Asta, the leading third-party managing agent at Lloyd’s, and Oka, the Carbon Insurance Company, announced that Lloyd’s has granted “in principle” approval for Oka syndicate-in-a-box (SIAB) 1922.
Oka Syndicate 1922, which aims to commence underwriting from January 2024, will introduce an insurance solution specifically designed to protect against buyer-side carbon credit risks, including financial, reputational, regulatory, and climate risks.
Ultimately, this will support the development of the voluntary carbon market (VCM) and facilitate investment, helping it achieve the growth rate required to scale the VCM to meet critical climate targets, the companies said.
They noted that the volume of carbon credit purchases has quadrupled over the past four years, with the market expected to grow exponentially as corporations make commitments to achieve net zero targets as a priority.
“With the market for carbon credits rapidly growing, our mission at Oka is to ensure every credit is insured. Entry to Lloyd’s provides us with access to the world’s leading insurance marketplace, enabling us to keep pace with this evolving sector and the market’s substantia license network to solve a global problem,” commented Chris Slater, founder and chief executive officer of Park City, Utah-based Oka.
“Our partnership with Asta has been invaluable, with their experience in guiding new Lloyd’s entrants, making the process seamless and swift. Through our syndicate, we want to help insure the world’s transition to net-zero,” Slater added.
“Oka has a diverse and experienced leadership team with a proven track record of building scale insurance businesses. Having identified a clear gap in the market, access to Lloyd’s will allow them to capitalize on this opportunity. Due to the ESG nature of the insurance offering, this product responds to environmental imperatives and supports the reputation of the Lloyd’s market on innovation,” according to Lorraine Harfitt, chief executive officer of London-headquartered Asta.
Asta Managing Agency Ltd. is the leading third-party managing agent at Lloyd’s and is responsible for 12 syndicates, five SIABs and one special purpose arrangement (SPA), with capacity under management in 2023 of more than £2.2 billion.
Source: Asta Managing Agency and Oka
Topics Excess Surplus Lloyd's
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