- Kita, the carbon insurance specialist and Lloyd’s of London cover holder has launched its full-spectrum Active Risk Monitoring services for the carbon markets.
- Kita’s Active Risk Monitoring services help investors make informed decisions by providing a clear picture of project risks.
Kita, the carbon insurance specialist and Lloyd’s of London cover holder, has launched its full-spectrum Active Risk Monitoring services for the carbon markets.
The firm has been providing these services since March 2024 to select stakeholders and is now broadening its reach to a wider span of the market.
Kita will now be offering active risk monitoring services across all stages of the carbon lifecycle, providing project developers, buyers and investors with additional upfront due diligence, plus proactivity in ongoing risk management.
“Kita models risk in ex-ante projects daily as part of its insurance underwriting, which focuses on enabling investment into early-stage projects. Via this process, the business has collated a proprietary risk model, built on robust data and industry insights covering a wide variety of projects across the market,” a spokesperson explains.
Adding, “This data model is used in Kita’s Active Risk Monitoring services to assess projects on a comparative basis, and our near real-time monitoring ensures that the risk model is continuously adjusted to provide the most accurate and up-to-date analysis possible.”
Kita’s Active Risk Monitoring services help investors make informed decisions by providing a clear picture of project risks. Its range of services includes:
Risk Assessments: the firm provides objective and cost-effective evaluations of project risk, focusing on commercial, technical, and political factors.
By analysing thousands of data points, including market benchmarks and project-specific details, Kita helps buyers and investors choose the right projects. These assessments can also help developers showcase their strong risk management to attract investors.
Portfolio Assessments: For companies with existing carbon credit portfolios, Kita’s offering includes ongoing risk assessment and reporting. It also analyses potential losses and shortfalls at the portfolio level, as well as sub-risk and carbon-type categories.
Ongoing Health Checks: Projects insured by Kita will also receive regular “health checks” to ensure continued performance and quickly identify any issues.
This demonstrates how insurance companies can provide cost-effective risk management that supports high-performing projects, Kita noted.
Natalia Dorfman, CEO and Co-Founder of Kita, said, “One of the key benefits of insurance in any market is its ability to not just protect against things going wrong but to use underwriting data to provide proactive risk management to help things go right.
“Kita is delighted to bring this cost-effective risk management to the carbon markets in the form of our Active Risk Monitoring services. By offering an additional insurability lens on due diligence and quality assessment, plus proactivity in ongoing risk management to mitigate risks before they occur, the provision of Kita’s Active Risk Monitoring services can help channel significant global capital towards high-quality carbon projects.”
Paul Young, CTO and Co-Founder, Kita, commented, “In carbon projects, the standalone nature of a project’s quality isn’t enough. It is important to understand how that project compares against its peers.
“Using market benchmarks and our comprehensive proprietary data sets gleaned from our long-standing insurance work with ex-ante projects, we can do just this and we look forward to bringing these services to a wider range of market participants.”