Aon to launch 'first of its kind' cryptocurrency pilot

Re/insurance broker Aon is set to launch the first blockchain-enabled placement of insurance with regulated, professional insurance entities.

The company is collaborating with insurtech platform Nayms that helps cryptocurrency investors in insuring crypto-risk, and Bermudian specialist insurer Relm, to roll out its first pilot.

The cryptocurrency pilot will be conducted with Teller Finance, a decentralised lending protocol, to highlight how cover can scale efficiently by matching assets to liabilities when underwriting crypto-specific risk. Relm will underwrite the contract.

Benjamin Peach, associate director and digital assets specialist for the global broking centre at Aon, said: “By collaborating with Nayms and Relm to launch this pilot, we are taking the first step to creating a platform for digital asset companies to scale up their cover efficiently and cost effectively as the market continues to expand. As the first of its kind, this pilot represents a huge milestone for the digital asset and insurance industry.”

Joseph Ziolkowski, chief executive at Relm, said Relm had launched in 2019 specifically to bring informed and dedicated capacity for digital asset and blockchain businesses to the market.

“In addition to supporting numerous digital asset companies all over the world with financial and professional lines coverage, the Nayms platform will enable Relm and Aon to transact insurance in a manner that creates more alignment with our target insureds,” he said.

Dan Roberts, chief executive officer at Nayms, added: “As the digital asset space soars to $1 trillion, the need for appropriate insurance protection to scale alongside that growth will be vital for the sustainability of this innovative market. By working with Aon and Relm, we are enabling the collaboration between technology, regulation and the existing insurance marketplace, bringing a robust solution for the cover of digital asset risk to the market."

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