Token holders gain governance power in reinsurance and liquidity management
Nayms, a crypto-native reinsurance marketplace, announced the public sale of its governance token, NAYM.
The token is designed to capitalize the Nayms Liquidity Facility (NLF), which engages in insurance pools and collaborates with market makers to provide liquidity and rewards to token holders.
Token holders can deposit into the NLF to gain a boost factor on any staked NAYM tokens in the governance pool. Through these stakes, holders can participate in marketplace governance, influencing decisions such as NLF investment allocations and the preferred asset mix. In return, stakers are rewarded based on NLF performance, recognizing their role in administering the liquidity facility.
Nayms said that it sees tokenization as a new opportunity for institutional investors to diversify portfolios while engaging in traditionally private market asset classes. The company provides exposure to reinsurance on property and casualty (P&C) risks, such as cyber, errors and omissions, directors and officers liability, and other industry loss warranty products.
Through tokenization, Nayms explained that it also aims to make this exposure accessible to all qualified investors.
Co-founder and CTO Ted Georgas (pictured above) stated that the NAYM token allows participants to engage in the global insurance market, which has traditionally been limited to large institutional allocators.
“NAYM provides a new model for industry collaboration and cooperation through governance and rewards from active stakers, while also opening up new capital opportunities in untapped insurance markets,” Georgas said.
Reinsurance expenses typically range from 5%-10% of premiums. Data from PwC indicates that blockchain solutions could reduce these expenses by 15%-25%, potentially saving the industry $5-10 billion.
Following a particularly severe hurricane season, including the costly impacts of hurricanes Helene and Milton – both estimated to be $50 billion events – reinsurance costs are expected to increase. Reinsurance solutions for such disasters help insurers provide timely compensation to policyholders while avoiding financial strain.
Earlier this year, Nayms launched an industry loss warranty (ILW) contract on Coinbase’s Ethereum Layer 2 Base, using a Bermuda-regulated segregated account structure to reinsure against specific weather-related catastrophic events in Florida.
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