New Dawn Risk has today launched its latest white paper on insurance for the US legal cannabis, CBD and hemp markets. The 2021 report is called “Opportunity knocks at last in the US cannabis insurance market”.
Download the white paper here.
publication of the previous report in 2020, US sales of medical and
recreational cannabis have grown exponentially, reaching $17.5 billion in 2020,
a 46 percent increase from 2019. In addition, the legislative landscape in the
USA has been transformed by the arrival of the pro-cannabis Biden presidency,
supported by a Democratic majority in both Houses.
A new CLAIM
(Clarifying Law Around Insurance of Marijuana) Act has been introduced to the
Senate, alongside the parallel SAFE Banking Act, and both are expected to pass
into law by the end of 2021. This will
at last permit insurers to work with the cannabis industry legally; and will also
reduce some of the insurance risks that previously dogged the industry. For example, D&O cover will become a
legally available option, and marijuana businesses will be able to regularise
their banking and cash operations.
The updated white paper examines the key drivers of growth whilst
exposing both the potential premiums and the size of the insurance gap for the
cannabis industry in the US. Headlines include:
Max Carter, CEO of New Dawn Risk, commented: “The legal and
regulatory environment of the cannabis industry has transformed over the past
“The changing attitude towards the cannabis industry, and new State
and Federal legislation present an exciting opportunity for insurers to work
with growers and sellers. With legalisation of banking and insurance, the door
seems likely to open to what could be a $1bn premium market.
“On the consumer side, cannabis was deemed an “essential business”
during the Covid-19 pandemic, and the growth of the sector seems inexorable.
New Dawn Risk is committed to working with carriers and clients to share
knowledge and insights to help identify and deliver cover for this untapped
Notes to Editors
Established in 2008, New Dawn Risk is a dynamic, specialist insurance
intermediary providing bespoke advisory solutions. We focus on complex,
international liability and other specialty insurance and reinsurance. Clients
large and small profit from our expertise, creativity and responsiveness – from
risk assessment through to claims. 95% of our business emanates from outside
the United Kingdom.