Nayms, the leading blockchain-based marketplace for alternative risk transfer and capitalization, has announced its successful launch on Base, a secure and low-cost Ethereum layer-2 solution. This collaboration aims to provide investors with streamlined access to tokenized (re)insurance opportunities, revolutionizing the insurance industry by leveraging blockchain technology.
Building on the success of its initial investment offerings, Nayms continues to innovate in reshaping the insurance landscape. The first product launched on Base is an Industry Loss Warranty (ILW) contract, specifically reinsuring against weather-related catastrophic events in Florida. Institutional investors can now earn yield on their capital within a Bermuda-regulated segregated account structure. The target returns range from mid to high teens, paid through (re)insurance premiums by real (re)insureds seeking risk coverage. Early investors can also enjoy an additional reward of NAYM tokens, equivalent to up to 15% of their invested capital.
Tokenization emerges as a pivotal element in the evolving insurance sector, providing institutional investors with a unique avenue to diversify their portfolios. Nayms’ tokenized offerings span (re)insurance for property and casualty (P&C) risks, including Cyber, Errors and Omissions, Directors and Officers coverage, crime/specie, and various Industry Loss Warranty products. This level of exposure, traditionally limited to major institutional investors, is now accessible to all qualified investors through tokenization.
Key benefits of tokenized (re)insurance exposure for qualified investors include diversification of returns from the broader crypto market, access to historically challenging private markets now in a tokenized wrapper, high-yield returns with liquidity and low volatility, and the safety and security of the decentralized Ethereum network at a low cost, with faster settlement times through Base Layer 2.
Nayms’ Co-Founder and CTO, Ted Georgas, expressed enthusiasm about the Base launch, stating, “We are excited to be launching on Base, our first Ethereum Layer 2 network. Our deployment was seamless as it is fully EVM compliant, and we look forward to leveraging the reduced fees and easy onramp that Base provides.”
The ILW market targeted by Nayms is a crucial segment of the global catastrophe reinsurance market, generating over $300 billion in annual renewal premiums. Nayms’ ILW introduces an innovative approach by safeguarding buyers against named windstorms in Florida, requiring two independent storms to each cause damage exceeding $10 billion to trigger indemnification during the 2024 in-force period. The use of USD Coin (USDC) as collateral within an independently audited Ethereum smart contract enhances transparency and operational efficiency.
Nayms is a fully regulated marketplace for on-chain insurance, pioneering a new digital asset risk market. Regulated brokers and underwriters can connect with digital asset capital providers to share in premiums and liabilities covering digital asset risk. Nayms’ traceable smart contract operates on a trustless system, enabling insurance brokers to place contracts between market participants across various sectors and share in the future value of open trade.
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