30 Jun Crypto Founders: Daniel Roberts, CEO, Nayms
Crypto insurance is a 270 billion dollar opportunity but to date roughly only 5% of the market is covered. Enter Nayms, a new crypto insurance marketplace that aims to service the other 95%. We spoke to co-founder and CEO Daniel Roberts about the problem he is solving.
“As the insurance market becomes increasingly knoweldgeable about the emerging risk class of digital assets, it is vital that the means of underwriting such risk is done so in a way that will scale as the crypto-currency market grows.”
Demand for digital asset insurance is strong, from custodians and exchanges to retail and institutional investors. All players are seeking some sort of cover whether for cold storage or more comprehensive cover. Nayms offers a marketplace to source capacity for brokers who represent these participants.
In practice a broker places a smart contract on the Nayms platform that is then collateralised by capital providers. Contracts are coded to include interesting characteristics such as tradability and instant settlement using loss triggers.
“The service tracks network activity in real time so you can appease many parties simultaneously whether that’s local brokers, regional brokers, underwriters, re-insurers, assets managers or the insured party – all stakeholders are immutably connected around this single contract of insurance.”
From humble beginnings
Nayms was born from a collaboration with Insurtech Gateway, a UK-based incubator and fund. The project started as a research piece on bridging institutional capital and cryptocurrency risk but quickly grew into a fully-fledged idea.
The company went on to acquire its regulatory licenses and will now spend 12 months working in a Sandbox with the Bermuda Monetary Authority. Dan explained that as leaders in the re-insurance space, Bermuda offered a great place from which to launch Nayms, attracting a special mention from the Premier.
What the future looks like
The Nayms beta launched on the Ethereum mainnet earlier this month with Breach Insured set to place the first contract in the coming weeks. Breach is part of the Nayms ‘Cohort 1’ that are trialing the tech manually at the moment. Cohort 2 is expected in Q4 and a full launch in 2021. Dan said,
“By that point our aim is to achieve self -serving distribution, brokers who are comfortable with the platform, and can use it autonomously to place contracts between buyers and sellers of this important area of risk”
You can find out more about Nayms here.