Nexus Mutual has announced a strategic partnership with InShare, a specialist in alternative risk transfer and mutuals. InShare, acting as a representative for ICMIF member The Retail Mutual, is working with Nexus Mutual to expand capacity and cover the 5,000+ small independent business owners in the UK that are the members of The Retail Mutual.

With this partnership, Nexus Mutual becomes the first to use on-chain capital to cover excess losses for a traditional discretionary mutual. In traditional markets, there is a severe shortage of capital to offset various underwriting risks. By working with Nexus Mutual, InShare can support its client and protect more retail businesses across the UK against small business risks such as fire, theft and accidental damage.

InShare purchased excess of loss and aggregate stop loss cover, which allows The Retail Mutual to pass risk onto Nexus Mutual’s USD 274M capital pool.

Graeme Thurgood, Chief Underwriting Officer of InShare said: “InShare understands the tremendous potential that accessing alternative risk transfer capacity holds for our Alternative Risk Transfer and SMART Structure operations, which ultimately benefit our valued customers. Being a progressive and forward-looking company, we are committed to continuously exploring innovative approaches that elevate our offerings and the overall customer experience. Embracing this opportunity allows us to diversify risk exposure more effectively and unlock new possibilities in products and services.

“Through our partnership with Nexus Mutual, we can bolster our commitment to ensuring that our customers receive unparalleled coverage options that align with their evolving needs,” Thurgood concluded.

With the launch of the Nexus Mutual V2 protocol in March 2023, Nexus Mutual says it now provides the necessary infrastructure to deploy more than USD 274M of crypto capital into traditional insurance markets and expand cover for real world use cases.

Hugh Karp, Founder of Nexus Mutual said: “There’s significant demand to bridge crypto capital into traditional financial markets, where it can have a genuine positive impact. Through our partnership with InShare, we are expanding protection across the UK and backing real world risks faced by everyday people. Nexus Mutual can help traditional insurance markets solve supply-side issues and expand capacity where it’s needed most.”