Aon, a leading insurer, has announced the successful completion of an innovative pilot project aimed at revolutionizing insurance placement through the utilization of blockchain and smart contract technology. The pilot, conducted in collaboration with Nayms SAC Ltd., a crypto-compatible insurance marketplace, and Copper.co, a digital assets custodian, marks a significant milestone in advancing insurance practices into the digital era.
Blockchain Integration
In this groundbreaking pilot, Aon utilized a Copper Web3 custodial wallet to facilitate transactions and fund transfers on Nayms’ platform. Within Nayms’ marketplace, Aon seamlessly quoted insurances on-chain and earned crypto-native commissions on its brokerage activities. Leveraging Copper’s infrastructure, premiums were paid in stablecoins, and commissions owed to Aon for its placements were automatically directed to the firm’s user account on Nayms’ platform through smart contract logic, eliminating the need for manual intervention or reconciliation.
Benefits of Blockchain and Smart Contracts
Blockchain and smart contract technology offer a myriad of benefits to insurance stakeholders, including access to new capital sources, heightened transparency, and streamlined administrative processes. Nayms’ platform, in particular, facilitates the tokenization of risk-bearing capital, providing investors in this asset class with liquidity through secondary trading of their positions.
Promoting Safety and Trust
Aon remains committed to developing innovative solutions and products with the overarching goal of fostering safety and trust, thereby facilitating institutional adoption of Web3 technologies. Jillian Slyfield, Chief Innovation Officer at Aon, expressed the company’s dedication to investing in new solutions to better serve financial institution and commercial clients, highlighting the compelling potential benefits of blockchain technology, including lower transaction costs and increased access to financial services.
Industry Perspectives
Lachlan Douglas Ferguson, Business Operations Manager at Nayms, emphasized the efficiency gains demonstrated by the Nayms platform, which leverages blockchain technology to conduct insurance operations in an innovative yet secure and compliant manner. Dmitry Tokarev, Founder and CEO at Copper, hailed the pilot as a significant step toward revolutionizing the insurance industry by harnessing the power of blockchain and digital currencies. Jim McCue, Web3 Leader at Aon, expressed gratitude for the successful completion of the pilot, acknowledging the contributions of various Aon solution areas and geographies involved in the endeavor.
The successful pilot project signifies a promising future for blockchain-powered insurance solutions, underscoring the transformative potential of emerging technologies in reshaping traditional industries.