Kita introduces method for settling insurance claims using carbon credits

Kita , a carbon insurance specialist, has launched an insurance offering that allows clients to receive insurance claims in the form of carbon credits. This move is aimed at supporting high-integrity net-zero goals of businesses involved in carbon markets.

Key points:

• Kita’s new insurance offering lets clients opt for insurance claims to be paid in carbon credits.
• The option for carbon credit claims is available to clients who purchase Kita’s primary insurance product, Carbon Purchase Protection Cover. This policy protects buyers of carbon credits from under-delivery.
• Kita will work with Chaucer, its lead capacity provider, to review and process claims, offering replacement carbon credits as a payment option. Cash payment for eligible claims remains available.
• The replacement carbon credits for eligible claims will be drawn from Kita’s Carbon Supplier Pool, with Everland, Pachama, Vertree, and Respira being the initial members. These organizations provide carbon credits to the voluntary carbon market.

Kita’s approach aims to encourage the growth of high-integrity carbon projects and contribute to the advancement of carbon markets through the integration of insurance solutions.