Originally published on: November 21, 2024
Trust is the cornerstone of the insurance industry, and transparency is crucial. Despite this, many insurance companies fall short in this area, says Dan Roberts, CEO of Nayms. In a recent Cointelegraph X Spaces interview, Roberts shed light on the industry’s opaque practices, particularly surrounding capital usage for claims.
Blockchain technology has emerged as a potential solution to verify capital in insurance. However, its benefits extend beyond that, offering real-time price discovery, enhanced liquidity, and efficiency. Nayms aims to transform insurance into a liquid and tradable asset, creating liquidity in the insurance market and providing capacity to insurers supporting digital assets.
Roberts explains the complex dynamics of risk transfer in the property and casualty insurance sector. He describes how insurance, reinsurance, and retrocession work together to diversify risk and reduce correlation, transferring risk up the chain ultimately to the capital markets.
Nayms specializes in providing a reinsurance layer to digital asset insurers. Roberts explains how this model allows buyers to customize coverage at the point of transaction, creating micro-insurance for specific needs. Nayms strives to build scalable capacity behind primary insurers, enabling them to offload risk and expand coverage.
The company tokenizes participation agreements, simplifying investment in insurance programs through tokens that can be traded between parties. By launching the NAYM token and establishing the Nayms Liquidity Facility, the company enhances liquidity depth and facilitates easier trading of insurance positions.
The NLF opens up insurance to a broader range of users, including those new to the asset class, by offering rewards for participation in governance decisions. Through partnerships with collateral providers and the development of its reinsurance product, Nayms continues to innovate in the insurance landscape.
Nayms is exploring layer-2 solutions and collaborations with various chains, aiming to streamline insurance programs and expand accessibility. By leveraging blockchain and tokenization, Nayms is revolutionizing the insurance industry, creating new opportunities for capital allocation and risk management.
Get ready to experience the future of insurance with Nayms and blockchain technology!
