Oka launches compliance carbon credit insurance with Lloyd’s lineslip

Oka, The Carbon Insurance Company, has introduced a lineslip for its Article 6 insurance solution, Corresponding Adjustment Protect, designed to mitigate risks in voluntary carbon credits entering compliance markets.

This policy, underwritten by Lloyd’s Oka Syndicate 1922, protects carbon project developers and their clients against Article 6 revocation if a host country fails to apply a necessary corresponding adjustment to issued credits.

The new lineslip draws insurance capacity from Lloyd’s syndicates, including Apollo and Hiscox, facilitated through broker Guy Carpenter.

Oka explained that this move represents an expansion in insurance support for global carbon markets, reflecting the industry’s commitment to establishing infrastructure needed to scale these markets effectively.

Apollo’s Innovation Class lead, Hayley Budd, highlighted the significance of insuring carbon markets, noting that these markets are increasingly important both as a business opportunity and a response to climate imperatives.

“Besides being a Lloyd’s syndicate, Oka has been at the vanguard of building innovative solutions to complex risks in this space, making them a natural partner for us,” Budd said. “Through this lineslip, we can provide the insurance capacity required to protect buyers and sellers and help scale climate solutions.”

Chris Slater, founder and CEO of Oka, pointed to the value of collaboration with Guy Carpenter and the participating Lloyd’s syndicates in advancing compliance carbon markets, such as those governed by 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,” Slater said.

Oka, in collaboration with Asta, was granted “in principle” approval by Lloyd’s for Oka syndicate-in-a-box (SIAB) 1922 last year. Underwriting commenced in January 2024.

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