Insurtech Nayms Ecosystems has opened an office in Bermuda.
This follows Nayms gaining both Digital Asset Business and Innovative General Business Insurer licenses from the Bermuda Monetary Authority.
In addition, Nayms will be conducting trials over a 12 month sandbox period.
It believes its smart insurance contracts can be applied to facilitate the underwriting of digital asset risk and to provide a liquid market for ILS trading.
Nayms chose Bermuda due to its strong ILD market, as well as progressive legislation and regulation for digital asset businesses.
The insurtech is a collaboration between co-founder and CEO Daniel Roberts and incubator Insurtech Gateway.
Insurtech Gateway CEO Richard Chattock said: “We believe in the power of new technology and fresh thinking to solve old problems. Well done to the Bermuda Monetary Authority for seeing the need for a transparent trading environment for ILS contracts and paving the way for this exciting pilot. Nayms is facilitating a vital stage in the development of the insurance industry as a whole to provide liquidity for investors and insurers.”
David Burt, Premier at Bermuda Monetary Authority, said: “Nayms represents a promising blend of digital assets and insurance, which showcases what the future of insurance looks like.
“Bermuda has taken great strides to position itself as an attractive domicile for players like Nayms and it is exciting to see the kinds of new ideas that are being developed. The ability to create shared digital rules around traditional insurance contracts are a game changer for the industry. They allow for increased efficiency and greater market opportunity which ensures Bermuda continues to play a leading role in the insurance linked securities market.
“We look forward to welcoming more innovators like Nayms who are showcasing the way digital assets will reshape the core infrastructure of traditional financial services.”
It began as a project exploring the problem of sourcing cryptocurrency capacity to cover losses in crypto. Nayms is now a solution that grew out of that and considers itself a truly digital contract of insurance.
The platform can be applied to the ILS market due to the liquidity issues present in the sector.