Industry Analysis & Industry Trends
Despite growth over the past five years, revenue generated by the Agricultural Insurance industry remains below pre-recession levels. 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 2.5% over the five years through 2016-17. However, this is partly due to weak revenue performance in the base year. In 2016-17 IBISWorld expects the economic environment to deteriorate slightly, but industry revenue is still forecast to increase by 0.2% to reach just under £1.3 billion... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the industry is low, with an estimated £18.47 spent on labour for every £1.00 invested in capital. While industry participants invest heavily in technology to capture data 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.
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