With the Right Technology, Insurers See Green in More Ways than One

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With the Right Technology, Insurers See Green in More Ways than One

As more state regulators approve cannabis as a legitimate line of business, how will insurers manage its risk — and capitalize on the industry’s future? Such is the question posed in the 2018 Fall/Winter edition of the Insurance Accounting & Systems Association’s Interpreter magazine.


The discussion is an important one, as an increasing number of states legalize cannabis for both medicinal and recreational use. On further look, the insurance industry is prime for growth, as a host of other commercial lines’ opportunities spring up—from greenhouses to retail to financial services and credit collection–as they offer support the cannabis growers.


How are insurers responding? Following the lead of just a few other insurers entering this space, Cleveland, Ohio-based Continental Heritage Insurance Company, which provides specialty surety bonds across the alternative energy, construction, court, and environmental industries, chose CHSI Connections® SaaS-based core administration system software to ramp up its business after receiving approval by the California Department of Insurance to offer its products liability and recall insurance for the California medicinal and adult-use cannabis market.


Continental Heritage is moving quickly, with a goal to insure 200 such businesses in California this year alone, it’s also hoping to expand into Colorado, Nevada and Washington.


On page 16 of the IASA article entitled, “From Seed to Sale: Cannabis Signals New Risk, Opportunities,” Lee Mashore, chief product officer at CHSI Technologies, notes “Being one of the first to market in an under-served area such as cannabis liability will require the utmost in enterprise-class software that is tailor-made to fit the unique and fast-growing needs of a carrier like Continental Heritage.”


CHSI will furnish Continental Heritage with CHSI’s Connections modular suite of cloud-based core systems software, including policy administration, underwriting, CRM, billing, and more to help the insurer serve the growing needs of the market.


To read the IASA Interpreter article in full, IASA members can access via the following link: https://www.iasa.org/iasadocs/Interpreter/INT-2018-InterpFallWinter-Fnl.pdf