While tokenization holds significant potential to transform insurance and investments in real-world assets, Nayms is working to ensure this transformation is safe, efficient and inclusive.
Often viewed as outdated and cumbersome, the insurance industry has made strides in adopting data analytics over the past decade, significantly reducing claims processing times.
Technologies like artificial intelligence (AI) and machine learning (ML) have proven their effectiveness in customer service chatbots, predictive maintenance and fraud detection applications.
Despite these advancements, traditional insurance markets still lag. With expensive back-office functions, manual accounting and value exchange between multiple parties and, in some cases, an industry continuing to rely on wet-ink stamps on paper, the industry shows consistent resistance to change.
Blockchain technology offers a promising solution, bringing full transparency and traceability to the industry. It also enables greater automation in operations such as claim payments and policy issuance through smart contracts — self-executing blockchain-based codes.
Furthermore, implementing use cases for real-world assets (RWA), such as tokenizing insurance risk, can unlock liquidity potential and increase market efficiency on both the supply and demand sides.
Tokenizing insurance risk
A marketplace for crypto-native insurance, Nayms brings RWAs into the digital world to boost liquidity and bridge the gap between blockchain and tangible assets such as insurance. By tokenizing insurance risk, the platform aims to remove the entry barrier for capital providers to support the blockchain-based insurance industry.
At its core, Nayms offers a digital platform for creating insurance programs, raising capital, trading, managing risks and facilitating transactions related to premiums and claims. The platform's goal is to tokenize insurance capital pools and syndicates, bringing liquidity to insurance as an asset class and enabling alternative capital from digital assets to enter the market.
Users can create insurance programs, underwrite risks and manage payment processes. Source: Nayms
From setting limits and premiums to managing claims and reserves, Nayms conducts the entire insurance process with mainly stablecoins but with compatibility with other cryptocurrencies such as Ether (ETH), Bitcoin (BTC). While this approach reduces foreign exchange risk by matching assets with liabilities, it also promotes growth and stability in the blockchain ecosystem by aligning supply and demand.
The platform seeks to make offering insurance as straightforward as investing in it, valuing transformation in the accessibility and management of insurance products. With Nayms, insurers, insureds, intermediaries and investors gain benefits specific to blockchain technology, including improved efficiency, immutability, transparency and composability. Users have access to a resilient and dynamic insurance environment that combines the advantages of both centralized custody and decentralized finance (DeFi).
With a low correlation to the broader market, insurance is particularly attractive as an asset class for users seeking stability and low volatility. Nayms enhances this appeal by using the USDM token, a stablecoin pegged to the U.S. dollar offered by Mountain Protocol, as collateral to increase potential returns on capital. Mountain Protocol is known for integrating traditional finance (TradFi) with DeFi principles.
Nayms offers an onchain approach for efficient capital deployment, creating more opportunities in RWAs. Source: Nayms
Nayms’ commitment to strict regulations and ongoing governance distinguishes it from other insurance platforms. All transactions on the platform are subject to stringent rules, providing a safe and reliable environment for capitalization and risk transfer.
The company operates under the supervision of the Bermuda Monetary Authority, a tech-forward regulator in Bermuda, the world’s third-largest insurance jurisdiction.
Injecting capital into the blockchain insurance market
Nayms operates on the Ethereum blockchain and Coinbase’s layer-2 platform, Base. In addition to launching new insurance pools, Nayms plans to announce a multiparty partnership with a feeder fund to inject substantial capital into the market. The combined capital demand from leading brokers amounts to billions of dollars, with an expectation that this is just the tip of the iceberg.
The platform is also set to launch its governance token, NAYM, which supports the platform by aligning incentives among participants. The token will play a crucial role in the Nayms Liquidity Facility, which backs insurance pools and collaborates with market makers to provide liquidity and rewards to tokenholders.
As blockchain technology matures, Nayms aims to be well-positioned in RWA tokenization, offering innovative insurance solutions and leveraging smart contracts for efficient processes.
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