Canada is on the verge of colossal change – and it’s change the insurance industry can capitalize on.
The Government of Canada is hoping to legalize recreational-use cannabis by the summer of 2018. Justin Trudeau’s liberal government is now setting about the tricky task of deciding what the final bill will look like.
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In the meantime, the country is stuck in limbo as nobody knows what regulatory changes will be enforced. But one thing’s for sure, according to Barinder Rasode, president and CEO of NICHE Canada, the insurance industry is going to have a major role to play.
“The insurance industry is going to be critical once cannabis is legalized, not only for businesses who are planning to participate in the industry through manufacturing, distribution or retail, but also from the perspective of healthcare and employer insurance,” said Rasode. “I think that insurance companies are definitely going to be one of the biggest stakeholders once the legalization bill is passed and we have to move to implementation.”
Pot legalization will bring about significant regulatory changes, which are going to affect the insurance industry. Successful legalization is going to require a “solid and open relationship” between the Government and various industries, and a transitional period after the bill is passed, according to Rasode.
“The Government has to recognize that it needs to let the rest of Canada catch up once the legalization bill is passed,” Rasode told Insurance Business. “Until we actually see what is passed, it’s hard for other regulatory bodies to change their regulations and guidelines and it’s hard for a municipal government to change its by-laws. So, I think that once the legislation is passed, there will need to be a transition period when everyone else has the opportunity to catch up and reach the same page.
“The scope and magnitude of this change will probably be the greatest we will see in our lifetime in Canada. The risks are that we do not fully understand the market and that we expect other industries like the insurance industry or the medical industry to make changes too quickly in order to meet criteria in the legislation. There needs to be an opportunity not only for consultation but also for the Government to provide support throughout the implementation because these are big regulatory changes.”
Canada can get cannabis legalization right if all of the industry stakeholders are moving at the same pace. This will require credible and thoughtful research, according to Rasode, who said a “broad-based public education campaign” is critical.
Rasode’s work at the National Institute for Cannabis Health and Education (NICHE) is about building a bridge of communication between the Government and other industries, and carrying out unbiased research in order to improve education about cannabis.
“As the Government is moving forward to bringing the biggest policy, legal and regulatory changes in our lifetime, there should be resources available for industries who are going to be called upon to regulate differently than they have in the past,” Rasode added. “I hope the Government will be able to support the insurance industry with centres for substance abuse and other types of assistance to make sure we do legalization right.”
Hear more from Barinder Rasode at the upcoming Cannabis Cover Masterclass, which is taking place on October 10, 2017 in Toronto at the St. Andrew’s Club & Conference Centre. The event will feature a host of leading insurance influencers from the likes of Next Wave, CUBIC Health, and HKS Strategies, bringing together key perspectives on regulation, cannabis-specific risk, business growth and how legalization could affect the insurance market. Visit cannabiscover.ca for a full list of speakers, the full agenda and to register for the event.
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