Ethereum Now Allows Payment for Lloyd’s of London-Backed Insurance Policies with Crypto
Evertas and Nayms have collaborated to utilize a public blockchain for facilitating communication among brokers, insurers, and the insured. This partnership provides customers with the option to make payments in USDC or native crypto, or to execute policies entirely on-chain.
Lloyd’s of London, a longstanding insurance marketplace, is endorsing digital asset protection policies structured on the public Ethereum blockchain. These policies can be paid for in cryptocurrency natively on-chain. This initiative is made possible through the efforts of Lloyd’s coverholder Evertas and smart contract insurance provider Nayms.
In the past, obtaining cryptocurrency insurance coverage was a challenge. The recent development of a Lloyd’s of London consortium supporting crypto-native, on-chain insurance policies showcases the significant progress made by the industry in recent years. This advancement not only offers efficiency benefits in payment processing and reduces paperwork through blockchain integration but also demonstrates the industry’s evolution.
Evertas CEO J. Gdanski highlighted the significance of enabling seamless interactions between users of public blockchain infrastructure and traditional, regulated financial institutions. The ability to pay in USDC or native crypto, as well as the option to conduct policies entirely on-chain with blockchain coordination among brokers, insured parties, and insurers, represents a pivotal advancement in infrastructure.
Nayms functions as a digital marketplace connecting brokers and underwriters with crypto capital investment. The platform draws inspiration from Lloyd’s “Names,” a group of individuals and corporations involved in underwriting risks at the historic insurance market.
Evertas specializes in providing coverage to custodians, exchanges, and the bitcoin mining sector. The company recently acquired mining cover specialist Bitsure, expanding its offerings to include policy limits of up to $200 million per crypto mining location. This move underscores Evertas’ commitment to enhancing its underwriting process with crypto-native expertise, ensuring a comprehensive understanding of the risks involved.
Nick Selby, Evertas’ head of European underwriting, emphasized the company’s meticulous approach to underwriting, which enables faster claims processing compared to other entities in the industry. This explicit coverage approach ensures clarity on what is covered and accelerates the payment of insured claims.
In conclusion, the collaboration between Evertas, Nayms, and Lloyd’s of London signifies a significant milestone in the evolution of crypto insurance, showcasing innovative solutions and streamlined processes within the industry.
