When E-cigarettes were first introduced in 2004, they were just another fad. Over the last five years popularity of E-cigs and personal vaporizers has skyrocketed. Along with increased use of the products comes both state and federal regulations. Several states in the US already treat E-Cigarettes as tobacco products, which make them subject to smoke-free laws, age restrictions and other tobacco rules. The FDA recently ruled that E-cig and E-liquid manufacturers, distributers, and retailers will have to apply with the FDA to let their products stay on the market. While this process may take a couple years, this could greatly impact the availability and pricing of these products in the future.
The Insurance Industry relies heavily on state and federal regulations when insuring a particular risk. As regulations on E-cigs grow tighter, insurers may have an easier job assessing which risks can be covered, while E-cigarette companies will find it more difficult to get insurance. Since the long term effects of using E-cigarettes is still somewhat unknown, Insurance Carriers have had to take matters into their own hands to assess the potential dangers of insuring these products. This includes, but is not limited to, making sure E-cig distributers warn customers about the dangers using an E-cig or inhalation of nicotine, as well as having to pay a decent size premium to get insured. While Insurance Companies are already taking precautions when insuring these products, the new FDA regulations could make it near impossible to obtain insurance.