Insurance
Home›Insurance›Industry & Deals›Tokio Marine expands partnership with carbon insurer K…
Tokio Marine expands partnership with carbon insurer Kita after investment
The tie-up includes work on insurance products to protect carbon credit buyers against non delivery of prepaid credits, plus satellite based project risk assessment services.
Tokio Marine Group has made a strategic investment in Kita, a specialist carbon insurer and Lloyd’s of London coverholder, setting up plans to broaden their collaboration across more of the Tokio Marine group.
According to Reinsurance News, the companies say the expanded partnership builds on prior work with Tokio Marine Kiln, including the development of Political Risk Insurance solutions for carbon credit transactions.
Building on that relationship, Kita plans to deepen engagement with additional Tokio Marine group companies, particularly in Japan. The initiative includes Kita working with Tokio Marine & Nichido Fire Insurance Co., Ltd., or TMNF, to develop insurance products aimed at protecting carbon credit buyers from risks tied to carbon credit deals, including the risk that prepaid credits are not delivered as agreed.
Kita and TMNF also plan to explore carbon project risk assessment services for TMNF customers, using satellite based analytics to improve risk evaluation. The companies describe an end to end approach that would combine early project screening, investment assessments backed by field surveys, and long term support for carbon credit generation and delivery, with Tokio Marine using Nippon Koei to provide engineering and project lifecycle services.