MGA Kita pioneers carbon credit claims

Kita, a carbon insurance specialist and Lloyd’s of London coverholder, has rolled out a new option for carbon credit claims in collaboration with lead capacity provider Chaucer.

Kita has introduced the ability to pay insurance claims in replacement carbon credits, meeting a significant need for companies engaging in the carbon markets.

Clients of its Carbon Purchase Protection Cover insurance now have the option to receive insurance claims in carbon credits.

The company has secured Letters of Intent from Everland, Pachama, Vertree and Respira to be founding members of a dedicated Carbon Supplier Pool, which will provide replacement carbon credits in the event of a claim.

Kita said that by paying insurance claims in replacement carbon credits gives carbon buyers and investors greater flexibility in risk management options and confidence in meeting their high-integrity net zero targets.

Kita will work closely with lead capacity provider, Chaucer, to review and assess claims and offer replacement carbon credit payment. Cash payment for eligible claims will also remain an option.

Natalia Dorfman (pictured), CEO and co-founder of Kita, said: “Kita’s mission is to drive more financing to scale high-integrity carbon projects, and we believe insurance is a key enabler to do this. We are proud to be leading the field when it comes to paying claims in carbon, and look forward to working with, and expanding, our Carbon Supplier Pool as we move forward.”

Hayley Mayard, head of innovation, Chaucer, added: “At the heart of our sustainability strategy is our commitment to being a force for good. Our ability to pay valid claims via carbon credits is a key step to ensure clients are able to meet their global net-zero and wider sustainability ambitions.”

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