Rein4ce clients, Skyfront Insurance and Hugh Wood Canada, are featured in the FT’s analysis of insuring the cannabis industry. US Finance Editor Robert Armstrong speaks to insurers, brokers and cannabis companies, who say that more widely available coverage is badly needed.
Neil Hitchcock, Chief Executive Officer of Bermuda-based insurance broker Skyfront, told the FT that there is “limited capacity to take risk” on cannabis businesses in the insurance market, and estimated that the legal US cannabis industry would pay about $1bn in annual premiums if it was insured to levels normal for other businesses.
Meanwhile, Kyle Nichols, President at insurance broker Hugh Wood Canada, said that even in a country where cannabis is legal, companies in the industry can pay five or even 10 times standard rates. “If your business plan includes the word cannabis, expect to pay more,” he said.
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