- Oddly, this could help expedite passage of proposed federal senate and house bills that decriminalize medical marijuana in states that have approved medical marijuana use. This action of Lloyd’s could pave the way for improved insurance and banking services needed by the medical marijuana industry, and open the door to a flood of institutional investment waiting on the sidelines to participate in cultivation and distribution investment opportunities in the medical marijuana industry. In time, we expect corporate agricultural giants and farming coops to dominate the cannabis industry.
- The primarily family and entrepreneurial ownership driving this still cottage industry will change dramatically as the US federal government acknowledges the public interests in decriminalization far outweighs that of opposing special interests, like alcohol, pharma and even law enforcement. These conflicting special interest groups have long aided suppressing marijuana legalization and medical study and use.
- Nothing short of fear, false rumors and hostile economic interests have prevented US based scientific and medical study of marijuana and its compound derivatives. Had this not been the case for over 50 years, today there would be extensive US based human study data joining the growing mountain of scientific data from around the world concluding the benefits of medical marijuana and its many derivations outweigh associated risks and concerns.
- With diminished capacity to find commercial insurers willing to insure cultivators and dispensaries, premiums will likely increase over levels seen for the past 12 months for medical marijuana operations. There are domestic players as well as other international players besides London and not all insurance companies will follow Lloyd’s lead.
- The use of customized captive insurance companies will likely grow quickly as successful businesses in the medical marijuana industry in particular are extremely good candidates for creating a customized affiliate captive insurance company, that designed and operated correctly is extremely powerful with a range of important benefits.
- Using a closely held captive insurance company, rather than seeking insurance through commercial insurers who have been known to deny any claims or delay processing even if they agree a claim is valid, is something businesses in the medical marijuana industry should consider.
No comments yet.