The cannabis industry continues to grow rapidly. Just two years ago, the global market was valued at nearly $18 billion dollars. Expected to expand at a compound annual growth rate of more than 25% over the next several years, the industry is expected to be worth a staggering $134.4 billion by 2030 (source 1). Although still federally illegal, the cannabis business is attracting entrepreneurs and investors across the U.S., fueled by state legalization measures, growing sales, and a need for tax revenue. While the cannabis industry seems to be shedding its taboo market status in some areas, many financial institutions, including insurance carriers, still remain hesitant to offer cannabis coverage, with the majority of professional, casualty, and property insurance business finding a home in the E&S marketplace (source 3). In 2023, the insurance market for cannabis organizations is continuing to evolve and present opportunities across all lines.

When utilized appropriately telemedicine can enhance interactions among providers to improve patient care, support provider-to-provider training, expand service capacity, and enable physicians to manage patients with multiple chronic conditions from a distance by remotely monitoring patient health and activities (source 7). Telemedicine is not new, but with the emergence of COVID in 2020 the utilization of telemedicine exploded. The trend lines indicate that the use cases will continue to expand as will the patient base that has grown accustomed to the delivery model.

It comes as no surprise to employees or business owners that healthcare costs are on the rise. Many have felt the pinch of premium increases, higher deductibles, and soaring prescription drug prices. Unfortunately, those changes also serve to increase the total cost of Workers’ Compensation (WC) claims, making mitigating WC claim costs and controlling losses a primary concern for companies as claims get pricier and severity increases (source 2).

A special purpose acquisition company, or SPAC, is a company without commercial operations formed solely to raise capital through an initial public offering (IPO) or to merge with or acquire an existing company. Sometimes called “blank check companies,” SPACs have been around for decades, but their popularity has skyrocketed in recent years. In 2020, 247 SPACs with $80 billion invested were created, and 2021 saw a record 613 SPAC IPOs. By comparison, 2019 saw only 59 SPACs hit the market. During the 2020-2021 SPAC boom, the business model attracted well-known names including Deutsche Bank, Goldman Sachs, and Credit Suisse as well as many retired or semi-retired senior executives (source 2). However, while SPACs are still happening, their popularity is likely cyclical, as evidenced by the wind-down of many SPACs at the end of 2022 (source 8). Whether a SPAC completes a deal or not, there are still risks to be carefully considered.

Cybercriminals are waging a constant virtual battle to steal or ransom money and valuable information. Now, insurers are worried about the growing threat that actual war may spill over into cyberspace due to the conflict in Ukraine and rising geopolitical tensions worldwide (source 1). To combat the potential for catastrophic losses arising from cyber war and terrorism, Lloyds and other major insurers are deploying exclusions starting in 2023 for state-sponsored and widespread attacks. These exclusions add more uncertainty for insureds even as cyber policies evolve to address the constantly changing threat landscape. It’s crucial for retail agents and insureds to understand how these new exclusions may affect their cyber coverage and exposures. A wholesale broker with deep expertise in cyber coverage and strong carrier relationships can help guide retailers and their clients through potentially confusing policy choices to build the optimal cyber program.