Appendices
Additional resources and information that can assist you in using our web application effectively. These appendices provide supplementary details and insights to enhance your experience.
Glossary of Terms
Overview: To help you better understand our application, its features, and how it fits into the broader reinsurance industry, we've compiled a glossary of common terms and concepts.
Glossary:
Account: A separate and distinct account (comprising or including entries recording data, assets, rights, contributions, liabilities and obligations linked to such account) of a SAC and established by Nayms on behalf of a Sponsor pertaining to an identified or identifiable pool of assets and liabilities of such SAC which are segregated or distinguished from other assets and liabilities of the SAC for the purposes of the SAC Act.
Agreement: Any agreement(s) entered into or proposed to be entered into between you and us for your access to and/or use of our Platform and/or services provided in connection with a Segregated Account.
Average Limit: Straight average of attachment point for all policies written.
Binding Date: The date when an insurance policy becomes effective — the point at which the underwriter formally commits to providing coverage according to the agreed terms, even if the policy documentation is finalized later.
BMA: The Bermuda Monetary Authority.
Brokers: Regulated Insurance Brokers looking to source insurance capacity for their clients (Insured Parties) in return for a premium commission.
Capital Providers: Constituting ‘capital markets’, these are investors into insurance risk, either on a collateralised or portfolio basis.
Capitalisation: The amount of capital an entity holds to support its underwriting obligations. Strong capitalisation ensures that insurers and reinsurers can meet their claims obligations even in adverse loss scenarios.
Capital Management: The internal management of capital that is either on-risk (backing insurance during a policy period) or off-risk (waiting to be deployed to back an insurance policy but currently capital that isn’t directly backing a policy).
Cell: Also called ‘segregated account’—the legally distinct location where capacity is managed.
Claims Administrator: An independent administrator who will assess and approve or deny claims on the platform, in return for premium commissions.
Collateral: Capital that are assets provided as security to ensure the satisfaction of future insurance liabilities.
Collateralization: The ratio to which capacity is held against total limits written against a book of business.
Digital Asset Risk: Encompassing core areas inherent to protection of digital assets, including smart contract, bridging and crime protection.
Entity: A legal structure created on the platform (such as a cell or segregated account) that holds insurance capacity, accepts premiums, pays claims, and manages risk according to the policies it underwrites.
Expected Loss Ratio: The ratio of expected claims (losses) to the earned premium for a portfolio or policy. It is used to assess underwriting profitability — a lower ratio typically signals higher expected profitability.
Family Office: A professional or entity responsible for managing and distributing a family’s investment capital across various asset classes. Their primary goal is to balance risk and reward to meet the family’s financial objectives.
Funds-Traditional or Hedge: A professional or entity responsible for distributing investment capital across various funds to achieve specific financial goals.
Industry Loss Warranty (ILW): An option contract against an industry-wide catastrophe event.
Insurance Linked Security: A fully-collateralized financial instrument covering property losses.
Insured Parties: Also known as ‘insureds’ or ‘cover holders’, these are clients looking to purchase insurance.
Liquidity Pool: A pooled reserve of capital available to pay claims or meet obligations across multiple insurance programs or policies. This may also facilitate buying and selling of positions without waiting for claims maturity.
Loss Standard Deviation: A measure of how dispersed loss outcomes are in relation to the mean.
Maturation Date: The date on which the insurance contract, program, or investment reaches the end of its term, and associated obligations (such as premium payment, claims settlement, or capital return) are finalized.
Maximum Limit: Maximum limit at risk for any one policy written.
Median Return: The ROI at the midpoint of the ILW distribution of outcomes, such that there is an equal probability of falling above or below it.
Modelled Expected Return: Probability-weighted ROI based on likelihood of outcome.
No Loss Return: Return assuming coverage is not triggered.
Policy: The document that details the terms of a contract of insurance.
Policy Period: Window that policies are to be written.
Policy Wording: The full set of written terms, conditions, exclusions, and definitions that outline the coverage provided under an insurance or reinsurance policy. It legally governs how claims are handled and what risks are covered.
Portfolio: A collection of insurance policies or contracts held by the organization with a goal to diversify risk exposures across different types of coverage.
Portfolio-based Contract (PBC): A contract for a policy where the Lead Underwriter assumes the risk in full. Capital Providers can purchase the Underwriter’s entity token to gain exposure to the Underwriter’s portfolio of risk.
Premium: An amount that an Insured Party pays for their policy. Payment amounts and frequency are defined in the premium schedule.
Premium Adjustment: A modification to the original premium amount based on factors such as updated risk assessments, changes in coverage terms, or actual exposure differing from initial estimates during the policy term.
Premium Schedule: A structured plan outlining how and when premiums are due over the course of the policy period — including installment payments if applicable.
Profit Standard Deviation: A statistical measure showing how much actual profits may deviate from the expected (average) profit in an insurance investment. A higher deviation indicates greater variability in potential outcomes.
Property Catastrophe: Natural catastrophe risk focuses around Named Windstorm and Earthquake coverage, generally risk remote.
Qualified Acquirer: Investors must meet the definition of a 'qualified acquirer' as set forth in the Bermuda Digital Asset Issuance Act 2020. This includes high-income individuals earning over $200,000 individually or $300,000 jointly with a spouse or corporate entities with total assets of at least $5,000,000.
Reporting Period: Extra time for claims to be made after the end of the risk period.
Return on Investment: The expected return received by investors from program performance.
Risk Earning Period: The timeframe over which the insurer earns premium income in proportion to the period of risk coverage provided. In some cases, premiums are recognized as earned gradually over the policy term.
Settlement: The final payment of a claim by the insurer or reinsurer after a loss event occurs and the claim is validated according to policy terms.
Speciality Risk: Often called Specialty/Casualty this line covers many of the 1st and 3rd party liabilities that are not covered under a property or marine cover.
Trading Commission: A fee charged for facilitating transactions such as buying or selling insurance-linked tokens, cell ownership, or other marketplace trades.
Tranche: A slice or portion of an insurance-linked investment offering different levels of risk and return. Tranches can be structured to appeal to different investor risk appetites — for example, higher-return tranches may absorb first losses.
Underwriter Capacity: The maximum amount of liability that an insurance company or underwriter agrees to assume through its underwriting activities.
Underwriters: Regulated (re)insurance companies looking to cover policies in return for premium earnings, and to raise capital from capital markets to provide this cover.
References
Overview: This section includes references to external resources, documents, or websites that may be helpful for your work with our product.
Resources:
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Contact Information
Overview: If you have questions or need support, our team is here to help. You can contact us through the following channels:
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