Embarking on the heels of a successful launch of its first investment opportunities, Nayms remains committed to deploying emerging technologies to reshape the insurance industry. The first product to go live on Base will be an Industry Loss Warranty (ILW) contract, reinsuring against certain weather-related catastrophic events in Florida. Within a Bermuda-regulated segregated account structure, institutional investors can earn yield on their capital, targeting mid-high teen returns, paid by (re)insurance premiums by real (re)insureds who need their risk covered. For early investors, the yield is complemented by an additional reward of NAYM issued tokens equivalent to up to 15% of invested capital.
As the insurance industry evolves, tokenization offers a unique opportunity for institutional investors to diversify their investment portfolios and capitalize on the growth of traditional private market asset classes. Nayms’ opportunities offer investments into (re)insurance for property and casualty (P&C) risks like Cyber, Errors and Omissions, Directors and Officers coverage, crime/specie and various Industry Loss Warranty products. This exposure is typically only available to pension funds, private equity funds, and other major institutional investors. Nayms is making this exposure available to all qualified investors through tokenization, accessible in their wallets.
Some of the benefits of tokenized (re)insurance exposure for qualified investors include:
- Diversification of returns from the broader crypto market
- Access to historically hard to access private markets exposure, now in a tokenized wrapper
- Access to high yield returns with liquidity and low volatility
- Safety and security of the decentralized Ethereum network but at a low cost, faster settlement time of the Base L2
- Fast user onboarding through KYC automation utilizing verified identity standards of Ethereum Attestation Service (EAS) built into open sourced identity on ethereum
It’s time to bring institutional investors the benefits of Web3 technology powering their traditional asset class investment options. Interested users can learn more by visiting Nayms and connecting their self-hosted wallet on the Base network.
“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,” stated Nayms Co-Founder and CTO, Ted Georgas.
The ILW market is a vital component of the global catastrophe reinsurance market, a market generating over $300 billion in annual renewal premiums. This market offers substantial opportunities for insurers, insureds, and investors alike.
Nayms’ ILW introduces a novel approach, safeguarding buyers against the peril of named windstorms in Florida. To trigger indemnification, two independent named windstorms in Florida must each separately cause damage exceeding $10 billion to the state’s insured property during the 2024 in-force period. Nayms’ innovation lies in the use of USD Coin (USDC) as collateral within the segregated account on its independently audited Ethereum smart contract. This collateral is further secured through innovative mechanisms, including a digital multi-signature process, enhancing transparency and operational efficiency.
Nayms is the world’s leading, fully regulated marketplace for on-chain insurance. They are paving the way in providing a new digital asset risk market that allows regulated brokers and underwriters to find digital asset capital providers to share in the premium and liability covering digital asset risk. Nayms’ traceable smart contract is built on a trustless system, meaning insurance brokers can place a contract between market participants in a limitless number of areas and share in the future value of such open trade.
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Originally published at https://www.prnewswire.com/news-releases/nayms-launches-the-first-institutional-tokenized-reinsurance-marketplace-on-base-announcing-next-investment-opportunity-302032078.html
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