Captured insurance structures and vehicles can be beneficial for companies in the cannabis industry that face restrictive conditions and capacity when seeking coverage, experts say.
Rocco Petrilli, president of the National Cannabis Risk Management Association, said that captured insurance arrangements can offer the covered group a level of enforcement and control necessary "to give the insured access to the types of products and coverage and capacity they have." looking for, ”said Thursday morning at the Business Insurance Cannabis & Hemp Conference, which was held online.
However, Captive insurance can be "a little more difficult in its complexity, even to function", a valuable trade-off given the flexible offer, he said.
Insurance capacity is still tight in the cannabis market, says Petrilli, largely due to the federal criminal conflict. "Captive formation can help meet the desperate need for capacity."
Tim Schermerhorn, vice president of Hub International, said the broker has formed a homogeneous, private prison exclusively for cannabis and hemp companies. The prisoner, he said, "allows maximum freedom for groups to tailor their cost constraints to meet their individual needs."
Mr. Schermerhorn added that prisoners provide flexibility to employers compared to traditional operator alternatives.
Brian Wall, Vice President of Adaptive HR, said that the professional employee organization's captured model allows the organization to collect data, such as demographic information, from a large number of workers. , data that can be used to inform preferential decisions.
Brian McLaughlin, market leader with My Benefit Advisor LLC in Wallingford, Pennsylvania, said that data collected through a captive insurer can be used to build better risk management programs and "better manage risks". ”