Following the announcement of Tokio Marine Group’s strategic investment in Kita, the specialist carbon insurer and Lloyd’s of London coverholder plans to expand its collaboration across the group, working with additional Tokio Marine companies to bolster the growth and integrity of global carbon markets.
The investment reportedly builds on Kita’s existing relationship with Tokio Marine Kiln, with the two companies having already collaborated on the development of Political Risk Insurance solutions for carbon credit transactions.
Building on this partnership, Kita will expand its engagement with other Tokio Marine Group companies, particularly in Japan.
Notably, Kita is working with Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) to develop insurance products designed to protect carbon credit buyers from risks associated with carbon credit transactions, including the risk that prepaid credits are not delivered as agreed.
In parallel, Kita and TMNF will explore opportunities to provide carbon project risk assessment services to TMNF’s customers, leveraging satellite-based analytics to enhance risk evaluation and strengthen confidence in carbon markets.
According to Kita, TMNF aims to integrate these risk assessment capabilities with the comprehensive carbon project support services it provides through Nippon Koei, the engineering consulting company within the Tokio Marine Group.
These services include field assessments, project design, due diligence and project implementation support.
Together, the companies intend to develop a one-stop solution spanning the entire carbon project lifecycle. This would include rapid preliminary screening during the early stages of project evaluation, detailed investment assessments supported by field surveys, and long-term support for carbon credit generation and project delivery.
