The Cannabis Insurance Market
The Cannabis industry is a hot topic at the moment, and the market is set to boom!
In the USA, the legal marijuana industry is soaring and 2019 is predicted to be the biggest year yet. The industry grew to $10.4 billion last year in the U.S alone and with over 742 million people and a total healthcare spend of €2.3t, Europe is set to be the largest medical cannabis market in the world.*
Medical marijuana uses the marijuana plant or chemicals in it to treat diseases and medical conditions. The health and economic benefits of cannabis have been recognised by professionals for years, and more recently experts have empathised that there is a strong need for speciality insurance to cover the marijuana industry.
The cannabis insurance market is continuing to evolve as more states are moving in the direction of legalisation and as a result there has been significant increase in capacity and carriers participating in this space.
Market conditions are very fluid, as the legislation and requirements change daily, but the risks and perils that need to be covered are evident. From farming and distribution, to crop coverage, the demand is irrefutable. There is still a way to go and many discussions to be had within the industry but there is no doubt there will be opportunities for brokers and underwriters. Watch this space.
G&M International, part of the General & Medical Group, are long established players in the provision of specialist Insurance services to businesses and professionals both within the UK and internationally. As a Lloyds accredited broker, we have access to the full market enabling them to support a worldwide client base with specialist and niche schemes.