Specialty brokers looking to get insurers hooked on emerging industry
The legal marijuana industry in the United States is experiencing tremendous growth.
Legal cannabis markets in the United States are expected to grow 700 percent over the next five years, according to an industry report titled, “The State of Legal Marijuana Markets 2nd Edition,” published by The ArcView Group.
The report values the U.S. legal marijuana market, which comprises all states that have active and open sales of cannabis to people legally allowed to possess it under state law, at $1.53 billion. The national market is projected to grow 68 percent to $2.57 billion by the end of 2014.
The five-year national market potential is $10.2 billion, according to ArcView. Gains will stem from increased demand in existing state markets, as well as from new state markets coming online within a five-year horizon.
As individual states try to determine where they stand on the legalization of medical and recreational marijuana use, insurers are also evaluating this segment and what coverages — if any — they are prepared to offer to the businesses selling and growing medical or recreational cannabis products.
Insurers are looking at ways to offer specialty coverage for marijuana companiesInsurers are looking at ways to offer specialty coverage for marijuana companies
