Thread by @joinditto

As the U.S Congress inches closer to the historic legalization of weed at the federal level, there is one industry that is all geared up to witness a potential 10X increase in sales.

And that’s #insurance.

How so?👇 (1/8)

Well, several US states have already legalized marijuana for medical or recreational purposes.

But strict federal laws that criminalized it has prevented the insurance industry from extending services to cannabis businesses - growers, testing labs, and retailers. (2/8)

But it's not that marijuana farmers do not get insurance at all. Insurance in the US is state-regulated, which means farmers do get insurance in states where it is legal. (3/8)

But it's only the smaller insurers or "boutique" companies that provide them.

Due to a handful of insurers offering coverage to cannabis businesses, insurance premiums for people in this space stand 20-30% higher, as against other industries. (4/8)

Large insurance companies do not want to write different policies in accordance with the different rules across states.

So with no clear and concise rules in place, they have been avoiding this scene. (5/8)

In fact, the insurance industry wrote about $250 mn in policies for cannabis companies in 2020, which is a very small amount, considering the industry's nationwide sales are expected to pass $40 bn in 2026. (6/8)

The booming $17.6 bn-a-year cannabis industry stands to be heavily uninsured, & insurance backup is a relief for people whose incomes are heavily derived from it.

Which is why insurers, farmers, & business owners: all are having a good trip with the potential legalization (7/8)

Btw, did you know Ditto helps you select the best health & term insurance policies for you and your loved ones? Book a FREE consultation call with our advisors- bit.ly/3ADvAKf (8/8)