Kita Secures £22.5M Capacity Boost: A Surge in Demand for Carbon Insurance Solutions
Kita, a prominent player in the carbon insurance sector based in London, has expanded its underwriting capacity to a remarkable £22.5 million. This enhancement is supported by key partnerships with major (re)insurance firms, including Chaucer Group, Munich Re Specialty, and RenaissanceRe, with Tokio Marine Kiln joining the panel in this recent expansion.
Innovative Solutions for Carbon Market Risks
Founded to tackle emerging risks within the voluntary carbon markets, Kita specializes in providing insurance solutions tailored to high-quality carbon projects. These innovative coverage products aim to:
- De-risk carbon transactions
- Unlock capital for climate-positive initiatives
- Establish itself as a key enabler in sustainable finance
Expanded Insurance Capacity and Global Reach
With the newly expanded capacity, Kita is now authorized to insure transactions up to £22.5 million (€22.5 million) with a policy tenor of up to 10 years. This move is designed to meet the increasing global demand, particularly from investors and carbon credit buyers across various regions, including:
- United Kingdom
- United States
- Canada
- European Union (EU/EEA)
- Switzerland
- Singapore
- Australia
Diverse Product Offerings
Over the past four years, Kita has diversified its offering to include four bespoke insurance policies, such as:
- Carbon Purchase Protection Cover (CPPC) for delivery risk
- Carbon Political Risk Cover (CPRC) for geopolitical risks
Additionally, Kita provides advanced risk monitoring and assessment services for stakeholders involved in the voluntary carbon market, reinforcing the need for insurance as a critical tool in de-risking carbon projects.
Market Potential for Carbon Credit Insurance
A recent study co-authored by Kita and Oxbow Partners estimates the total addressable market for carbon credit insurance could reach $1 billion in gross written premium (GWP) by 2030, with long-term projections soaring between $10 billion and $30 billion GWP by 2050.
James Kench, Managing Director – Insurance at Kita, expressed enthusiasm about the increased capacity, stating, “We are delighted to expand our capacity with Chaucer, Munich Re Specialty, RenaissanceRe, and Tokio Marine Kiln. They are fantastic (re)insurance partners who recognize the value of Kita’s market-leading carbon risk expertise.”
CEO and co-founder Natalia Dorfman added, “Carbon is a key element of the climate equation. It is crucial for the insurance industry to develop risk management tools and build transfer capacities that the carbon markets require to achieve global climate targets.”
To learn more about Kita’s innovative products and services, visit their official website or explore related articles on carbon insurance solutions.
