B3i showcases fully-functional blockchain reinsurance prototype
Fifteen global insurers and reinsurers participating in the B3i initiative has been working on a joint distributed ledger for reinsurance
The group publically showcased a fully functional beta-version of its integrated blockchain solution for the re/insurance industry at the 61st Monte Carlo RVS conference.
The platform uses distributed ledger technology to enable secure, confidential and efficient transactions in a blockchain network. The short term focus of the platform is on handling reinsurance contracts.
Paul Meeusen of B3i said: “I am really excited about our launch. Over the past four months, a dedicated, combined team drawn from B3i member firms has produced a working prototype covering the core functionalities required to enable a distributed smart contract management system for Property Cat XoL contracts. The deployment architecture is already close to a production-ready environment and the team is preparing for feature enhancements of the prototype and a first deployment into production in 2018.”
The B3i team has also developed an industry business case for the platform across the whole value chain. The consensus amongst the companies is that a productivity gain of up to 30% is achievable.
The next step is to launch a market beta-testing program for the prototype starting in October 2017. Existing B3i members and new participants will be able to take part in the test on an equal basis of a common testing agreement.
The participants will be granted access to a “sandbox” environment to simulate the creation and settlement of contracts and will be expected to feedback comments and change requests through defined channels.
The current governance and membership composition of B3i, based on a contractual agreement between the 15 companies, will remain unchanged until 31st December 2017.
A review is underway to consider creating a permanent operation within a legal entity in 2018. The objective of this entity is to further develop the infrastructure and processes to enable decision agility, talent acquisition and future platform R&D capabilities.
Christof Mascher, COO of Allianz SE, said of B3i, “I would like to congratulate the B3i team. The initiative shows that there is a lot of potential in joining forces across organizations to explore new solutions and technologies. As an industry, we need to collaborate and co-create, not only to continuously improve standards, but to strive for ever better solutions for our customers.”
The current 15 members of B3i are Achmea, Aegon, Ageas, Allianz, Generali, Hannover Re, Liberty Mutual, Munich Re, RGA, SCOR, Sompo Japan Nipponkoa Insurance, Swiss Re, Tokio Marine Holdings, XL Catlin and Zurich Insurance Group