SurancePlus, Nexus Mutual, and OnRe are significantly expanding their tokenized insurance operations worldwide, with a target of November 2025. These entities are leveraging blockchain technology to enhance compliance and efficiency within parametric and catastrophe risk pools. The increasing liquidity and staking within these tokenized pools indicate a growing institutional interest, signifying a major shift in the insurance sector towards blockchain-driven solutions.
Nexus Mutual, OnRe Lead Tokenized Insurance Surge
The expansion of tokenized risk pools is gaining considerable momentum. Leading projects such as Nexus Mutual, SurancePlus, and OnRe are actively enhancing coverage options in critical sectors including parametric weather and cyber risks. Institutional reinsurers are demonstrating active participation, with projects embedding smart contracts to automate processes and implement compliance measures necessary to meet diverse jurisdictional requirements. This strategic integration marks a notable evolution in insurance funding methodologies.
Ted Georgas, Co-Founder & CTO of OnRe, highlighted the project's progress: "OnRe has partnered with three major reinsurers to tokenize $450M in catastrophe risk pools, with all transactions and claims settlement now on-chain. Our platform is live in the EU and Singapore, with U.S. regulatory approval pending."
Over $1.2 Billion Covered in Smart Contract Risks
Nexus Mutual has reported substantial growth, with over $1.2 billion in smart contract risk coverage. The tokenized risk pools are experiencing increasing engagement, evidenced by significant inflows documented in both NXM and LINK staking pools, which strongly signals high investor confidence. With the addition of $450 million in catastrophe risk pools by OnRe, industry experts anticipate a rise in Total Value Locked (TVL), further reinforcing blockchain's transformative role in the insurance sector.
Blockchain's Real-Time Data Spurs Insurance Innovation
The launch of tokenized risk pools by Nexus Mutual in 2023 marked the inception of this expanding trend, with various projects subsequently broadening their scope into a wider array of risk categories. Institutional endorsements and growing regulatory interest have since become key drivers of innovation and expansion within the space.
Industry experts emphasize blockchain's inherent potential to provide real-time data and enhanced transparency. This capability is poised to revolutionize insurance funding and management practices, aligning with current industry trends. Hugh Duffy, CEO of Nexus Mutual, underscored the significance of these developments: "Tokenized risk pools are not just a DeFi trend—they’re a fundamental shift in how insurance is funded and managed."