Carbon insurance company Oka continue its efforts to bring insurance coverage to what many consider a high risk segment – carbon markets.

In this instance the company is utilizing its Article 6 (the UN mechanism for creating a global carbon market) solution called Corresponding Adjustment Protect and introducing a lineslip for it.

A lineslip is an arrangement between a primary syndicate (or insurer) and secondary syndicates and/or insurance companies that grants the primary syndicate the authority to set rates and secure coverage on behalf of the secondary participants.

This particular lineslip creates insurance capacity through several Lloyd’s syndicates – Apollo and Hiscox – under the guidance of placing broker Guy Carpenter.

Chris Slater, Oka Founder & CEO, added, “Together with Guy Carpenter and this leading cohort of Lloyd’s syndicates, we’re excited to promote the success of carbon markets under compliance schemes, such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Developers need third-party assurances — such as Corresponding Adjustment Protect — to access the market, and buyers, to avoid unexpected regulatory and litigation risk. Supported by this lineslip, our dedicated policy coverage will help both parties navigate a new market with confidence.”

Corresponding Adjustment Protect is the first policy created to secure voluntary carbon credits in compliance markets. It protects project developers and their clients from the risk of losing credits under Article 6 if the host country does not make the necessary corresponding adjustments to the credits issued.

Led by Oka, this alliance underscores the insurance industry’s growing interest in global carbon markets and its commitment to building the infrastructure necessary for scaling them.

Hayley Budd, Innovation Class Lead at Apollo, commented, “We’re delighted to be supporting Oka to insure carbon markets, which represent both an exciting market opportunity and growing climate imperative. Besides being a Lloyd’s syndicate, Oka has been at the vanguard of building innovative solutions to complex risks in this space, making them a natural partner for us. Through this lineslip, we can provide the insurance capacity required to protect buyers and sellers and help scale climate solutions.”

Oka has also developed another carbon markets solution called Carbon Protect which is focused on offering financial coverage to buyers against unexpected and unavoidable risks that may occur after credits are issued, such as invalidation or reversal. This guarantees that each purchased credit consistently corresponds to one metric tonne of carbon removed from the atmosphere.

In March 2024 the company received $10 million in its latest funding round which followed Lloyd’s granting “in principle” approval for Oka’s syndicate-in-a-box (SIAB) 1922.

Read more: Oka Receives Lloyd’s In Principle Approval For A Carbon Credits Insurance Solution



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