NFTs, Digital Twins and Insurance: Mirroring a New World.

4 min readMay 7, 2021


What is an NFT?

A non-fungible token (NFT) is a bit of data stored on a distributed ledger, called a blockchain, that certifies the authenticity of a digital asset. An NFTs can be used to represent items such as photos, videos, audio, and different types of digital files. The big difference with other blockchain-based assets such as Bitcoin, Ether, and other stablecoins is that they are all unique and non-interchangeable.

One of the pioneers of the NFT world in Europe is Frederic Montagnon, Executive Chairman at Arianee, the digital platform using NFTs for all valuables.

“What’s happened over the past 25 years is that we went from no screen to probably 85% to 90% of our time spent on a screen or with a screen in your hands,” Montagnon said. “We are living connected all the time now. And the existence of real assets, when you spend most of your time in a digital environment, has no sense anymore. What we are trying to do is to bring all these real assets into your digital life.”

So NFTs are the future? Well, the interest is rapidly growing!

You now have a lot of options to buy and sell NFTs and InfluenceMarketingHub made a pretty good list of marketplaces for creators to sell NFTs.

Some examples?

In the digital art world, the creators are developing new ways to sell their creations. The Nyan cat gif has been sold for roughly $561,000 (or 300 Ether). Steve Aoki sold one of his digital creations for almost $90,000. But the artist Beeple sold his “collage” for $69 million making him the third most expensive of all living artists, behind only Jeff Koons and David Hockney.

And now, brands or organizations like the NBA, the UFC, Taco Bell or Pringles are selling their own creations or digital products with NFTs. Creators are also developing their own tools to promote their NFTs, like Fruit of Form/NFT.

Anybody can own a copy of a masterpiece but only one person will own the original rights, but is it possible to steal those NFTs?

NFT and Insurance: Property Damage, Loss and Beyond.

Insuring your house or your most precious assets seems to be normal, so what about insuring the right you have on digital or physical assets.

NFTs are changing how creators sell or trade their works online. It’s a good example of how brands can enter the NFT industry, with blockchain technology to provide security. So what about Non-fungible tokens insurance to minimize risk?

Non-fungible tokens insurance (NFTs) will protect your digital assets using the blockchain technology against losses from theft, hacks or other sources of malicious attacks. It’s still the very beginning of the insurance industry for NFTs but insurance companies will definitely catch up and create products. NFTs are the future according to Mark Cuban but how to protect them?

You can have two types of NFTs insurance coverages for businesses and individuals: damage of the NFTs or crime against it.

A damage could be an employee destroying your NFT or it could be damaged by your computer. We could also imagine the damages caused by an attack against the blockchain. All those scenarios are still processed by the insurance industry to provide the best coverage and products for the clients.

A crime could be a theft or even the intentional destruction of your NFT. A fraud would be also seen as a crime, if someone tried to hack your system to steal your NFTs.

Right now there are no non-fungible tokens insurance policies and the owners of NFTs can only rely on the blockchain and cold and hot wallets to protect their ownership. The future will be interesting as insurance companies will have to evaluate the risk associated with these tokens. Those companies will have to protect their clients’ NFT investments, to protect against the volatility of the crypto world and the risk of theft and attack on NFT wallets.

The needs for digital twins and immutable records of existence and property will ensure transparent and auditable insurance adjudications.

But the clients will also ask for immediate claim payouts.

Otonomi and its unique digital-first insurance automation technology can help insurers to provide high-quality products to their customers owning NFTs and for fast compensation, using digital-native payment solutions.

Stay healthy!


OTONOMI is a parametric insurance solution for carriers. We are transforming the air cargo insurance process into a fast, transparent, and cost-efficient experience for both the policyholders and insurers. Powered by our proprietary technologies in data-activated triggers, smart contracts, and integrated digital wallets, we reduce claim resolution times from 45 days to 45 minutes, lowering admin costs by 90%.




OTONOMI is a blockchain-enabled parametric platform that transforms cargo insurance policies into fast, cost-effective, and transparent digital products.