Resolute and Nayms Partner for an Industry Loss Guarantee (ILW) in Cryptocurrency

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Resolute Global Partners, the insurance and reinsurance-related asset manager, has partnered with insurtech Nayms to bring to market the industry’s first loss guarantee (ILW) to be denominated in crypto -cash. Nayms, which operates a Bermuda-based regulated market for crypto insurance, said the crypto-denominated Industry Loss Guarantee (ILW) was issued through a separate account within its market.

The ILW sees Nayms providing named US storm retrocession reinsurance coverage, tying above a $60 billion industry loss trigger.

Nayms said the ILW was collateralized using the cryptocurrency USD Coin (USDC), a so-called stablecoin, as collateral in the separate account.

The separate account is based on the Ethereum smart contract independently audited by Nayms, and the company said the collateral has been secured using new mechanisms and concepts, including a digital multi-signature process, for transparency. and increased efficiency.

“This agreement demonstrates so well the benefits of our business model and technology to a wide range of parties and opportunities. Notably, policyholders have access to alternative capital and investors can earn a return on their crypto that is fully regulated but uncorrelated to most other financial instruments,” explained Dr. David Verbeeten, Chief Commercial Officer at Nayms.

Resolute Global Partners, a Bermuda-based reinsurance company, Prospero Re, is the buyer for ILW.

Tom Libassi, Co-Founder and Managing Partner of Resolute Global Partners, said, “We are proud to partner with Nayms to offer the first-ever cryptocurrency-denominated property catastrophe reinsurance contract. This contract is also the first ILW with a loss trigger based on the advanced catastrophe modeling technology behind our Footprint product, which provides coverage for severe losses as well as a transparent, fast and highly efficient way for investors to access the real estate catastrophe market.

Nayms was assisted by Daniel Vestergren, CEO of Varius Capital Partners Ltd. and former head of ILS at Hiscox Bermuda, who acted as general counsel for the transaction.

The buyer and Nayms were guided by Guy Carpenter, who acted as the sole placement broker for the ILW.

This is yet another exciting use of smart contract and crypto technology in the ILS and reinsurance space, with the potential to enable access to a new class of investors who own crypto-assets. currency and look for other sources of return.

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