Kita, a London-based specialist in carbon insurance, has significantly increased its underwriting capacity to £22.5m.
The company secured this enhanced capacity through continued support from major (re)insurance partners including Chaucer Group, Munich Re Specialty, and RenaissanceRe, with Tokio Marine Kiln joining the panel as part of this latest expansion.
Founded to address the emerging risks in voluntary carbon markets, Kita offers insurance solutions specifically tailored to high-quality carbon projects.
Its coverage products aim to de-risk carbon transactions and unlock capital for climate-positive initiatives, establishing it as a pivotal enabler in sustainable finance.
With this expanded capacity, Kita is now authorised to insure transactions up to £22.5m/€22.5m with a policy tenor of up to 10 years.
The company plans to use the increased limit to meet growing global demand, particularly from investors and carbon credit buyers in the UK, US, Canada, EU/EEA, Switzerland, Singapore and Australia, while continuing to expand into new jurisdictions.
Over the past four years, Kita has diversified its offering to include four bespoke insurance policies, such as Carbon Purchase Protection Cover (CPPC) for delivery risk and Carbon Political Risk Cover (CPRC) for geopolitical risks.
It also provides advanced risk monitoring and assessment services for stakeholders in the voluntary carbon market.
This latest move reflects the rising recognition of insurance as a vital tool in de-risking carbon projects.
A recent study co-authored by Kita and Oxbow Partners projects the total addressable market for carbon credit insurance to hit $1bn in gross written premium (GWP) by 2030, with long-term estimates reaching between $10bn and $30bn GWP by 2050.
“We are delighted to expand our capacity with Chaucer, Munich Re Specialty, RenaissanceRe and Tokio Marine Kiln,” said James Kench, Managing Director – Insurance at Kita. “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.”
CEO and co-founder Natalia Dorfman added, “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.”
Today’s announcement builds on previous milestones, including the recent launch of the CPRC product, the company’s growing jurisdictional reach, and its innovative ability to pay eligible claims in either replacement carbon credits or cash.
Copyright © 2025 InsurTech Analyst
