Bermuda is extremely unlikely to be able to provide a captive insurance solution for the US cannabis industry unless the federal prohibition is lifted, according to Mike Parrish, senior vice president and business development lead, Marsh Management Services Bermuda.
Parish, who was speaking at the Bermuda Executive Forum in London, clarified that he was speaking based on his own opinion and not on behalf of the Bermuda Monetary Authority.
He said while Canada’s national legalisation of cannabis meant the domicile may be able to provide captive solutions for the Canadian cannabis industry, the US federal stance caused issues.
Parrish commented that discussions he had been part of on the topic suggested the US cannabis market could be an issue.
He explained: “The US federal prohibition of cannabis remains a problem for Bermuda on issuing policies.”
“I can’t see a situation where Bermuda would allow a company to issue a policy that is illegal under US federal law.”
“It is unlikely that Bermuda can be a solution for those companies unless cannabis is legalised at the federal level.”
