Crop insurance has been available for many decades in keyproducing markets in North America, Europe, Australia and SouthAfrica. Peril and multi-peril crop insurance are the main productsavailable to predominantly large-scale farmers using modern farmingtechnology.

The insured unit is usually the farm, with losses being adjustedby qualified personnel. Governments subsidize insurance premiumsand, in some cases, provide additional forms of protection forlarge losses. Underwriting is based on a series of insurance-lossdata, containing impacts of systemic risks such as drought orflood.

The developed markets generate a majority (80 percent) of theglobal agricultural-insurance premium, estimated at $16.7 billionin 2009 (see map). However, government support in premium subsidiesis stagnating, or has been decreasing, as a high insurancepenetration has been achieved and government priorities haveshifted to other sectors of the economy.  

clickhere for a glossary of agricultural-insuranceterms