The number of unknowns surrounding the gradual legalization of marijuana across the U.S. far outweighs what insurers currently understand about this enterprise. For an industry that relies heavily on actuarial data to assess risk, this new venture provides little information on which to base coverage decisions or risk management strategies.

Just trying to find growth projections illustrates how much is unknown about the legalized marijuana industry. Grand View Research estimates that the global legal market is expected to reach $146 billion by 2025. The company also predicts that medical marijuana will reach an estimated value of $100 billion by 2025. Contrast these numbers with data from Arcview Market Research and BDS Analytics, which predict that spending on legal cannabis is anticipated to reach $57 billion worldwide by 2027. New Frontier Data, which describes itself as an authority on data for the cannabis industry, predicts that the legal cannabis market will grow to $25 billion by 2025. The greatest opportunity for growth is believed to be in the area of recreational use, which is anticipated to expand 67% by 2025.

There is a famous adage, "Follow the money," and that's particularly true in the case of legalized marijuana and hemp products. With 33 states, Guam, Puerto Rico and the District of Columbia legalizing some form of medical marijuana, and 10 states plus the District of Columbia adopting laws that allow its use recreationally, it is well beyond time for the insurance industry to consider what type of impact legalization will have on the various lines of business.