Cannabis captives a big opportunity, pending further legalisation

• US domiciles open to licensing cannabis captives, but await further state and/or federal legalisation
• States report strong start to 2023 licensing activity
• Hard insurance market, particularly in property, driving new formations

Captive regulators in the United States canvassed by Captive Intelligence at the 2023 CICA International Conference discussed the potential for licensing cannabis captives, as well as the impact of the hard market, new legislation and the 831(b) tax election.

Some form of medical marijuana is now legal in 37 states, while 21 states have legalised recreational marijuana use. The product, however, remains illegal at the federal level, which makes banking and insurance procurement challenging.