Lloyds of London were one of the biggest insurers of Cannabis companies until their recently leaked departure from the market, which will leave many companies high and dry without cover.
Newport Beach, CA -- (SBWIRE) -- 12/07/2015 -- The Cannabis industry in the US is one of the fastest growing in the world, and many investors are seeking to make a profit from the future of marijuana. As such, it comes as a shocking development for the industry when Lloyds of London cancels cannabis insurance. Marijuana Insurance Agent is advising companies to check their policies, as the insurance giant once underwrote a large majority of the insurance policies for marijuana businesses in the United States.
Lloyds of London operates differently to most other insurance companies. It is, in fact, a marketplace, within which members can form syndicates and pool capital to insure risks. Because of this unique process, the establishment has long prided itself on its ability to price risk in a way other companies cannot.
Tom Bolt of Lloyds drafted a memorandum to its members and brokers, "Any policies of this type that are currently in force should not be renewed and no new business should be written."
Marijuana Insurance Agent, which provides Marijuana Insurance Services, warns that many companies are now about to be stung by the exit, even if their policies aren't with Lloyds. U.S.-based insurers have served the cannabis industry by acting as brokers for policies funded by Lloyds' syndicates. What's more, U.S. insurers price their own policies based on factors established by Lloyds, to provide insurance without having to assess risk themselves.
A spokesperson for Marijuana Insurance Agent explained, "It appears as though Lloyds is becoming more cautious with its approach to the emerging cannabis market, much like the reluctance that other financial institutions have shown towards involvement with the industry. Lloyds has not publicly announced the reason behind its decision to exit such a promising and rapidly growing marketplace. Whether it was too risky, there was not enough data, or they sought to avoid anti-money laundering laws, the exit will see premiums rise for cannabis companies. We are on hand to help companies needing new policies to find the very best insurance available."
About Marijuana Insurance Agent
Marijuana Insurance Agent is a broker providing insurance policies to cannabis-related businesses in the United States. With policies created specifically for growers, dispensaries, doctors, testing labs, edible manufacturers, and commercial property, Marijuana Insurance Agent provides coverage tailored to the exact needs of a cannabis business.
For more information please visit: http://marijuanainsuranceagent.com/