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Insurance implications linked to the use of cannabis

Noted are some health implications linked to the use of cannabis that may impact the underwriting cost of insurance, including its possible effect on the brain, the likelihood of risky behaviour associated with cannabis use, mental issues like paranoia and psychotic episodes, and chronic bronchitis, lung disease and other social implications. While the private use of cannabis in one’s home is permitted in South Africa, the potential health risks require you to declare to prospective insurers the following: how frequently a substance is used, how much of it is used, and any alcohol consumption. If cannabis is being used medicinally, this also needs to be indicated, along with the condition requiring the treatment.
A regular cannabis user will most likely be risk-rated based onthefrequency of use, history of any addiction and treatment thereof, use of a single substance in combination with other substances, age, and occupation. The risk will also be assessed against the financial services products being applied for and an individual’s existing medical conditions that may impact the use of the substance.
Your premium may also be influenced by the frequency with which you use the substance, how much you consume and whether you use other substances alongside it.
In conclusion, reinsurers and insurers like Sanlamhave always applied a scientific, rational, and fair approach in underwriting substance use and this remains unchanged in the context of cannabis or any other substance. Our ‘philosophy’ about smoking – cigarettes, e-cigarettes, and cannabis – is reviewed and adapted regularly as new evidence emerges.
Please contact me for more information.
Sanlam Life is a Licensed Life Insurer, Financial Services and Registered Credit Provider (NCRCP43