Aon announced partnerships this week that are helping the insurance broker to pilot a decentralized insurance offering. The new product will cover risks associated with DeFi platforms. More specifically, it will cover clients who experience losses as a result of hacks or buggy software.
The firm formed partnerships with smart insurance contracts provider Nayms, decentralized lending platform Teller Finance, and Relm, an insurance company that embraces new and emerging business categories.
“The Nayms platform puts the tool of smart contracts in the hand of regulated underwriters (like Relm) and brokers (like Aon), to open up a new capital source when underwriting crypto risk,” Nayms CEO Dan Roberts told NASDAQ via email. “This could be in either crypto (ETH, BTC) or in fiat (via a stablecoin). Aon is assessing both options as part of longer term programs.”
Aon and Nayms are conducting the pilot through Teller Finance, while Relm is underwriting the insurance contract.
While other players have offered insurance protection for crypto wallets in the past, Aon aims to be different. That’s because not only is the firm staying above board with fully regulated players, it is also focused on keeping the underlying processes straightforward and intelligible. Both of these attributes are difficult to achieve in the crypto world.