Industry Analysis & Industry Trends
Despite steep losses incurred in 2012, sharp increases in crop insurance protection in force and strong premium gains in 2011 have driven the performance of the Agricultural Insurance industry in the past five years. Moreover, regulatory changes are anticipated to dictate the industry's performance over the five years to 2019. The 2014 Farm Bill continues to solidify crop insurance as the most important means for farmers to hedge production and price risk. Ultimately, industry revenue is forecast to rise, with consistent increases in the agricultural price index driving up revenue from 2016 onward.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Agricultural Insurance industry is entering the mature stage of its economic life cycle. This stage is characterized by the wholehearted market acceptance of industry offerings and slowing company growth rates. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 1.4% during the 10 years to 2019. In contrast, US GDP is projected to grow at an annualized rate of 2.5% during the same period. Typically, an industry is considered to be in the mature phase of its life cycle when growth in IVA trends with GDP growth over a 10-year period.
Crop insurance is frequently described as the most important risk management tool for the agricultural sector... purchase to read more