Crop insurance for cannabis is highly recommended to avoid significant financial loss if your crops are destroyed. Without a reliable insurance policy, the loss of crops is devastating for businesses in the cannabis industry (especially cannabis growers). Moreover, cannabis crops are extremely valuable and take months to grow and harvest properly. It could be disastrous for the business if something happened to part or all of the cannabis crops. Cannabis crop insurance shields from financial consequences of a crop failure. Cannabis crop coverage will indemnify for adverse events that apply to a loss of crop growing indoors only. Therefore, the surge in demand for cannabis crop insurance is expected to boost the growth of the market in the upcoming years.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
An increase in value-added services provided by the insurance firms to their customers and the rise in stringent government regulations across the economies are driving the growth of the market. In addition, the expansion of the cannabis crop insurance product line is expected to fuel the growth of the economy. However, a lack of awareness of cannabis crop insurance across many emerging economies might limit the market growth. On the contrary, untapped potential in developing countries is expected to provide lucrative opportunities to the cannabis crop insurance market growth in the upcoming years.
The global cannabis crop insurance market trends are as follows:
Increase in Value-Added Services Provided by the Insurance Firms to Their Customers:
In developing economies, insurers are given opportunities to expand their business by bolstering the cannabis crop insurance policies. Furthermore, insurance companies that provide value-added services by implementing technologies and forming partnerships contribute to the market's growth. Satellites, drones, the internet of things (IoT), artificial intelligence (AI), mobile applications, and other web-based platforms are examples of sources of services through which clients receive value-added services such as risk control and claims management. These factors, therefore, are expected to drive the growth of the cannabis crop insurance market size during the forecast period.
Rise in Stringent Government Regulations Across the Economies:
The government aids crop growth and development. Increased government support to protect the cannabis crop sellers from fluctuations in revenues, prices, and yields is fueling the market growth. Furthermore, with this subsidized funding, insureds can obtain cannabis crop insurance coverage with more and customized options. As farming is a major source of revenue for many countries, the government has taken several steps to ensure that the farm sector is well-equipped and knowledgeable about the various types of insurance that may be available. Therefore, due to government initiatives, the cannabis crop insurance market share has grown and is expected to expand during the forecasted period.
COVID-19 Scenario Analysis
- The COVID-19 outbreak is still wreaking havoc on businesses around the world, and with a second wave now in multiple countries. It can wipe away any progress that had been made. Cannabis businesses, large and small, are shuttering their doors, laying off employees, and drastically restructuring their operations to cut costs and weather the global pandemic.
- Furthermore, a scarcity of labor for investing in and supplying crops in the market has hampered the crop insurance market indirectly during the pandemic. As a result, difficulties encountered during cannabis crop harvesting and distribution reduce the demand for cannabis crop insurance. However, following the recovery from the COVID-19, the cannabis crop insurance market is expected to thrive in the coming years.
Key Benefits of the Report:
- This study presents an analytical depiction of the global cannabis crop insurance market analysis along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the market share.
- The current market is quantitatively analyzed to highlight the global cannabis crop insurance market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the market.
Questions Answered in the Cannabis Crop Insurance Market Research Report:
- Which are the leading players active in the global cannabis crop insurance market?
- What would be the detailed impact of COVID-19 on the global cannabis crop insurance market?
- What are current trends that would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the global cannabis crop insurance market?
- What are the projections for the future that would help in taking further strategic steps?
Cannabis Crop Insurance Market Report Highlights
| Aspects | Details |
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 By Application |
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 By Type |
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 By Region |
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 Key Market Players | Sompo International Holdings Limited, PICC, American Financial Group Inc., Chubb, Zurich, American International Group Inc., ICICI Lombard General Insurance Company Limited, Tokio Marine HCC, QBE Insurance Group Limited, Fairfax Financial Holdings Limited |
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