Year in review: Growing cannabis, cyber and weather claims

In 2019 we began to see how legalized cannabis could affect the insurance industry, policyholders suffered through an increase in wildfires and new cybersecurity risks continued to challenge businesses and municipalities. (Photo: Shutterstock)

Claims activity in 2019 has seen a number of familiar trends such as natural and man-made disasters like flooding, earthquakes and fires as well as mounting cyber claims. In recent years, cyber topped emerging risks as insurers not only scrambled to figure out how to cover incidents but also watched as businesses of all sizes lagged on adopting coverage.

In 2019, we watched as a newer threat started gaining momentum and stumping insurers in the process: the wild west of cannabis. As more and more states legalize the medicinal and recreational use of marijuana, insurers are trying to figure out how to insure a substance that is still classified as a Schedule 1 drug, making its use or sale illegal at the federal level.