Marijuana insurance market is still an area of hesitation for insurers

Marijuana insurance market - cannabis plant

Some insurance providers remain cautious to enter the cannabis insurance market. The marijuana insurance market is growing quickly, but insurers themselves remain cautious. States are increasingly legalizing cannabis products, but there are risks involve that may keep some providers from taking part, said a new A.M. Best report. There are many barriers and risks making insurance companies hesitant to enter the market. Among the leading barriers to entry into the marijuana insurance market is the federal government. The reason is that while individual states are commonly legalizing the drug, the…

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Dave Jones wants more entries to the California marijuana insurance market

California marijuana insurance - Marijuana plant

The California Insurance Commissioner has called on insurers to help fill coverage gaps in this marketplace. Insurance Commissioner Dave Jones recently called on insurers to take part in the California marijuana insurance market. The goal is to help to fill the coverage gaps that exist among businesses seeking to grow and distribute this drug. California state law says that medical marijuana is legal, though federal law still considers it illegal. Jones’s announcement was made at the same time that a new workers’ compensation insurance program was launched. Atlas General Insurance…

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Canadian life insurance companies no longer equate marijuana use to “smoking”

life insurance companies - Marijuana

Changes to the country’s laws and social attitudes have brought about change in industry policy. Life insurance companies in Canada have traditionally labeled cannabis users as being “smokers.” However, a recent change in the country’s industry has changed this situation among many insurers. Smokers are typically penalized by life insurance companies and, until recently, that included pot users. The Canadian Life and Health Insurance Association director of health and disability policy, Joan Weir, explained in a CBC report that many life insurance companies have stopped equating light marijuana use with…

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California cannabis insurance claim payout reaches $1 million

Cannabis Insurance - Marijuana Plants

A company in the state received a historic payment following crop damages from wildfires. A cannabis insurance payout has recently broken prior records in California. The Thomas Fire burned through a legal marijuana business at the close of last year (and the start of this one). The payout for the insurance claim was $1 million – higher than any previous payout in this category. This wildfire insurance payout is an indicator of the speed of growth of the legal marijuana industry. A Southern Californian cultivator of marijuana was covered by…

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California’s Dave Jones asks for cannabis insurance coverage in the state

cannabis business insurance marijuana

Large players in the insurance industry are typically staying away from the drug, even where it’s legal. California Insurance Commissioner Dave Jones is seeking to improve the cannabis insurance availability in the state. The primary issue is that large insurance companies are hesitant to provide coverage in this portion of the industry. The United States is regularly launching regulated and perfectly legal markets in which patients can shop. Despite the fact that these markets are indeed regulated and legal, insurers, like banks, have stayed away. Jones is seeking to change…

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