NFP, the Aon-owned insurance brokerage, has acquired the retail cannabis insurance business of Frontier Risk Group as it expands its specialty capabilities in a market facing changing federal regulation.

Financial terms were not disclosed.

Frontier Risk specializes in insurance placement and risk management services for cannabis and other regulated industries. As part of the transaction, Eric Schneider, senior vice president at Frontier Risk, will join NFP in the same role and report to Scott Foster, who leads NFP’s healthcare and life sciences practice.

Frontier Risk will continue operating its separate Strata Specialty business, which focuses on multi-program management for critical infrastructure and other emerging specialty markets.

NFP said the cannabis business will complement its existing Life Sciences practice, adding specialist expertise in an industry where insurance needs remain closely tied to regulatory and operational risks.

“Frontier Risk’s cannabis business is a natural fit for our Life Sciences practice,” Foster said.

Tom Gillingham, president of commercial risk at NFP, said cannabis businesses face a combination of changing regulation, evolving market conditions and specialised insurance requirements.

Schneider said joining NFP would give the team access to a broader national platform and specialty resources while allowing it to maintain its existing client relationships.

The acquisition comes as the regulatory environment for cannabis insurance continues to evolve. Federal policy shifted in December 2025 when the White House directed the rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act.

Lawmakers have also moved toward addressing the insurance industry’s exposure to federal enforcement. A bipartisan Senate bill introduced in July would protect insurers from federal penalties for providing coverage to state-legal cannabis businesses.

The changes could eventually encourage more mainstream insurers to enter a market that has historically relied heavily on specialty and surplus lines capacity because of the conflict between state-level legalization and federal cannabis restrictions.

For NFP, the acquisition adds an established specialist operation rather than requiring the brokerage to build a cannabis practice from scratch. The transaction follows other specialty acquisitions as the Aon-owned broker continues to expand its industry-focused capabilities.