Lloyd’s of London grants in principle approval for ESG-focused syndicate

Carbon insurance company Oka has been granted in principle approval from Lloyd’s of London for a new syndicate, a statement released today (17 October 2023) said.

The business unit, called Oka Syndicate 1922, will be managed by Lloyd’s managing agent Asta and is set to commence underwriting from January 2024. 

It will introduce an insurance solution designed to provide protection against buyer-side carbon credit risks, including financial, reputational, regulatory and climate risks. 

Chris Slater, Oka founder and chief executive, said both his firm and Asta wanted to ”help insure the world’s transition to net zero”.

”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 licence network to solve a global problem,” he added.

”Our partnership with Asta has been invaluable, with their experience in guiding new Lloyd’s entrants making the process seamless and swift.”

Voluntary carbon market 

After the syndicate goes live, Oka and Asta hope it will support the development of the voluntary carbon market (VCM) by helping it achieve the growth rate required to meet climate targets.

The volume of carbon credit purchases has quadrupled over the past four years, with the market expected to grow as corporations make commitments to achieve net zero targets as a priority.

Lorraine Harfitt, chief executive of Asta, said: “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 capitalise 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.”