Cointelegraph has recently announced that Nayms, a marketplace for insurance on the blockchain, has joined the Cointelegraph Accelerator program. The insurance industry is facing various challenges such as high costs, discerning customers, and fraud, making it an ideal candidate for disruption through blockchain technology.
Blockchain has the potential to revolutionize the insurance sector, with reports suggesting that it could create a $32.9 billion market by 2031. The distributed and transparent 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 acts as a facilitator between capital providers and brokers by utilizing segregated accounts established by third-party sponsors. These 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 sold exclusively on Nayms’ matching market, allowing investors to fund the accounts with cryptocurrency. The capital raised supports the underwriting of blockchain-specific risks, and insurance contracts are crafted using Nayms’ Policy Builder. Nayms also oversees the management of claims against these accounts to ensure compliance with underwriting guidelines and policy wordings.
Nayms streamlines the process by securely linking capital providers to insurance risks through smart contracts, which automate transactions while maintaining transparency and compliance.
Tokenization plays a key role in democratizing insurance by enabling easy entry and exit for investors, increasing liquidity, and allowing a broader base of participants to share in the risks and rewards. Nayms focuses on blockchain-specific risks, such as those associated with cryptocurrency exchanges, custodians, and DeFi smart contracts, which represent substantial uninsured value. 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 (BMA), which was one of the first to implement regulations for digital assets. Nayms holds licenses under the Digital Asset Business Act 2018 and the Insurance Act 1978, and it utilizes a segregated accounts structure to issue different risk pools, ensuring precise risk management and operational efficiency.
The platform integrates the NAYM governance token to align incentives among marketplace participants and enhance functionality through staking. The NAYM token allows for benefits such as 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 marketplace. This combination of decentralized finance elements with traditional regulatory compliance ensures a secure and innovative insurance marketplace.
Through 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. With over 20 partners and a global team, Nayms is working towards achieving this goal.
To learn more about Nayms, visit their website.