PriyaPatel
The carbon credit insurance market could reach an annual gross written premiums (GWP) of $1bn by 2030, according to a new report from Oxbow Partners and Kita. Industry leaders, including brokers like Aon, Howden, Marsh, and insurers such as AXA XL, CFC, Chaucer, and Fidelis, have expressed optimism about the growth prospects of the carbon credit insurance market. The report also explains the critical role of insurance in bolstering the carbon market, as efforts to decarbonize intensify worldwide. The report estimates that the carbon credit insurance market could reach $1bn of annual GWP by 2030, and $10-30bn GWP by 2050.
The report highlights the potential for profits and green investment in the carbon credit insurance market. Miqdaad Versi, Head of the Sustainability Practice at Oxbow Partners, said that the acceleration in the market is inevitable if the world is going to decarbonize, and that the future looks bright as new capacity providers are already entering the market.
The report also calls on the insurance industry to embrace carbon risk and play a significant role in managing climate change. James Kench, Head of Insurance at Kita, stated that insurance companies are uniquely positioned to help businesses navigate climate risk and that the carbon credit insurance market presents a vast new pool of risk with purpose.
