Kita Can Pay Insurance Claims In Cash And Replacement Carbon Credits

Kita Can Pay Insurance Claims In Cash And Replacement Carbon Credits - Carbon Herald
Source: Kita

Carbon insurance provider Kita can pay insurance claims not only in cash, but in replacement carbon credits as well, which is one of the most innovative things the company does, according to CEO and Co-Founder Natalia Dorfman. 

Carbon insurance is an emerging industry that is only beginning to grow and develop right alongside carbon markets. 

But it is a very necessary industry in that it is essentially what can enable much-needed institutional finance to flow towards carbon projects that help reduce, avoid and remove planet-warming CO2 emissions from the atmosphere. 

Kita is one of the most prominent players in the carbon insurance sector, and a genuine trail blazer at that. 

The company offers carbon insurance products that bring more reliability and confidence in carbon credit purchases.

Its flagship product, the Carbon Purchase Protection Cover, for instance, insures forward purchased carbon credits against delivery risk and addresses the main criticism of the voluntary carbon markets (VCMs), which involves false emissions reduction claims.

The products raise the accountability of carbon credits and ensure the delivery of purchased emission reductions with the option to have  any insurance claims paid out in either cash or replacement carbon credits.

Relevant: Kita Continues Global Expansion With Switzerland And Singapore

Kita’s CEO and co-founder sees these new steps and developments as pushing the industry forward with already noticeable results, such as the growing interest from larger financial institutions and asset managers, who are beginning to “take this market seriously”. 

“Our projection is that the gross written premiums (GWP) of the carbon insurance market can get to $1 billion by 2030, and become much larger by 2050,” Natalia Dorfman told Carbon Herald during our chat on the Carbonsations podcast. 

Listen to the full conversation on Spotify and Apple Podcasts.

Read more: 95% Of remove Startups Are Still Active And Making A Difference

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