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Frontier Risk sequred $3 mn seed+ round to underwrite cannabis risk

Frontier Risk sequred $3 mn seed+ round to underwrite cannabis risk

Frontier Risk Group has closed of a $3 mn seed+ round, bringing together venture investors from the cannabis and insurance sectors to build the industry’s first tech-enabled insurance ecosystem to better service cannabis risk. The company has raised $6 mn in funding to date.

Existing investor Casa Verde, a pioneer in cannabis technology investing, led the most recent financing round with significant insider participation.

The deal also includes a strategic partnership with Illinois Casualty Company, focused on the food & beverage industry, marking a move by traditional insurers into the cannabis sector. Stonybrook Capital acted as financial advisor for the transaction.

Frontier Risk Group is driven by a mission to bring market insurance solutions backed by technology and data to improve access, pricing and risk capacity across highly regulated, specialty ecosystems.

James Whitcomb, Frontier Risk Founder and Chief Executive Officer

The first 18 months of Frontier Risk have proven the major need for specialty insurance solutions across cannabis and other regulated industries, and we’re thrilled to announce today’s funding with the continued support of existing investors and the addition of Illinois Casualty Company as a major strategic investor

James Whitcomb, Frontier Risk Founder and Chief Executive Officer

“This capital will allow us to continue our robust brokerage growth and complete our transition to full-stack retailer and capacity provider, offering the entire cannabis supply chain a one-stop solution to a diverse array of insureds with underwriting specific to highly regulated industries,” says James Whitcomb.

Medical marijuana is now legal in 20 states in Canada and in the District of Columbia and recreational cannabis is eligible for sale in 23 states along with D.C.

Retail cannabis sales are expected to increase to $54 bn by 2027. Despite this explosive growth, cannabis cultivators, retailers and businesses serving cannabis-infused products face unique insurance risks that represent a barrier to entry for most insurance providers.

Whitcomb’s team of brokerage, underwriting, and technology professionals from world-leading firms have built a proprietary underwriting engine, complete with rich datasets to offer reinsurers a clear understanding of the present risk associated with cannabis and where it’s going.

Frontier Risk sequred $3 mn seed+ round to underwrite cannabis risk

Our data-driven, service-first brokerage model allows us to provide better risk management solutions than traditional brokers who are still “getting up to speed” on cannabis.

The cannabis business is growing rapidly, but it lacks specific insurance and risk consulting solutions built and implemented by experts who have lived risk throughout the cannabis value chain.

Cannabis claims are complicated, yet quote-to-bind-to-claims service is bad. Policy management should be like checking email. Frontier Risk’s software platform simplifies risk management tasks including retrieving a Certificate of Insurance or adding an extra insured or endorsement.

“We’ve lived our clients’ operations, pain points, and hazards as cannabis operators. We offer top brokerage and risk management advising services by combining institutional knowledge with underwriting and insurtech expertise,” says James Whitcomb.