As the finance world begins to embrace the potential of digital insurance, Dan Roberts believes Nayms is perfectly positioned to provide everything players need. Roberts, Nayms’ co-founder and CEO, sees the company becoming the Lloyd’s of London for Insurtech.
The original thesis was to build a bridge that allowed assets to match liabilities when addressing cryptocurrency risk. Several pivots and a few years later, Nayms evolved into a digital space for the creation of insurance programs, the raising and trading of capital, the writing of risk, and the payment rails for premium and claim transactions.
Credit Roberts and his team for recognizing an opportunity. Regardless of the original vision, Nayms saw customers coming to them as a reinsurance market where they could transfer risk from their books.
“By launching our reinsurance pool on the tokenized infrastructure, our selling point on the capital side can be as a fundraiser against a stable, diversified pool,” Roberts said. “We’re the only player to be opening up cryptocurrency as collateral for claims in the reinsurance sector. We’re way ahead on the regulatory side in doing that.”
All processes are conducted using a cryptocurrency of choice, such as Ethereum, or with stablecoins.
“By matching assets with liabilities, we reduce or eliminate currency risk on blockchain exposures; and by matching demand with much-needed supply, we bolster growth and stability within the blockchain ecosystem,” Nayms’ whitepaper states. “Nayms’ proposition is especially well-suited to the placement of blockchain-specific risks such as cryptocurrency exchanges, custodians and the smart contracts of DeFi, which represent billions of dollars of as yet uninsured value.”
Roberts said Nayms offers a viable alternative for newer companies needing access to capital. It also facilitates coverage for those seeking insurance for officers and errors and omissions. Providing an asset class to compete with private credit doesn’t hurt, either. Capital transparency, especially in light of recent frauds linked to unknown capital, is a strong plus.
As he looks to 2025, Roberts is watching how insurance can remain competitive with global capital markets. He said that available capital seeks new spots, so it’s a good time to get involved.
“We see digital assets as being one of the largest sources of collateral,” Roberts said.
Like many fintechs, Nayms doesn’t reinvent the entire wheel, just parts of it. Roberts said the focus is on capital markets access. Once there, they leverage the best-performing underwriters. Several proofs of concept are in development, so 2025 could bring plenty of good news that moves the space forward.
“What Lloyd’s of London is for insurance, we want Nayms to be for insurtech,” Roberts said.
“We can unlock this new source of capital. We want insurtechs (and others) working on data-driven and digital solutions in the insurance space, those forward-looking companies coming from the insurtech space, the companies with new ways to price niche risks using different types of analytics (to thrive).
“That’s a very interesting market for us to say there’s a new source of capital for you to get going.”