Lloyd’s coverholder and carbon insurance specialist, Kita, working closely with lead capacity provider Chaucer, has introduced the ability to pay insurance claims in replacement carbon credits.
Clients of its flagship 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. The Carbon Supplier Pool will provide replacement carbon credits in the event of a claim.
The firm states that by paying insurance claims in replacement carbon credits, both carbon buyers and investors have greater flexibility in risk management options and confidence in meeting their high-integrity net-zero targets.
Natalia Dorfman, CEO and co-founder, Kita commented, “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.”
Chaucer will help Kita review and assess claims and offer replacement carbon credit payments, with cash payment for eligible claims also remaining an option.
Dr 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.”
There will be further recruitment to the Carbon Supplier Pool over time.
