Softening market for cannabis, but captives remain popular  

• Legalisation at federal level would lead to insurer participation 
• Property rates continue to be higher than other industries 
• Employee benefits captives on the radar for cannabis sector 
• Reclassifying marijuana from Schedule I remains possible under Trump 

While the commercial insurance market is beginning to soften for businesses in the legalised cannabis sector, captives continue to provide a popular option for risks that remain challenging such as liability and property. 

Historically, some cannabis businesses were paying six or seven times more for insurance than other industries, though the pricing has started to come down in recent years.