$2.7T Total Insurance Industry Connected to RWAs: Nayms Joins Cointelegraph Accelerator
Cointelegraph has announced that Nimes, 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 huge market that could benefit from the blockchain revolution. Faced with many challenges, including costs, savvy customers and fraud, the insurance sector has great potential for blockchain-powered disruption.
Blockchain's potential to transform insurance
According to reports, blockchain could pave the way for a $32.9 billion market in the insurance world by 2031. The distributed and transparent nature of the technology makes insurance-related data repositories comprehensive, reliable and interoperable. This is where the idea of a blockchain-based digital insurance marketplace comes to life in Nams.
Nayms facilitates relationships between capital providers and brokers using accounts established by third-party sponsors to develop specific insurance solutions. Sponsors submit detailed business plans, which, upon approval, result in the issuance of participation tokens.
Participation tokens represent a contractual interest in the assets and liabilities of a separate account and are sold exclusively on the Nyms related market, allowing investors to fund the account in crypto. The capital raised will support the underwriting of blockchain-based risks for insurance contracts created using Naims' Policy Builder. Nayms oversees the management of claims on these accounts, through designated third-party administrators, ensuring compliance with underwriting guidelines and guidelines.
Nayms simplifies the process, securely connecting capital providers to insurance risks through smart contracts, automating transactions while maintaining transparency and compliance.
Democratization of insurance
Tokens facilitate easy entry and exit for investors, increasing liquidity and allowing a wider base of participants to share in the risks and rewards. Additionally, Nayms will target blockchain-based risks, such as those related to cryptocurrency exchanges, custodians, and defi smart contracts, which account for billions in uninsured value.
Offering crypto-based policies reduces currency risk for blockchain and crypto businesses, as well as insures directors and officers against management-related liabilities and errors and professional errors.
Nimes operates under the regulatory framework of the Bermuda Monetary Authority (BMA), Bermuda's financial regulator, which is one of the first jurisdictions to implement a regulatory framework for digital assets. Nimes holds an IIGB license under both the Digital Assets Trading Act 2018 and the Insurance Act 1978. Registered as a segregation company, Nayms uses a legal structure to issue segregated accounts for different risk pools – each of which is hedged against the others. – Allowing for proper risk management and operational efficiency.
The platform integrates the NAYM Management Token to coordinate incentives among marketplace participants, linking rewards to marketplace performance and enhancing the functionality of the ecosystem. While the token promotes participation and governance within the platform, it is different from participation tokens used to capitalize on insurance operations.
The NAYM token provides benefits such as voting 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. The model allows Nayms to combine decentralized finance (DeFi) elements with traditional regulatory compliance, ensuring a safe and innovative insurance marketplace.
Using blockchain tokenization, Nimes is working with more than 20 partners and a global team that aims to bring insurance as an asset class, allowing for more than $1 trillion of alternative capital in digital assets to access this risk.
