It’s still early, but claims experience thus far in the cannabis insurance market is encouraging, according to one leading writer. “So far, we’re optimistic that we’re going to see that our experience is going to be better than our other lines of business,” said John Donahue, president and CEO of Topa Insurance Co., which offers cannabis products in more than a dozen states.
Donahue made the comments during an hour-long Insurance Journal webinar, Cannabis & Insurance, What You Need to Know About the Budding Business, which aired live on May 15. The webinar can currently be viewed on the Insurance Journal Research and Trends section.
The webinar, which was sponsored by Cannasure Insurance Services, also featured two other panelists with experience in the area: Chris Boden, cannabis practice group team leader for Crouse and Associates, and Ian Stewart, a partner in Wilson Elser and chair of the firm’s cannabis law practice team.
Donahue acknowledged that new ventures generally have a worse loss history than existing long-term businesses.
“And so, we tend to be very conservative around our pricing, and our philosophy, and the underwriting, but it’s really early in the game. We’ve seen some property losses,”