Kita expands capacity by 450% to £22.5m/€22.5m, responding to growing global demand for carbon insurance solutions
Kita, the specialist carbon insurance company, is now authorised to insure transactions up to £22.5m/€22.5m in limit and up to 10 years in policy tenor.
Significant expansion of capacity highlights market demand for specialist carbon risk management solutions and positions Kita as one of the leading carbon risk experts.
The binder will continue to be led by Chaucer Group with continued support from Munich Re Specialty and RenaissanceRe, with Tokio Marine Kiln also joining for this expansion.
London, 26 March 2025 – Lloyd’s of London coverholder, Kita, announces significant increase in its underwriting capacity for 2025, as it secures £22.5/€22.5 million capacity for carbon credit risks across the globe.
The news marks a significant step in Kita’s growth and evidences the market’s recognition of insurance as a solution which aims to de-risk high-quality carbon projects. Furthermore, this announcement highlights the continued ambition and confidence of the capacity supporters in Kita to develop and underwrite emerging risks in the carbon markets.
Kita has grown its product offering over the past 48 months and now offers 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 a suite of risk assessment and monitoring services that provide insight and analysis to carbon market stakeholders.
Kita has authorisation to insure buyers/investors domiciled in the UK, US, Canada, EU/EEA, Switzerland, Singapore and Australia and continues to expand its jurisdictional scope.
A recent report, co-authored by Kita and specialist management consultancy, Oxbow Partners, estimates the total addressable market for carbon credit insurance to be around $1bn of annual Gross Written Premium (GWP) in 2030, rising to $10-30bn GWP by 2050.
“We are delighted to expand our capacity with Chaucer, Munich Re Specialty, RenaissanceRe and Tokio Marine Kiln. They are fantastic (re)insurance partners who recognise the value of Kita’s market-leading carbon risk expertise and share our firm belief in the value of insurance to support the de-risking of high-quality carbon projects. We are seeing more and more carbon market stakeholders embrace the key role that carbon insurance plays. Increasing our line size will help meet demand for risk management solutions that unlock the necessary financing to scale the sector.”
James Kench, Managing Director – Insurance, Kita
“Carbon is a key element of the climate equation. It is incumbent on the insurance industry to step up and create the risk management tools and build the risk transfer capacity that the carbon markets need to meet global climate targets. We feel fortunate to be working with capacity providers who share our perspective on insurance as a unique opportunity to enable investment that creates positive impact”
Natalia Dorfman, CEO and co-founder, Kita
Today’s announcement follows other milestones from the company, including their growing jurisdictional expansion, their most recent market offering, Carbon Political Risk Cover, and their pioneering ability to pay eligible claims in replacement carbon credits or cash.
Notes to editors
The Munich Re Specialty – Global Markets brand offers primary specialty insurance through Munich Re Syndicate Limited as managing agent of Syndicate 457, and its distribution network. Munich Re Specialty – Global Markets, Syndicate is the approved trading name of Munich Re Syndicate Limited, the Managing Agent of Syndicate 457.