Insurance Age Reports
Underwriters at Lloyd’s of London have been given permission to insure legal cannabis-related activity that takes place in Canada.
According to a report by the Financial Times the marketplace sent a note to underwriters explaining that the legalisation of cannabis-related activity in the country could give rise to “new opportunities for insurers considering writing related risks”.
Canada is set to legalise recreation use of the drug in October this year.
Advice
The report stated that Lloyd’s took legal advice to ensure that offering insurance to cannabis producers, distributors and sellers in Canada would not break laws outlined in the UK Proceeds of Crime Act.
Insurance Age has approached Lloyd’s for a comment.
Lloyd’s most recent set of results showed it had slumped to a £2bn loss for 2017. This was compared to a £2.1bn pre-tax profit in 2016. The 2017 COR also worsened to 114% compared to 97.9% in the previous year.
Current CEO Inga Beale is also set to step down from the organisation next year after five years at the helm.
Source: https://www.insuranceage.co.uk/insurer/3572586/lloyds-to-allow-cannabis-insurance
