CFC launches carbon delivery insurance policy (yes, you read that correctly).

Today is Thursday, April 11 2024.

A few days ago CFC launched a “groundbreaking” carbon delivery insurance policy.

But what is all that ? We quote below – ipsis litteris –  some parts from their website.

According to the March 19 press release, an “innovative new approach aimed to protect buyers and galvanise quality growth in the voluntary carbon market”.

Carbon Delivery Insurance is the first to cover both the physical and political risks faced by businesses purchasing voluntary carbon credits on a forward basis. Carbon Delivery Insurance covers 100% of the purchaser’s investment for non-delivery of carbon credits.

Additionally, CFC has built a sophisticated underwriting model that rates the carbon project itself rather than the policyholder. This makes the product easy to buy, and negates the need for lengthy, complex application forms and protracted discussions that take weeks to result in a quote. Rather, CFC can deliver same day quoting and binding for a buyer purchasing from one of over 300 carbon projects and counting.

Click here for the press release and at the image below to download, upon quick registration, the 8 pages report “An unmissable opportunity in the carbon market”. Accordingly, “More insurers than ever are realizing the potential value of carbon markets, as humanity strives to reduce its emissions in a bid to hit net zero. By facilitating risk transfer, insurers can effect positive change in a carbon market whose value could exceed $1 trillion by 2050.”

About the firm, their website indicates that in the 90’s CFC was one of the first companies in the world to sell cyber insurance policies online, then with the name ClickForCover.com. In those days, insurtechs were called dot.coms! In the 20 years since, the company changed its name to CFC and expanded its business, with technology remaining “at the heart of everything we do”. CFC is headquartered in London with offices in New York, San Francisco, Austin, Brussels, Brisbane and has currently 130k customers in over 90 countries.

CFC also indicated that it will deliver several insurance products related to distinct parts of the carbon value chain between now and 2030.

Insurance will be crucial in future carbon market strategies.