Medicinal Cannabis Industry Australia (MCIA) has formed a partnership with insurance broker and risk advisor Marsh to help members build knowledge and strategies around risk management.
Marsh has been involved in the global medicinal cannabis industry for more than six years, with a dedicated team in Canada and other specialists based around the world.
MCIA said that international expertise and experience will help forge understanding and collaboration between the Australian medicinal cannabis and the insurance/financial sectors.
Chair Peter Crock said the tie-up will enable the body to share knowledge and develop industry-specific solutions for the benefit of its members and the broader medicinal cannabis industry.
Marsh Australia national manager, buying groups Daniel Rooney warned insurance can be costly for the cannabis industry and sometimes unattainable.
He added: “Over the last five years, we have seen the insurance market go through what is known as a ‘hard’ cycle where premiums increase, capacity and coverage are reduced and certain industries are unable to obtain coverage.
“This is due to global catastrophic losses and natural disasters, along with the increasingly common class action suits that have left a lot of the insurance market running at a loss.
“While this trend is starting to shift, we anticipate no significant change over the following 18 months. Medicinal cannabis faces added challenges as an emerging industry that is often not understood by insurers as well as the perceived stigma still surrounding the sector.
“We are currently working with insurers to further educate them on the industry and to develop products that meet the specific risk exposures of [cannabis] businesses.
“It’s exciting to deepen our involvement with an emerging [sector] and explore what is possible.”