Carbon insurance provider Oka has launched a lineslip for its Article 6 insurance product, Corresponding Adjustment Protect.
This lineslip, facilitated by Guy Carpenter, a placing broker, aims to introduce additional insurance capacity from prominent Lloyd’s syndicates including Apollo and Hiscox.
Corresponding Adjustment Protect, said to be the world’s first policy for voluntary carbon credits traded into compliance markets, aims to shield project developers and their customers from the risk of Article 6 revocation.
This risk arises if the host country fails to apply the necessary corresponding adjustment to the issued credits. The policy is underwritten by Lloyd’s Oka Syndicate 1922.
Oka founder and CEO Chris Slater said: “Together with Guy Carpenter and this leading cohort of Lloyd’s syndicates, we are 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.”
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By GlobalDataThe Corresponding Adjustment Protect insurance policy is available to certain eligible owners of carbon credits in locations where the Carbon Insurance Agency is licenced as a surplus lines insurance producer.
The eligibility for this policy is determined based on specific underwriting criteria, and coverage is contingent on the terms and conditions of the applicable policy.
The Carbon Insurance Agency has the authority to enter insurance contracts on behalf of the Lloyd’s underwriting members of Oka Syndicate 1922, which is affiliated with the Carbon Insurance Agency, and managed by Asta Managing Agency, a managing agent at Lloyd’s.
In June this year, Oka entered the compliance carbon market with the Corresponding Adjustment Protect solution.