Oka, the U.S.-based carbon-credit insurance carrier, has announced the launch of a new green credit insurance product, expanding its climate risk solutions beyond carbon markets. The move marks a significant step in the company’s mission to alleviate risks in sustainable finance projects and accelerate the global transition to net zero.

The new offering builds on Oka’s existing carbon insurance products and extends coverage to a broader range of climate-focused financing. The company says its expanded suite of solutions will support capital mobilization for renewable energy, clean industry development, and innovative decarbonisation projects.

Expanded Coverage Areas

Oka’s green credit insurance includes protection for:

• Transition project financing: Covering prepayments for projects in carbon-credit generation, clean-power generation, and green industry development.
• Green and blue financing: Insurance for buy-to-hold investments in green and blue bonds.
• Sustainability-linked financing: Covering loans tied to sustainability key performance indicators (KPIs).
• Letters of credit and counter-indemnities: Guaranteeing repayment for climate transition contracts.
• Loans to climate leaders: Supporting borrowers with strong environmental ratings or those directing proceeds towards climate-linked KPIs.

By extending its coverage to these areas, Oka hopes to replicate its success in the carbon markets across adjacent industries like clean energy and renewables.

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Focus on Innovation and Risk Management

Since it came into being, Oka has operated through Lloyd’s syndicate 1922, using sophisticated underwriting, AI-based data analysis, and deep industry expertise to manage risks. The firm’s goal is to reduce project costs and make sustainable investments more attractive to financiers.

Chris Slater, Founder and CEO of Oka, described the launch as a “natural evolution” for the company.

“In the renewables market as for the carbon market, there’s an urgent need for long-tenor risk cover to mobilise capital for innovative decarbonization projects and companies,” Slater said.

Strengthening the Leadership Team

Alongside the launch, Oka announced the appointment of James Morrell as Head of Credit Underwriting. With more than 18 years of experience in credit and political risk, Morrell previously worked at HDI Global Specialty SE and has also held senior roles at Beazley and Brit.

Commenting on his new role, Morrell said:

“Clients tell us they need certainty – in both policy terms and carrier expertise. Oka brings both to the table, coupled with a strong track record of supporting developers and lenders and driving innovation in the carbon markets. Through our expanded remit, we look forward to removing barriers to trade and investment to help drive progress towards a sustainable future.”

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With its expanded product suite and experienced leadership, Oka is positioning itself as a key enabler of the sustainable finance ecosystem, offering insurance solutions that encourage investment in the green economy.

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Source: Reinsurance News