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In-depth interpretation of the world's first regulated insurance project on the chain: Nayms

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Every insurer with capital in the Nayms market is actually an independent account, and each independent account has its own unique business plan. The technical affairs of separate accounts, operating licenses, etc. are all handled by Nayms' SAC.

Original title: " In-depth interpretation of the world's first regulated chain insurance project: Nayms | veDAO Research Institute "

Original source: veDAO Research Institute

Nayms is an insurance technology company, the traditional insurance industry is opaque, slow and efficient At a low level, the new project Nayms has made the insurance industry transparent and efficient by introducing blockchain technology, and at the same time raised risk pricing and insurance business management to a new level.

Nayms is also the only company that has obtained both an encrypted asset license and a commercial insurance license. Items for insurance business.

Nayms perfectly combines the characteristics of centralized supervision and accountability with the characteristics of decentralized finance (DeFi). Nayms' insurance business is fully regulated in Bermuda, the world's third largest insurance jurisdiction, with oversight provided by the Bermuda Monetary Authority, a leading technology-forward regulator.

Then veDAO will lead you to understand the unique design and operation mechanism of Nayms in detail.

Separate Account Company (SAC)

Nayms is registered in Bermuda as a Segregated Account Company (SAC) with statutory authority to issue segregated accounts, each of which is owned by all investors in that account. Segregated accounts are defined in the relevant "legislation" as separate and distinct pools of assets and liabilities managed by the same institution.

Each underwriter with capital in the Nayms market is actually a separate account, and each separate account has its own unique business plan. Technical matters, licenses to operate, etc. for separate accounts are handled by Nayms' SAC.

Sponsor

Each separate account is a third party (called the sponsor person) requirements established. Sponsors can create crypto-native insurance businesses based on their expertise and understanding of crypto insurance. The promoter needs to fill in various materials and a detailed business plan according to Nayms' requirements before submitting an application for creating an insurance business to Nayms. Completed applications are reviewed by Nayms for comprehensiveness, reasonableness, and alignment with internal benchmarks, with the final decision to approve or reject the application.

If the sponsor's application is approved, Nayms' SAC will open a separate account in the name of the sponsor who is responsible for implementing the insurance business plan and ensuring The account is fully capitalized and funds are deployed prudently. The promoters should assist Nayms in managing the accounts, including conducting business, maintaining adequate capital levels, preparing financial statements and documents for regulatory requirements, and facilitating audits, among others. Sponsors are paid through a pre-agreed method with Nayms.

< h3>Capital

Insurers must have sufficient capital before starting underwriting business because capital is the ultimate reserve for claims. The capital raising of independent accounts in Nayms is carried out through Token swap, that is, each independent account sells the account's ERC-20 Token To get capital, ERC-20 to be sold (also issued) Token The price is set by the promoter, and the price is multiplied by the ERC-20 to be sold Token The amount should be the required capital level for the segregated account. The type of capital in the segregated account and the required amount is applied for by the promoter and approved by Nayms, the type of capital can be wrapped bitcoin, ethereum or stablecoin etc. The provision of funds by the funder is equivalent to signing an agreement with Nayms to obtain financial benefits and other rights and interests according to the terms and conditions of the agreement. The process of obtaining capital for independent accounts and the management of capital are all on the smart contract, which is an open and transparent record, and anyone can verify it through a block browser.

Each independent account has its corresponding ERC-20 Token , which is equivalent to LPtoken, whose holder is the account owner and entitled to return on investment. Sponsors are responsible for determining when their accounts are in surplus (defined as assets exceeding insurance liabilities) and presenting this to the SAC Board of Directors in due course. If both parties agree that a surplus distribution should take place, the control smart contract is instructed to execute the action. The smart contract distributes the cryptocurrency-denominated surplus proportionally to the account owner - the account ERC-20 Token holder. Surplus amounts accumulate from one distribution to the next until the user chooses to withdraw funds.

Account ERC-20 Token It can only be traded in Nayms' internal market and cannot be traded in the external market (because of registration and transfer). In its internal market, the account ERC-20 Token Divided into primary and secondary markets, which are sold when first raising funds for a segregated account Token For the primary market, the account ERC-20 after the account has been started and operated Token Buying and selling is the secondary market. Capital providers invest and trade based on their consideration of the sponsor's business plan and reputation. Secondary transactions can be priced at par, at a discount, or at a premium, depending on the performance of the segregated account. Under Bermuda law, each time a transaction is made, the latest Token Details of the holder are recorded in the account owner's company register. The online version of the registration is dynamically updated in near real time.

When a separate account is ready to be wound up, either because it has reached its pre-agreed maturity date or at the Sponsor's discretion or at the direction of Nayms, the account A "reverse" occurs after operations have ceased, all present and future liabilities have been discharged, and all investments have been liquidated Token exchange. Nayms’ smart contract is required to repurchase all ERC-20 for separate accounts from capital providers Token , in exchange for all available funds in the account. When the liquidation starts, the following operations will happen automatically. After the liquidation, the account owner (ERC-20 Token holder) the register will be cleared and the account will be closed.

Insurance and Claims

Once the separate account is fully capitalized, you can start selling insurance. Insurance contracts can be set up by an underwriting specialist, who can be the sponsor himself or one of his representatives, who has access to Nayms' online underwriting software, or "Policy Builder." Policy Builder is used to generate a schedule or statement page for each insurance contract, including participant identities: designated insured, underwriter, broker, and claim administrator, etc., and underwriting details: risk level, total insurance limit, total premium and payment cycle, as well as commission fees, etc. Policy Builder also allows users to upload documents in PDF. The schedule and documents together form the complete insurance contract.

Any underwriter with a separate account underwriting authority is required to comply with the account's underwriting guidelines, which are developed by Nayms based on the sponsor's input in their application. Any portion of an underwritten insurance contract that exceeds the underwriting guidelines must be submitted by the underwriter to Nayms for review. Before issuing a final insurance contract on Policy Builder, Nayms reviews policies in an order based on the underwriter's authorization level.

When making a claim, the Claims Processor submits a request to Nayms for confirmation. The insured must log in to the Nayms platform to withdraw the compensation denominated in cryptocurrency. For maximum security, claim funds can only be released to users from the fund pool of separate accounts through a multi-signature scheme, where a set of private keys is submitted to Nayms' smart contracts, Nayms' directors, insurance managers or promoters, etc.

< h3>Governance

As insurance licensee, Nayms maintains control over the separate accounts. Delegating certain rights and responsibilities for account management and other administration to the promoter or its representatives by signing a legal agreement. This license (and sublicenses) is captured in the terms and conditions of the Master Services Agreement (MSA). The sponsor's MSA includes a binding authorization agreement, which in turn contains underwriting guidelines. Brokers must join Nayms' platform to receive commissions, and brokers must sign a Terms of Business Agreement (TOBA). At the same time, brokers must be licensed to conduct business in Bermuda to enter the market.

Nayms supervises the segregated accounts strictly in accordance with the SAC functional requirements, of which it is particularly important that all segregated accounts maintain sufficient capital to comply with Bermuda's solvency Capital Requirements (BSCR) framework, Nayms will regularly review the solvency ratios of all accounts, and a dedicated robot will be responsible for monitoring and alerting.

Token

Although Nayms is a centralized company, it is governed by its board of directors and Bermuda Finance Authority's oversight, but it passes NAYM Token Integrate DeFi functions into its platform, which combines cutting-edge innovation of science and technology with compliance. NAYM Token With account ERC-20 Token Different: Account ERC-20 Token Can only be traded internally, while NAYM Token Can be listed and traded on external exchanges. NAYM is the utility of the Nayms platform Token . Holders can share in the positive performance of the market through staking and participate in the governance of the Nayms Discretionary Fund (NDF).

Nayms takes a commission on insurance business in the marketplace. Such as policy purchase and account ERC20 Token A certain percentage of fees are charged for transactions, and commissions for income include various cryptocurrencies (such as wBTC, ETH, DAI, etc.). The commission is deposited into the account of the smart contract, called the commission pool, from which it is regularly distributed to the following three aspects:

1/4 is sent to the Nayms pledge contract, and then Convert to DAI. Rewarded to users who are staking NAYM.

Sending 1/4 to the Nayms Discretionary Fund (NDF) to increase its reserves.

1/2 is sent to Nayms SAC Limited (“Nayms SAC”) as income. Nayms SAC also earns entry fees and user licensing fees.

Nayms plans 100 million NAYM Token . Token It will be distributed to all parties in the future.

< p> and many others Token Similarly, the circulation of NAYM will grow over time.

NAYM Token The schematic diagram of the circulation in the Nayms ecosystem is as follows:

Financing Information

April 20, 2023 Nayms Announces $12M Closing at $80M Valuation UDHC led the investment, and New Form, Tokentus and Keyrock participated in the investment. Combined with a £1.5 million ($2 million) seed round in early 2021 (investors include XBTO, Coinbase Ventures, Maven11 and Insurtech Gateway), Nayms' total private funding round comes to $14 million. The app for the Nayms insurance program has not yet launched, NAYM Token There is no public offering information yet.

< h3>Team

Nayms was established in 2020 and is headquartered in the UK. The Nayms team includes professionals in blockchain technology, insurance, capital markets, regulation, legal and corporate management, including 4 leadership members, 18 team members and 7 advisors. Nayms will use the new funds to expand its global team and accelerate the development of its crypto-native insurance marketplace.