Crop insurance has been available for many decades in key producing markets in North America, Europe, Australia and South Africa. Peril and multi-peril crop insurance are the main products available to predominantly large-scale farmers using modern farming technology.
The insured unit is usually the farm, with losses being adjusted by qualified personnel. Governments subsidize insurance premiums and, in some cases, provide additional forms of protection for large losses. Underwriting is based on a series of insurance-loss data, containing impacts of systemic risks such as drought or flood.
The developed markets generate a majority (80 percent) of the global agricultural-insurance premium, estimated at $16.7 billion in 2009 (see map). However, government support in premium subsidies is stagnating, or has been decreasing, as a high insurance penetration has been achieved and government priorities have shifted to other sectors of the economy.
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