Nayms places ILW contracts on Ethereum-based marketplace

Bermuda-based fintech re/insurer Nayms has placed an industry loss warranty contract on Base, an investment marketplace for tokenised asset classes. 

Nayms said that with the launch on the Ethereum platform, investors can more easily access yield-generating (re)insurance opportunities that are available within Nayms' marketplace in the form of a tokenized asset class.

“The first product to go live on Base will be an Industry Loss Warranty (ILW) contract, reinsuring against certain weather-related catastrophic events in Florida,” Nayms said in a statement. “Within a Bermuda-regulated segregated account structure, institutional investors can earn yield on their capital, targeting mid-high teen returns, paid by (re)insurance premiums by real (re)insureds who need their risk covered. 

“For early investors, the yield is complemented by an additional reward of NAYM issued tokens equivalent to up to 15% of invested capital.”

Nayms said tokenisation enables institutional investors to diversify their investment portfolios and capitalise on the growth of traditional private market asset classes. 

Nayms' opportunities offer investments into (re)insurance for property and casualty (P&C) risks like Cyber, Errors and Omissions, Directors and Officers coverage, crime/specie and various Industry Loss Warranty products, the company said. This exposure is typically only available to pension funds, private equity funds, and other major institutional investors. Nayms is making this exposure available to all qualified investors through tokenization, accessible in their wallets.

"We are excited to be launching on Base, our first Ethereum Layer 2 network. Our deployment was seamless as it is fully EVM compliant and we look forward to leveraging the reduced fees and easy onramp that Base provides," said  Nayms co-founder and chief technology officer, Ted Georgas (pictured).

Nayms' ILW is designed to safeguard buyers against the peril of named windstorms in Florida. To trigger indemnification, two independent named windstorms in Florida must each separately cause damage exceeding $10 billion to the state's insured property during the 2024 in-force period. 

Nayms uses USD Coin (USDC) as collateral within the segregated account on its independently audited Ethereum smart contract. This collateral is further secured through innovative mechanisms, including a digital multi-signature process, enhancing transparency and operational efficiency.

Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.