Cut back: The industry has recorded only marginal growth, and has faced a number of challenges

Despite growth over the past five years, revenue generated by the Agricultural Insurance industry remains marginally below its pre-recession peak. Over the past five years, insurers have had to cope not only with severe flooding but also with a difficult investment environment. Industry revenue is expected to increase at a compound annual rate of 0.1% over the five years through 2018-19. In 2018-19, IBISWorld expects the economic environment to deteriorate slightly, whilst an unusually long, hot and dry summer is expected to have resulted in an increase in insurance claims. As a result, industry revenue is forecast to decrease by 1.6% to reach just over £1.3 billion...read more.

Industry Statistics & Market Size
Revenue
£1.3bn
Annual Growth 14-19
0.1%
Forecast Growth 19-24
Profit
Employment
4,248
Businesses
220

Industry Threats & Opportunities

  • The range of industry products is small, but some specialist firms have entered the market
  • Increased flooding and storm damage has both encouraged demand and increased payouts
  • Operators are likely to develop the niche of renewable energy insurance products over the coming years
  • Industry Report - Industry Investment Chapter

    Capital intensity in the industry is low, with an estimated £20.28 spent on labour for every £1.00 invested in capital. While industry participants invest heavily in technology to capture and model data both in their back-office functions and the platforms accessible to clients, labour is a larger expense. Due to the complex nature of the agricultural sector, industry employees command a wage higher than the average wage in the UK economy.The industry is also largely dependent on the ability of its sales personnel to establish personal contact with clients. As most farmers require bespoke solutions due primarily to the varying degrees of risk in the agricultural sector, the contribution of labour to the industry is significant...purchase to read more.

    Additional Insights for the Agricultural Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Agricultural Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Well developed internal processes
  • IBISWorld analysts also discuss how external factors such as Damage caused by natural disasters and Demand from dairy cattle raising in the Agricultural Insurance industry impact industry performance..

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    What's in this report

    What is the Agricultural Insurance Industry?

    Firms in this industry provide agricultural insurance, also known as farm or crop insurance. Agricultural insurance is purchased by agricultural producers to protect against either the loss of their crops due to natural disasters, such as hail, drought and floods, or the loss of revenue due to related farm-specific risks.

    Industry Products
  • Farm motor insurance
  • Livestock insurance
  • Farm combined insurance
  • Other liabilities
  • Industry Activities
  • Provision of natural disaster insurance
  • Provision of crop growing insurance
  • Provision of livestock insurance
  • Provision of machinery and equipment insurance
  • Other farm liability insurance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Damage caused by natural disasters
  • Demand from dairy cattle raising
  • Downstream demand from agriculture
  • FTSE 100
  • year bond rate

  • Current Performance
  • Instability and investment income
  • Solvency II
  • Floods, storms and droughts
  • Rural crime
  • Risk assessment
  • Specialised cover
  • Establishments and enterprises
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Cost-saving innovations
  • Product development
  • Skill shortage
  • Industry profitability
  • Table: Agricultural Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Agricultural Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereals, Leguminous Crops & Oilseed Growing
  • Vegetable Growing
  • Dairy Cattle Raising
  • Sheep Farming

  • Key Selling Industries
  • Insurance Agents & Brokers

  • Products & Services
  • Farm combined insurance
  • Livestock insurance
  • Farm motor insurance
  • Other liabilities
  • Chart: Agricultural Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Dairy farmers
  • Livestock farmers
  • Grain farmers
  • Fruit and vegetable farmers
  • Chart: Major Market Segmentation for the Agricultural Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitClaims expensesWagesReinsurance expensesUtilities, depreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Agricultural Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agricultural Insurance Industry

  • Industry Globalization
    National Farmers Union Mutual Insurance Society Ltd,
  • Table: National Farmers Union Mutual Insurance Society Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Agricultural Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Agricultural Insurance Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Combined Ratio
  • A measure of underwriting performance, which equals the sum of the loss and expense ratios. A combined ratio above 100% indicates an underwriting loss.
  • Underinsurance
  • Refers to the state in which consumers are not adequately protected by insurance policies against risks.
  • Underwrite
  • The process that an insurer, investment house uses to assess the eligibility of a customer to receive their products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Agricultural Insurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Agricultural Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Agricultural Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Agricultural Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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