Cointelegraph Accelerator6 hours ago$2.7T general insurance industry meets tokenized RWAs: Nayms joins Cointelegraph AcceleratorNayms, a blockchain-based tokenized insurance marketplace, has become the latest participant of Cointelegraph Accelerator.8505 Total views24 Total sharesListen to article 0:00CT AcceleratorOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCointelegraph has announced that Nayms, an on-chain insurance marketplace that matches brokers and underwriters with crypto capital providers, has joined the Cointelegraph Accelerator program.
The insurance industry is a major market that can benefit from the blockchain revolution. Faced with many challenges, including costs, discerning customers and fraud, the insurance sector has immense potential for a blockchain-powered disruption.Blockchain’s potential to revolutionize insurance
According to reports, blockchain can pave the way for a $32.9 billion market for the insurance world by 2031. The distributed and transparent nature of the technology enables a comprehensive, secure and interoperable repository of insurance-related information. This is where the idea of a blockchain-based digital insurance marketplace came to life in Nayms.
Nayms facilitates the connection between capital providers and brokers by utilizing segregated accounts established by third-party Sponsors to tailor specific insurance solutions. Sponsors submit detailed business plans, which, upon approval, lead to the issuance of participation tokens.
Participation tokens represent a contractual interest in the assets and liabilities of a segregated account and are sold only in Nayms’ matching market, allowing investors to fund the accounts with crypto. The capital raised supports the underwriting of blockchain-specific risks, with insurance contracts crafted using Nayms’ Policy Builder. Nayms oversees the management of claims against these accounts, including via designated third-party administrators, ensuring adherence to underwriting guidelines and policy wordings.
Nayms streamlines the process, securely linking capital providers to insurance risks via smart contracts, which automate transactions while maintaining transparency and compliance.Tokenization to democratize insurance
Tokenization facilitates easy entry and exit for investors, increasing liquidity and enabling a broader base of participants to share in the risk and rewards. Additionally, Nayms targets blockchain-specific risks, such as those associated with cryptocurrency exchanges, custodians and DeFi smart contracts, which represent billions in uninsured value.
Offering crypto-based policies minimizes currency risk for blockchain and crypto businesses while providing traditional coverage types like directors and officers against governance-related liabilities and errors and omissions insurance for professional mistakes.
Nayms operates under the regulatory framework of the Bermuda Monetary Authority (BMA), the financial watchdog in Bermuda, which was one of the first places to implement a regulatory framework for digital assets. Nayms holds both a Class F license under the Digital Asset Business Act 2018 and a Class IIGB license under the Insurance Act 1978. Registered as a segregated accounts company, Nayms utilizes the legal structure to issue segregated accounts for different risk pools — each insulated from others — allowing for precise risk management and operational efficiency.
The platform integrates the NAYM governance token to align incentives among marketplace participants, enhancing the ecosystem’s functionality by linking rewards to marketplace performance through staking. While the token incentivizes participation and governance within the platform, it’s distinct from participation tokens used for capitalization in insurance operations.
NAYM token offers benefits like staking and voting on governance issues related to the Nayms Liquidity Facility (NLF), which provides primary capital to and liquidity for the secondary market on the Nayms marketplace. The model allows Nayms to blend decentralized finance (DeFi) elements with traditional regulatory compliance, ensuring a secure and innovative insurance marketplace.
Using blockchain tokenization, Nayms is working with over 20 partners and a global team with the aim of bringing liquidity to insurance as an asset class, enabling over $1 trillion of alternative capital in digital assets to access this risk.Learn more about Nayms# Blockchain# Cryptocurrencies# Business# Marketplace# Insurance# Tokens# Bermuda# Cointelegraph AcceleratorAdd reactionRead moreCrypto exchange insurance funds surge more than $1B amid bull marketTrader turns $13K into $2M within 1 hour as memecoin frenzy continuesBIS and 7 central banks to explore asset tokenization through Project Agora