POLITICAL RISK SUITE

Political Risk Insurance

Protection against political, host country, or other corresponding adjustments related risks

Political Risk Insurance protects carbon and natural capital stakeholders against specified losses arising from adverse government action or inaction, helping to reduce political uncertainty and support cross-border investment.

Coverage may include expropriation, deprivation of assets or rights (including through export restrictions), currency inconvertibility, political violence, forced abandonment, forced divestiture, selective discrimination and arbitration award default.

Why buy Political Risk Insurance?

Protect against government action

Covers specified political and host-country events that may undermine a project or a transaction.

Supports cross-border investment

Provides a creditworthy backstop for debt and equity investments in markets exposed to political risk.

Enable proactive participation

Gives developers, investors and lenders greater confidence to operate across jurisdictions.

How the policy impacts the project?

Financial benefit

Protection against potentially significant losses caused by covered political events.

Operational benefit

Greater certainty when developing, financing, or purchasing from projects in exposed markets.

Strategic benefit

Broader access to international carbon and natural capital opportunities with structured risk mitigation.

COMPETITIVE DIFFERENTIATORS

  • Only carbon insurer offering traditional political risk insurance, alongside carbon-specific political perils

  • Political risk specialist / underwriters in our team

KEY USE CASES

  • Cross-border debt or equity investments in host countries where investors are exposed to political risk

  • Projects requiring a Letter of Authorisation (LoA) and/or Corresponding Adjustments to access specific sales channels (e.g. Article 6 transactions, Singapore carbon tax), where the LoA is legally binding, enforceable and includes an arbitration mechanism. For CORSIA-related transactions, see our separate CORSIA Insurance policy

Want to explore how Kita’s Non-Permanence Risk Insurance can benefit your project in its critical early stages?