OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode at the Risk and Insurance Management Society, Inc.’s (RIMS) conference in Boston, MA, a panel of industry experts said insurers face many challenges in underwriting the changing cannabis industry. Click on http://www.ambest.com/v.asp?v=rims3419 to view the entire program.
Legal cannabis is a rapidly growing industry, with reports estimating a $166 billion market emerging.
Nancy Bewlay, chief underwriting officer, long-tail risk, Axa XL, spoke about the legal perspective, giving an overview of the current legal environment.
“Underwriting the risk of cannabis is really tough,” said Bewlay. “To understand state by state where you are and what regulation you are working within is rough. It is hard to actually have a consistent product offering when there is not a consistent environment to be offering that product in.”
Kara Thorvaldsen, partner, Wilson Else, and Robin Westcott, vice president and general counsel, AAIS, discussed the state of market regulation, as well as the concerns held by insurers and regulators.
“I think one of the positive things about this new industry is that the regulators have learned lessons from the past and have had the opportunity from the outset to enact pretty strong regulations,” said Thorvaldsen. “I think the industry is very conscious of those issues, having seen the effects in the tobacco industry.”
“There is much more acceptance from the industry of the regulatory environment. It protects them as well,” said Westcott. “They need to make sure that there is not illegal activity going on in this marketplace. Ultimately, it is a benefit to be able to have that regulatory environment.”
For full video coverage of RIMS, including exclusive executive interviews, visit http://www.ambest.tv/rims19.
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