Nayms in Bermuda
The Nayms Team gathered this past week in Bermuda, it was a highly-anticipated trip to move away briefly from our virtual hangouts into 3D human form. For many this was the first in-person meeting after working remotely together for the last two years. We toasted to our work so far and laid out our strategic direction for 2022.
Nayms plans to build the world’s leading, fully-regulated marketplace for on-chain insurance. Through our work so far with the industry we 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 entailed in covering digital asset risk.
The purpose of this trip was to strengthen relationships between our team and members of Bermuda’s digital asset and (re)insurance sectors. With the support of Carey Olsen, a law firm on Island, we ran a morning briefing with the industry, many of which are in our feedback program that has been running for the last half of 2021. It was also nice to see some good press come from the occasion.
A Technological and Regulatory Collaboration
Ongoing discussions are often around how legal and regulatory processes can support technology, not hinder it. If, for example, a shareholders resolution is required every time insurance capital is traded, then tokenisation of such capital becomes useless, and liquidity will remain low in the insurance space. Another example is how smart contracts handle many of the functions of insurance administration (a strong use-case for blockchain technology), so bureaucratic duplication needs to be avoided for the power of technology to be realised. We will be doing a deep dive into this area and how we are working with our partners on such challenges following our full license announcement in the months to come.
This collaboration between legal, regulation and technology is important to get right. As a project, we will succeed in bringing insurance as an asset class to a new group of institutional investors if we achieve this balance. We believe that the insurance sector and the capital markets that support it are a largely untapped resource of engagement for the cryptocurrency space, and with the right approach can unlock tremendous value for both sides of the market.
As a regulated start-up of Bermuda, we were happy to get face time with regulators and government officials after a year of virtual collaboration throughout our sandbox license. We met with the CEO and wider team of the Bermuda Development Agency (BDA) and with the Bermuda Monetary Authority (BMA) to discuss strategy as Nayms becomes the marketplace for global insurance business to operate under Digital Asset and Innovative General Business Insurance. In English, the collaboration between the BMA and Nayms offers the environment to conduct on-chain insurance in a digital asset and insurance compliant fashion.
We also had the honour of meeting with The Premier of Bermuda, the Hon. E. David Burt, JP, MP & Finance Minister, The Hon. Curtis L. Dickenson, JP, MP to discuss the regulatory framework and challenges we’ve encountered when conducting insurance business using new technology in Bermuda.
The team spent much time working through our governance and underwriting requirements for our Bermudan insurance entity. As the scope and value of our proposition increases, so too does our oversight responsibilities which requires further growth of our insurance capabilities on the island.
The hard work over the last few years is coming to a climax in 2022. The growing Nayms team looks forward to announcing our progress and scaling insurance programs with our partners throughout next year.
For now, enjoy some of the beautiful sights we managed to visit during our trip (in between the rainy days!):