What has been the impact of the exit of Lloyd's of London from the cannabis industry?

James Vann
6/9/2017,
James Vann  replied:
It was pretty obvious in my opinion why they pulled out and it wasn't what they said. They had zero money laundering cases in court at that time. A quick google search showed (whoever underwrote them) close to $100 million in BHO claims working through courts. I've got dozens of emails warning the powers that be something like it was going to happen from five months before. Illegal bho explosions are our big fat ball and chain, hammering at our reputation and credibility every day. If we knew the dollar figure in lost brand equity we would be shocked. It is what the experts call a crisis and Lloyd's Exit citing too much risk is what they call a clue. I've got a list of them and Im not an expert. Were swimming in it, if your looking for opportunity flip over any stone the green rush road is paved with, our roads are paved in risk opportunity is underneath. But a city built of straw with no fire dept or crisis plan or risk management, wont last long. I have an easy answer but nobody is home they are all celebrating our wins! haha peace

What has been the impact of the exit of Lloyd's of London from the cannabis industry?

It has been one year since Lloyd’s of London exited the cannabis industry, can you speak to the impact, if any, that has made on the industry? 

JB Woods
6/18/2016,
JB Woods  replied:

Hi Hieu:

Great question! 

The first point to realize is a small number of insurance carriers offer specific coverage to the cannabis industry.  When Lloyds of London vacated, I believe their exit created turmoil within the insurance industry as other carriers carefully evaluated their level of interest to continue or by ltakig action to limit coverage to this segment.  

Furthermore, Lloyds of London was a viable marketplace to insure certain types of cannabis companies such as ancillary businesses that other insurance carriers would not cover.  I believe ancillary companies were hardest hit by the Lloyds departure.     

For cannabis licensees (dispensary, cultivation, and infused products manufacturers) certain lines of insurance such as general liability and property are offered by several companies and more readily available.  For those seeking product liability, directors & officers, employment practice liability, and professional liability, the cannabis insurance market is quite limited.  

Lastly, a comprehensive cannabis insurance program is available today that entered the marketplace when Lloyds of London exited.  I'm hoping more insurance carriers will realize the tremendous opportunity that exists in the cannabis industry particularly when companies such as Microsoft have conducted their own due diligence as cited below.  

http://www.usatoday.com/story/tech/news/2016/06/17/microsoft-makes-bold-move-into-marijuana-biz/86034484/

Thanks for the question.

 

James Vann
6/9/2017,
James Vann  replied:
It was pretty obvious in my opinion why they pulled out and it wasn't what they said. They had zero money laundering cases in court at that time. A quick google search showed (whoever underwrote them) close to $100 million in BHO claims working through courts. I've got dozens of emails warning the powers that be something like it was going to happen from five months before. Illegal bho explosions are our big fat ball and chain, hammering at our reputation and credibility every day. If we knew the dollar figure in lost brand equity we would be shocked. It is what the experts call a crisis and Lloyd's Exit citing too much risk is what they call a clue. I've got a list of them and Im not an expert. Were swimming in it, if your looking for opportunity flip over any stone the green rush road is paved with, our roads are paved in risk opportunity is underneath. But a city built of straw with no fire dept or crisis plan or risk management, wont last long. I have an easy answer but nobody is home they are all celebrating our wins! haha peace
Hieu Tran
6/18/2016,
Hieu Tran  replied:

Thanks JB, helpful. Indeed, the Microsoft announcement has been making lots of waves and I'm seeing it cited in numerous sources. I wonder if it foreshadows the entrance of other major companies into the industry.