Political Risk Insurance is a long-established insurance market, geared to help businesses mitigate and manage risks arising from the adverse actions - or inactions - of governments. The aim is to provide a more stable environment in which to do business, thus enabling greater investment and scale by cushioning the impact of unpredictable and potentially sizeable losses.
Political Risk Insurance
Insurance for Political/Host Country/CORSIA Risks
Political Risk Insurance is well placed to:
(i) help the carbon markets mitigate the risks associated with correspondingly adjusted credits; and
(ii) protect anyone investing in/operating in politically-uncertain environments
Why buy Political Risk Insurance?
What does Kita’s Political Risk Insurance cover:
Comprehensive insurance to protect against broad political and Article 6 uncertainties
Bespoke protection for cross-border investment: both pre- & post-issuance.
Worldwide coverage, excluding territories subject to international sanctions.
Why invest in Political Risk Insurance:
To mitigate the impacts of increasing political volatility and Article 6 immaturity risk, which could undermine investments.
To introduce a creditworthy wrapper, providing a backstop against loss.
To enable proactive strategies to derisk investment rationale.
Where can this insurance be utilised:
Worldwide, ex. territories subject to international sanctions
Who is Kita’s Political Risk Insurance applicable for:
All types of carbon projects
Project Developers
Investors
Lenders
Political Risk Insurance — What do we cover? What do we assess?
What do we cover?
Confiscation/Nationalisation
Carbon credit export ban
Revocation or dispute over carbon rights
Revocation of LoA (Letter of Authorisation/Approval)
Revocation of Corresponding Adjustment
Political Violence
Forced Abandonment
What do we assess?
Project’s LoA and investment contract
Traditional political risk
Host country carbon credits and emissions
NDC documentation
Article 6.2 context
