives, and prevalence of diseases, among others. In January 2022, FAARMS an agri-tech start-up partnered with Reliance General Insurance Companyto provide cattle insurance to livestock farmers in India via its mobile application.

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.

The increasing need for minimizing production risks is a key market driver. Livestock farming is inherently exposed to various risks, such as diseases, adverse weather conditions, theft, and accidents. Farmers and livestock owners are becoming increasingly aware of the potential financial losses associated with these risks. As a result, there is a growing recognition of the importance of risk management and the need for insurance coverage. In addition, climate change has led to an increase in extreme weather events, such as droughts, floods, and storms, which can have a significant impact on livestock farming. These events pose risks to livestock health, infrastructure, and feed availability. Livestock insurance helps farmers mitigate financial losses resulting from such events, making it an essential risk management tool in the face of climate change.

Supportive government initiative is another major factor fueling the market growth. Governments in many countries recognize the significance of livestock farming for the economy and food security. To support the industry, governments often implement policies and regulations that encourage or require livestock insurance coverage. In May 2022, the USDA updated its 3 key livestock insurance options-the Livestock Gross Margin (LGM), Dairy Revenue Protection (DRP), and Livestock Risk Protection (LRP). The options were revised to offer greater flexibility for protecting swine, dairy, and cattle operations, reach more producers, and better meet the needs of the livestock producers. Such supportive initiatives contribute to the growth of the livestock insurance industry.

Coverage Insights

By coverage, the mortality segment accounted for the largest revenue share of over 40% of the market in 2022. Large number and type of insurance companies offering mortality insurance for livestock is expected to fuel the segment growth in the coming years.Established insurance companies, for instance,leverage their experience, financial strength, and underwriting expertise to attract and retain customers. While the agricultural insurance providers, including crop insurers, offer livestock insurance as part of their product portfolio. These insurers leverage their existing infrastructure, distribution channels, and expertise in agricultural risk management to enter the market.

The others segment is projected to grow at the fastest rate of over 9% during the forecast period. The others segment comprises coverage for infertility, disability, transportation, liability, theft etc. Livestock farming plays a vital role in international trade, with countries exporting livestock and livestock products worldwide. Insuring livestock during transportation and ensuring biosecurity measures are in place becomes crucial in this context. The livestock insurance industry benefits from the need to safeguard these trade operations and protect against potential financial losses.

Animal Type Insights

By animal type, the bovine segment comprising cattle and buffaloes held the largest share of about 35% of the market in 2022. This is owing to growing awareness and uptake of bovine insurance policies to minimize production risks. Bovine insurance provides coverage for livestock losses caused by adverse weather conditions, including death, injury, or production loss due to feed scarcity or infrastructure damage. It also offers protection against market volatility and price risk, ensuring a level of income stability for beef and dairy producers. Bovine insurance plays a crucial role in mitigating financial losses caused by disease outbreaks by covering livestock mortality, treatment expenses, and biosecurity measures. These benefits are expected to contribute to the segment growth.

Other animals segments is anticipated to expand at the highest CAGR of about 9% during 2023 to 2030. The segment includes insurance for aquaculture, deer, alpacas, llamas, camels etc. The increasing types of animal species covered by insurance companies combined rising penetration of insurance in these livestock sectors are expected to propel the segment growth in the near future.AXA SA for instance, offers insurance policies for deer, alpacas, zoo animals, llamas among others.Reliance General Insurance Company Limited on other hand, provides livestock insurance for camel, donkey, and yak among others.

Distribution Channel Insights

The direct sales segment attributed to over 30% share of the market by distribution channel in 2022. This is owing to companies adopting omnichannel marketing strategies such as direct company sales agents, online renewals, among others.ICICI Lombard General Insurance Company Limited for instance, allows its customers to purchase and renew policies online. Other channels of distribution such as dairy co-operatives and microfinance institutions are expected to grow at the fastest rate of more than 8% over the coming years.

Key factors driving the growth include ground-level connectivity of these institutions and growing awareness among livestock producers regarding insurance policies for livestock animals. In April 2023, the Kerala Cooperative Milk Marketing Federation (Milma) in India partnered with the Agricultural Insurance Company of India Ltd (AIC) to launch bovine insurance scheme to offset loss of income owing to a fall in milk yield during summers.Farmers would be eligible to register for the scheme through dairy cooperative societiesunder the Malabar Regional Cooperative Milk Producers Union.

Regional Insights

Asia Pacific dominated the market with revenue share of over 40% in 2022. This is owing to the presence of a sizeable livestock population, increasing disposable income, and the growing awareness among livestock farmers to mitigate production risks by adopting livestock insurance. As per FAO and internal GVR estimates, China accounts for about half of the global pig population. In 2022, the country’s pig population was estimated to be 410 million. The Latin American region, on the other hand, is projected to grow at the fastest rate of about 9%.

Insurance companies are introducing innovative products tailored to the specific needs of livestock farmers. These products may include coverage for livestock mortality, disease outbreaks, production loss, and even parametric insurance solutions based on weather indices. The development of specialized livestock insurance products enhances the market's attractiveness and addresses the unique risks faced by farmers. Furthermore, government-sponsored or subsidized insurance programs for livestock in some countries such as India is expected to contribute to regional growth in the coming years.

Key Companies & Market Share Insights

The market is competitive in nature. The level of competition varies across regions and countries based on factors such as agricultural practices, market maturity, and regulatory frameworks.Market players are involved in deploying various strategic initiatives to boost their market share. These include mergers and acquisitions, continuous improvement of customer service and the development of comprehensive coverage options catering to the specific needs of livestock farmers among others. For instance, in February 2023, the Standard Club and the North of England Protecting and Indemnity Association Limited (North) merged into a new single legal group called NorthStandard. NorthStandard is a key market player in the aquaculture insurance market and offers insurance policies and risk management services to the aquaculture sector. Some of the prominent players in the global livestock insurance market include:

• 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

Livestock Insurance Market Report Scope

Global Livestock Insurance Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global livestock insurance market report on the basis of coverage, animal type, distribution channel, and region:

• Coverage Outlook (Revenue, USD Million, 2018 - 2030)

  • Mortality

  • Revenue

  • Other Coverage

• Animal Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Bovine

  • Swine

  • Sheep & Goats

  • Poultry

  • Other Animals

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Direct

  • Agency/Broker

  • Bancassurance

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Poland

    • Rest of Europe

  • Asia Pacific

    • Japan

    • India

    • China

    • South Korea

    • Australia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East and Africa (MEA)

    • South Africa

    • Rest of MEA