TransZero and Kita Partner to Deliver Physical Climate Risk Quantification for the Global Carbon Insurance Market

Physical climate risk and resilience modeller TransZero today announced a strategic partnership with Kita, the carbon and natural capital insurance specialist.

LONDON, UNITED KINGDOM, April 2, 2026 /EINPresswire.com/ -- Leading physical climate risk and resilience modeller TransZero today announced a strategic partnership with Kita, the carbon and natural capital insurance specialist and a Lloyd’s of London Coverholder. The collaboration further strengthens Kita’s data-driven underwriting, pricing, and risk advisory capabilities within the rapidly evolving carbon insurance market.

The partnership will see Kita integrate TransZero’s forward-looking, location-level climate risk modelling platform, covering ten perils including wildfire, flood, windstorm, sea level rise, drought, subsidence, hail, and landslide, into its risk assessment and underwriting frameworks. What differentiates TransZero’s platform is not only its forward-looking approach across multiple climate scenarios, but also its ability to translate risk exposure into financial loss metrics, such as expected annual loss. The platform also incorporates adaptation modelling, enabling assessment of how resilience investments can reduce risk and generate returns over time.

For Kita, this strengthens how physical climate risk is incorporated into its underwriting. By translating risk exposure into financial loss metrics, Kita can directly link climate hazards to outcomes such as carbon reversals, revenue volatility, and buffer pool drawdowns. In parallel, the adaptation modelling allows Kita to assess how interventions such as fire management or hydrological controls can reduce expected losses and stabilise project delivery over time, supporting long-term project durability and insurance viability within carbon markets. For the insurer’s global clientele, this translates into more comprehensive risk assessments that incorporate a financial exposure dimension, incentivising robust project design and enabling more accurate pricing of insurance policies.

Together, the two firms aim to strengthen risk modelling and resilience assessment for carbon and natural capital projects globally, particularly as they operate in increasingly climate-exposed regions, enabling more resilient project design, more accurate risk pricing, and ultimately supporting the long-term scalability and credibility of the carbon markets.

TransZero Co-Founder, Dr Iain Willis said:
“I see this as a really exciting collaboration for both parties as well as the wider insurance industry. The ability to apply high-resolution physical climate risk models in assessing the wide variety of nature based solution (NBS) and carbon credit insurance schemes represents a natural evolution in risk management. The physical climate risks faced by carbon schemes are not theoretical—they are measurable, material and continue to evolve in a warming climate. It’s our pleasure to support Kita in embedding rigorous, science-based hazard modelling directly into their carbon insurance and advisory services.”

Paul Young, CTO and Co-Founder of Kita, added:
“Understanding the physical risks carbon projects face over their lifetime is a critical component of carbon insurance underwriting. TransZero’s forward-looking modelling approach translates physical risk exposure into financial metrics across multiple climate scenarios, enabling a clearer view of how these risks impact project outcomes. This capability allows us to actively structure risk—by pricing insurance more accurately, incentivising stronger project design, and ultimately improving the long-term reliability of carbon credits.”

The partnership reflects a broader shift within voluntary and compliance carbon markets toward enhanced risk modelling appraisal, transparency, and financial safeguards. As climate volatility increases, integrating physical climate analytics into financial risk management is becoming a cornerstone of credible carbon project development.

About TransZero - www.transzero.co.uk
TransZero is a physical risk modelling company providing global hazard and resilience quantification for multiple climate perils for both current day and future climate scenarios. Launched in September 2025, TransZero is at the forefront of ClimateTech, supporting global real estate, retail, asset management, insurance, and banking in assessing and managing climate risk exposure.

About Kita - https://www.kita.earth

Kita is the carbon and natural capital insurance specialist. Through our insurance products and risk advisory services, we help companies participate confidently in the growing market for carbon and natural capital assets, while upholding the rigorous risk management standards expected by stakeholders. With a diligent focus on delivery, transparency and governance, insurance unlocks the investment needed to scale high‑quality carbon removal and nature restoration solutions.

Kita is a Coverholder at Lloyd’s of London – the world’s leading specialist insurance and reinsurance marketplace. To learn more, visit www.kita.earth

Kita Earth Limited is authorised and regulated by the Financial Conduct Authority. The company is entered on the FCA register (www.fca.org.uk/register). Our Firm Reference Number is 998549.

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info@kita.earth

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