Kita, a carbon insurance specialist and Lloyd's of London coverholder, is offering a unique insurance option. Clients of its Carbon Purchase Protection Cover can now choose to receive their insurance claims in carbon credits. This innovative approach reflects Kita's commitment to supporting clients in reaching their net-zero goals.
Kita's move to pay claims in replacement carbon credits addresses the needs of companies engaged in carbon markets. The company has garnered support from Everland, Pachama, Vertree, and Respira, who will serve as founding members of a Carbon Supplier Pool to provide carbon credits in the event of a claim.
This option offers greater flexibility in risk management for carbon buyers and investors, enabling them to meet their net-zero targets more effectively. Kita collaborated with Chaucer, a capacity provider at Lloyd's of London, to develop this offering.
Natalia Dorfman, CEO, and co-founder of Kita, highlighted the company's mission to promote financing for high-integrity carbon projects. She expressed pride in Kita's leadership in offering claim payments in carbon credits, with plans to expand the Carbon Supplier Pool.
This option is available to clients who purchase Kita's Carbon Purchase Protection Cover, which safeguards buyers of forward-purchased carbon credits from under-delivery. Kita will work closely with Chaucer to assess claims and offer carbon credit payments, alongside cash payments.
Dr. Hayley Mayard, Head of Innovation at Chaucer, emphasized the company's commitment to sustainability. Offering carbon credit payments is a significant step towards helping clients meet their net-zero and sustainability goals.
Replacement carbon credits for eligible claims will be provided from Kita's Carbon Supplier Pool, with the potential for additional members to join over time, creating an ecosystem for sustainable innovation.