When it comes to emerging risks, nowhere are they more apparent than in the insurance industry. From cyber liability to product recalls to Ebola, the list of risks insurers must anticipate for their clients is long and varied, and continues to grow.
A new issue insurers will be grappling with encompasses losses involving illegal or medical marijuana. Possessing, using or growing marijuana is illegal under federal law, but many states are passing laws that conflict with that statute. And while the generally accepted rationale for denying claims is whether or not the loss is illegal under federal law, state statutes are challenging that premise.
As a growing number of marijuana initiatives appear on state ballots, this provides a complex coverage dilemma for insurers. More drivers under the influence of drugs are getting behind the wheel of a car, increasing the risk of accidents for all. A recent survey by the National Highway Traffic Safety Administration found that the number of weekend nighttime drivers under the influence of drugs has increased to 20 percent since 2007. The survey also found that drivers under the influence of marijuana are more like to be involved in accidents.
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