A Peek Behind the Scenes at Nayms

Nayms offers qualified investors access to a variety of insurance opportunities, many of which are traditionally reserved for insiders of the insurance industry. These opportunities are only listed on our marketplace after they have undergone a rigorous vetting process by our Insurance Committee of experts.

The Insurance Committee
The Insurance Committee of Nayms includes five sitting members. Four are employees of the company, including an experienced underwriter, broker, insurance lawyer, and actuary. The fifth member is a representative from Nayms’ insurance manager in Bermuda, Willis Towers Watson, who lends independence to the Committee’s deliberations.

The goal of the Committee is to create trust and transparency around the investment opportunities that are listed on Nayms’ marketplace with a view to ensuring investors are given sufficient information to assess whether an investment opportunity meets their risk appetite.

The Application Process
Sponsors of an insurance programme or ‘segregated account’ at Nayms are required to fill out an application to execute a business plan. The application includes an intake form and an actuarial spreadsheet.

• The intake form collects qualitative information on the Sponsor’s legal person, including a description of its core activities and its principal personnel. It establishes a target for capital and a description of the insurance business that this capital will support, including class(es) and distribution channel(s). Details around the governance of the prospective segregated account are confirmed as well as the cyber security controls.
• The actuarial spreadsheet collects quantitative information on proposed production, including total and average gross and net written premium, total and average limits and policy count, and attachment points. It establishes a loss ratio and expense ratio and sets a margin for the return on investment. The actuarial spreadsheet is cross-referenced against internal and industry benchmarks, where applicable.

The application process should not be daunting. It is a streamlined, soon-to-be fully digitised process that is far ahead of the insurance industry’s norm. Nayms is available to assist Sponsors with filling out the various sections and to answer any questions.

The Review Process
Once a sponsor’s application is complete, the Insurance Committee will review its contents and write up a summary of its general, actuarial and legal points. This review documents clearly whether a Sponsor’s business plan meets the company’s high standards around capital and solvency, risk management, and underwriting.

The Committee formally deliberates on the application, and if a majority of the Committee’s members agree as to the practical and prudent viability of the business proposal, the application will be approved and a segregated account will be set up. The vehicle is now ready to raise funds from external investors.

Licensing and Regulation
Nayms is registered in Bermuda as a segregated accounts company under the Segregated Accounts Companies Act 2000 (SAC Act) and holds a Class F licence under the Digital Asset Business Act 2018 and a Class IIGB licence under the Insurance Act 1978. All of our internal processes reflect our many obligations as a holder of these licences, including Solvency II- equivalent capital and solvency requirements.

Our regulator is the Bermuda Monetary Authority (BMA), a world-class tech-forward authority. Ongoing dialogue between Nayms and the BMA has been instrumental to our launching of pioneering innovative insurance products, including the world’s first crypto-denominated industry loss warranty (ILW) in July 2023.

Author
David Verbeeten
Chief Commercial Officer, Nayms

About Nayms
Nayms SAC Ltd. is the world’s leading crypto-native insurance marketplace. The company is registered and regulated in Bermuda with licences for both insurance (IIGB) and digital asset (DABA Class F) business. It operates as a bridge between alternative capital and a wide variety of property and casualty risks. It provides the technical and legal infrastructure over which relevant stakeholders, including insureds, insurers, brokers, and underwriters, can come together to capitalise and transfer risk on-chain. Building on Ethereum and Base, Nayms’ diverse team uses smart contracts to enable on-chain insurance placement and crypto-native transactions for collateral, commissions, premiums, and claims.”

For more information on Nayms and investment opportunities, contact lachlan@nayms.com, or go directly to the website.