Blockchain startup Nayms is planning to mimic a Lloyds syndicate on the public Ethereum blockchain. The company is regulated as a digital assets and general insurer in Bermuda and previously ran a pilot with AON. Today it announced it has gone live.
It follows raising a funding round in April valuing the startup at $80 million.
Nayms provides a marketplace for insurance contracts and raises money from the capital markets, or rather the crypto markets. Hence, it provides an additional place where insurers or brokers can tap capacity to underwrite risks.
Each insurer creates a cell or segregated account with its own token.
At launch, it has a single $500,000 cell. And unsurprisingly, the insurance on offer is related to blockchain, including excess cyber liability and smart contract risks. The returns are attractive, ranging from 10% to 20%, but underwriting insurance is certainly not risk-free.