By Ryan Hewlett

March 26 - (The Insurer) - Carbon insurer Kita has lifted its underwriting capacity by 450% for 2025 in a move to meet market demand for specialist carbon risk management solutions.

Kita is now authorised to insure transactions up to 22.5 million pounds ($29 million) or 22.5 million ($24.3 million) euros in limit and up to 10 years in policy tenor.

The MGA’s 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.

The news marks a significant step in Kita’s growth and evidences the growing global demand for carbon insurance solutions.

“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,” said James Kench, managing director of insurance at Kita.

Kita has grown its product offering over the past 48 months and now offers four insurance policies, including carbon purchase protection cover for delivery risk and carbon political risk cover for political and host country risks.

The company is authorised to insure carbon credit buyers and investors domiciled in the UK, US, Canada, EU, EEA, Switzerland, Singapore and Australia. It also offers a suite of risk assessment and monitoring services that provide insight and analysis to carbon market stakeholders.

Kita recently released a report co-authored by management consultancy Oxbow Partners which estimated that the total addressable market for carbon credit insurance would reach $1 billion of annual GWP by 2030, and would rise to between $10 billion and $30 billion in GWP by 2050.