Specialist insurance provider CFC has today announced its entry in the carbon insurance market, launching its first policy designed to cover both the physical and political risks faced by businesses purchasing voluntary carbon credits on a forward basis.
CFC’s Carbon Delivery Insurance covers 100% of the purchaser’s investment for non-delivery of carbon credits.
The insurer's underwriting model rates the carbon project itself rather than the policyholder, negating the need for lengthy, complex application forms and protracted discussions that can take weeks to result in a quote. Instead, CFC promises same day quote and bind for a buyer purchasing from one of over 300 carbon projects and counting.
“Insurance is the mechanism by which all parties involved in the voluntary carbon market can collaborate in their decarbonisation projects with full accountability. By facilitating risk transfer, we believe that insurers can drive positive change while getting ahead in a market whose value could exceed US$1trn by 2050,” said George Beattie (pictured), head of innovation at CFC. “The introduction of our Carbon Delivery Insurance product represents a further step forward by the industry to protect buyers and galvanise quality growth in this market, empowering market participants to overcome its inherent risks.”
In addition to launching Carbon Delivery Insurance through its traditional broker distribution channel, CFC has also partnered with IncubEx to deliver API-based distribution of CFC’s carbon insurance products.
Neil Eckert, chairman at IncubEx, commented: “IncubEx recognises the role that the insurance markets have to play to take the carbon markets to scale. We have been delighted to support insurers in the market, such as CFC, who demonstrate the willingness and leadership to develop new products which will either protect and scale investments in nature and biodiversity, or will support the removal of carbon to tackle climate risk. CFC has a strong track record of innovation, underwriting expertise and distribution partnerships and will be a very welcome addition to the industry’s offerings to take the carbon market to scale.”
Image: A vertical view of the process components, fermenters and biogas storage tanks of an agricultural biogas plant.
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