Commissioner Jones renews request to insurers to offer insurance for cannabis industry
News: 2018 Press Release
Commissioner Dave Jones sent a formal letter last week to California insurers encouraging them to fill insurance gaps for California's cannabis businesses. In part Jones' letter reads:
"The mission of the California Department of Insurance is 'Insurance Protection for All Californians.' We work with the insurance industry to promote a healthy insurance market that offers insurance products to meet the ever-changing needs of Californians and California businesses. This includes making insurance available to the state licensed legal cannabis businesses in California.
Even prior to the most recent decision by President Trump, there have been no reported instances of federal prosecution of a cannabis business lawfully operating in a state that legalized cannabis. The recent decision by President Trump should reduce further the risk of federal prosecution of legal cannabis businesses and the insurers that provide them insurance.
The Department of Insurance will process cannabis rate filings expeditiously and will not object to proposed rates that have a rational basis. I invite insurance companies to take advantage of the tremendous market opportunity represented by the cannabis industry that currently has revenues of $9 billion and is projected to grow to $60 billion by 2027. I look forward to the opportunity to work with insurers to increase the availability of insurance for the California cannabis industry."
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.