Nayms Joins Cointelegraph Accelerator, Tokenizing RWAs in the $2.7T Insurance Industry

Nayms, an on-chain insurance marketplace that connects brokers and underwriters with crypto capital providers, has recently joined the Accelerator program. The insurance industry is a significant market that can greatly benefit from the use of blockchain technology. With various challenges such as high costs, discerning customers, and fraudulent activities, this sector has immense potential for disruption through blockchain.

Recent reports suggest that blockchain has the potential to create a $32.9 billion market for the insurance industry by 2031. The transparent and distributed nature of this technology allows for the creation of a secure and interoperable repository of insurance information. Nayms was born out of this idea and serves as a blockchain-based digital insurance marketplace.

Nayms acts as a facilitator between capital providers and brokers by utilizing segregated accounts managed by third-party sponsors to offer tailored insurance solutions. Participating sponsors submit detailed business plans, which, upon approval, lead to the issuance of participation tokens. These tokens represent a contractual interest in the assets and liabilities of a segregated account and are exclusively sold in Nayms’ matching market, allowing investors to fund the accounts using cryptocurrencies.

The capital raised from investors supports the underwriting of blockchain-specific risks. Insurance contracts are crafted using Nayms’ Policy Builder, and the management of claims against these accounts is overseen by Nayms, including through designated third-party administrators. This streamlines the process, securely connecting capital providers to insurance risks through smart contracts, ensuring transparency and compliance.

Tokenization plays a crucial role in democratizing insurance by enabling easy entry and exit for investors, increasing liquidity, and expanding participation. Nayms focuses on blockchain-specific risks, such as those associated with cryptocurrency exchanges, custodians, and DeFi smart contracts, which represent billions of dollars in uninsured value. By offering crypto-based policies, Nayms minimizes currency risk for blockchain and crypto businesses while providing traditional forms of coverage, such as directors and officers insurance and errors and omissions insurance.

Nayms operates under the regulatory framework of the Bermuda Monetary Authority (BMA), which was among the first to implement regulations for digital assets. The company holds licenses under the Digital Asset Business Act 2018 and the Insurance Act 1978. As a segregated accounts company, Nayms issues separate accounts for different risk pools, ensuring precise risk management and operational efficiency.

The NAYM governance token is integrated into the platform, aligning incentives among marketplace participants and enhancing functionality through rewards tied to marketplace performance. This token allows for staking and voting on governance issues related to the Nayms Liquidity Facility (NLF), which provides primary capital and liquidity for the secondary market on the Nayms platform.

Nayms combines decentralized finance (DeFi) elements with traditional regulatory compliance, creating a secure and innovative insurance marketplace. Through blockchain tokenization, Nayms aims to bring liquidity to insurance as an asset class, enabling over $1 trillion of alternative capital in digital assets to access this risk.