Cointelegraph has recently announced that Nayms, an on-chain insurance marketplace that connects brokers and underwriters with crypto capital providers, has joined the Cointelegraph Accelerator program. The insurance industry, which faces various challenges such as high costs, discerning customers, and fraud, has the potential to benefit greatly from blockchain technology.
Reports suggest that blockchain could create a $32.9 billion market for the insurance industry by 2031. The transparent and distributed nature of blockchain allows for a secure and interoperable repository of insurance-related information. Nayms has capitalized on this potential by creating a blockchain-based digital insurance marketplace.
Nayms simplifies the process of connecting capital providers and brokers by utilizing segregated accounts established by third-party sponsors to create tailored insurance solutions. Sponsors submit detailed business plans, which, once approved, lead to the issuance of participation tokens. These tokens represent a contractual interest in the assets and liabilities of a segregated account and are sold exclusively on Nayms’ matching market. Investors can fund these accounts with cryptocurrency, and the capital raised supports the underwriting of blockchain-specific risks. Insurance contracts are created using Nayms’ Policy Builder, and Nayms oversees the management of claims against these accounts.
By utilizing smart contracts, Nayms securely links capital providers to insurance risks, automating transactions while ensuring transparency and compliance.
Tokenization plays a crucial role in democratizing insurance, as it allows for easy entry and exit for investors and increases liquidity. Nayms specifically targets blockchain-specific risks, such as those associated with cryptocurrency exchanges, custodians, and DeFi smart contracts. By offering crypto-based policies, Nayms minimizes currency risk for blockchain and crypto businesses while providing traditional coverage types.
Nayms operates under the regulatory framework of the Bermuda Monetary Authority, holding licenses under the Digital Asset Business Act 2018 and the Insurance Act 1978. As a segregated accounts company, Nayms issues segregated accounts for different risk pools, ensuring precise risk management and operational efficiency.
The platform incorporates the NAYM governance token to align incentives among marketplace participants. This token incentivizes participation and governance within the platform and is distinct from participation tokens used for capitalization in insurance operations. The NAYM token offers benefits such as staking and voting on governance issues related to the Nayms Liquidity Facility, which provides primary capital and liquidity for the secondary market on the Nayms marketplace.
By utilizing blockchain tokenization, Nayms aims to bring liquidity to insurance as an asset class, allowing over $1 trillion of alternative capital in digital assets to access this risk. To learn more about Nayms and its innovative approach to insurance, visit their website.