Aon completes blockchain pilot
Aon announced the successful completion of an innovative pilot for placing insurance using blockchain and smart contract technology. The pilot was conducted with Nayms SAC Ltd., a crypto-compatible insurance marketplace, and Copper.co, a digital assets custodian.
In this pilot, Aon leveraged a Copper Web3 custodial wallet to sign transactions and transfer funds on Nayms’ platform. Within the Nayms marketplace, Aon quoted insurances on-chain and earned crypto-native commissions on its brokerage.
Using Copper’s infrastructure, premiums were paid in stablecoins and the commissions due to Aon for its placements were automatically allocated to the firm’s user account on Nayms’ platform through smart contract logic without the need for manual intervention or reconciliation.
Notable benefits of blockchain and smart contract technology for insurance stakeholders include access to new sources of capital, enhanced transparency, and reduced administrative costs and processes. Nayms’ platform facilitates tokenization of risk-bearing capital and can provide investors in this asset class with liquidity through secondary trading of their positions.
Aon has been developing innovative solutions and products with the overarching goal of promoting safety and trust to help foster institutional adoption of Web3.
“Aon is committed to investing in new solutions to better serve our financial institution and commercial clients who are testing and developing innovative products underpinned by blockchain technology. The potential benefits of blockchain are compelling, including lower transaction costs, which can lead to greater access and participation in financial services.” – Jillian Slyfield, chief innovation officer at Aon.
“This pilot demonstrates the efficiency gains that institutions can expect from the Nayms platform which leverages blockchain technology to conduct insurance in a highly innovative yet secure and compliant manner.” – Lachlan Douglas Ferguson, business operations manager at Nayms.
“With this pilot, we demonstrated how to bridge the gap between insurance and crypto. This innovative project represents a significant step toward revolutionizing the insurance industry by embracing the power of blockchain and digital currencies.” – Dmitry Tokarev, founder and CEO at Copper.
“We are proud to have completed a successful pilot for on-chain insurance leveraging the solutions offered by Nayms and Copper, and we appreciate the contributions of the various Aon solution areas and geographies that participated in this effort.” – Jim McCue, Web3 leader at Aon.
