The global professional services firm Aon has completed a pilot for insurance placement using blockchain and smart contract technology.
The initiative also involves Nayms, a crypto-compatible insurance marketplace, and Copper.co, a digital asset custodian.
The pilot showcases blockchain's capacity for increasing capital sources, improving transparency and reducing costs in insurance processes.
Nayms' platform supports the tokenisation of risk-bearing capital, offering liquidity to investors through secondary trading.
Jillian Slyfield, chief innovation officer at Aon, states: “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.”
In the trial, Aon used a Copper Web3 custodial wallet to sign transactions and transfer funds on Nayms’ platform.
Within the Nayms marketplace, Aon performed on-chain insurance quotations and received crypto-native commissions.
Using Copper’s infrastructure, premiums were paid in stablecoins, and Aon’s commissions were automatically transferred to its account on Nayms' platform through smart contracts, eliminating the need for manual processing.
Lachlan Douglas Ferguson, business operations manager at Nayms, says: “This pilot demonstrates the efficiency gains that institutions can expect from the Nayms platform, which leverages blockchain technology to conduct insurance.”
Dmitry Tokarev, founder and CEO at Copper, adds: “With this pilot, we demonstrated how to bridge the gap between insurance and crypto.
“This innovative project represents a significant step towards revolutionising the insurance industry by embracing the power of blockchain and digital currencies.”
