Cyber and marijuana risks are new focus in excess and surplus lines market
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Cyber and marijuana risks have become the focus of new insurance products in the excess and surplus lines market.
“Cyber is certainly a growing product line. It's continuing to mature as a product,” said Ronald S. Austin, president and chief operating officer of Los Angeles-based wholesaler Worldwide Facilities Inc.
Debra Goldberg, Deerfield, Illinois-based director of medical underwriting at wholesale broker Markel Corp., said interest has increased in insurance as more states legalize medical marijuana.
Chicago-based agent Wellness Medical Protection Group is offering up to $2 million per occurrence and $2 million aggregate in coverage to segments of the commercial marijuana industry, President Edward Kuhn said.
The policies are being written for three segments of the marijuana industry: growers, manufacturers and processors; dispensaries; and support businesses, such has laboratories, Mr. Kuhn said.
While he does not see insurers offering new products, “excess and surplus lines insurers are expanding into certain industries — for example, offering environmental liability for health care institutions,” said Jamie Crystal, executive vice president of New York-based brokerage Crystal & Company.
However, some specialty insurers are scaling back their offerings.
Alpharetta, Georgia-based E&S insurer Maxum Indemnity Co. completed its withdrawal from short-run, intermediate and long-haul trucking business earlier this year, said F. Marshall Turner II, president and CEO.
“We had invested almost nine years in building and trying to bring the division to make an underwriting profit, and we just weren't able to get to the level of profitability that we thought was reasonable,” Mr. Turner said.
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