Kita, a specialist carbon insurance provider, has expanded its underwriting capacity by 450% to $29.1 million (£22.5 million) in response to growing global demand for carbon risk management solutions.
The company is now authorized to insure transactions with limits up to $29.1 million and policy tenors of up to 10 years.
The expansion underscores the market’s increasing reliance on insurance to de-risk high-quality carbon projects, according to a statement by Kita on Wednesday.
The underwriting capacity will continue to be led by Chaucer Group, with ongoing support from Munich Re Specialty and RenaissanceRe, and new participation from Tokio Marine Kiln.
Kita has broadened its product offerings over the past four years, now providing four insurance policies, including Carbon Purchase Protection Cover (CPPC) for delivery risk and Carbon Political Risk Cover (CPRC) for political and host country risks.
The company also offers risk assessment and monitoring services to carbon market participants.
Relevant: Kita Expands Carbon Credit Delivery Risk Insurance To EU And EEA
With authorization to insure buyers and investors across multiple jurisdictions, including the UK, US, Canada, EU/EEA, Switzerland, Singapore, and Australia, Kita continues to expand its global reach.
Together with Oxbow Partners, Kita recently published a report, projecting the total addressable market for carbon credit insurance to grow from $1 billion in annual Gross Written Premium (GWP) by 2030 to $10-30 billion by 2050.
Kite’s CEO, Natalia Dorfman, highlighted insurance as a critical tool in supporting investment in carbon markets to achieve global climate targets.
The company’s expanding capacity will help meet the increasing demand for carbon risk solutions, unlocking essential financing for the sector, according to Managing Director of Insurance, James Kench.
This announcement follows Kita’s recent jurisdictional expansion and the launch of its Carbon Political Risk Cover, reinforcing its position as a leader in carbon risk management.
Read more: Kita Launches Full-Spectrum Active Risk Monitoring Services For The Carbon Markets
