Most people in the cannabis space expect CBD to be big, but a new report highlights the potential of the cannabis product, which has some in the insurance community already stepping up their game.
New Frontier Data on Thursday issued its latest report, Cannabis-Infused Products: Navigating the Complexities to Market, Vol. 2, in partnership with SōRSE Technology.
Among its findings is that nearly one-in-five Americans polled said they have consumed a CBD product.
The report from the Washington, D.C.-based data analytics company specializing in the global cannabis industry explores areas of cannabinoid-infused product development, regulatory hurdles constricting the market and strategies that brands use to capture market share.
“New Frontier Data’s research shows cannabis and CBD consumers vary widely in their demographics, product preferences, purchase behavior, reasons for use and consumption frequency,” said New Frontier Data Founder & CEO Giadha A. DeCarcer. “In such a dynamic consumer environment, brands must develop data-driven consumer strategies to secure their market position as competition intensifies and the product landscape becomes more saturated.”
Norman Ives, a broker and cannabis practice leader at wholesaler Worldwide Facilities LLC, said the wholesaler’s Nutrarisk division has lately kicked it into high gear to capture anticipated CBD-related business.
“We saw a huge growth spurt last year,” said Ives, who has been broking in the cannabis space for the past eight years. “We probably wrote more hemp/CBD policies last year than we did marijuana policies.”
Worldwide recently launched an exclusive program focused on CBD and nutraceutical products in London under its Nutrarisk program that’s placed with Lloyd’s.
“This year it’s far more processors,” Ives said. “By and large the largest growth I’ve seen has been in drying, processing and extracting hemp.”
There’s also a downside to insuring CBD, with nearly a dozen major CBD-related class action lawsuits, as well as a handful of legal and regulatory actions against some CBD companies.
Key findings from the New Frontier report include:
- 66% of Americans surveyed have had positive conversations about CBD, revealing a dynamic and positive perspective towards CBD
- 18% of Americans surveyed have consumed CBD products, with widely varied reasons for use including pain, medical, unwinding and general wellness
- THC-infused edibles are legal in states where medical or adult use cannabis is legal, but the licensing requirements to be a cannabis-infused product manufacturer vary widely
The report also notes that national rules governing CBD are still in flux, with a decision still pending from the FDA on whether CBD-infused food will be permitted in the general commercial market
Original Article: https://www.insurancejournal.com/news/west/2020/09/17/583037.htm