The Blockchain Insurance Industry Initiative (B3i) has announced that it is finalizing an investment round and will launch its first product next year.
Founded in 2016, the B3i is a collaboration of 15 global insurers and reinsurers formed to explore the potential of using distributed ledger technologies (DLT) within the industry for the benefit of all stakeholders in the value chain. The B3i is backed by notable firms including Allianz, Generali, Hannover Re, Liberty Mutual, Munich Re, SCOR, Swiss Re, Tokio Marine, XL Catlin and Zurich Insurance Group.
In an interview with Intelligent Insurer at an industry event in Amsterdam, B3i CEO Paul Meeusen said that they are currently about to complete a funding round working with existing and new shareholders mainly focusing on re/insurers and brokers. They plan to close that by the end of the year.
Since launching the initiative, B3i members have been seeking to fulfill the huge potential of blockchain with a singular vision: To build an efficient world-wide industry platform for market participants to more easily cede, handle and trade risks. Its first product, Property Cat XOL contract, uses DLT to enable secure, confidential and efficient transactions in a blockchain network. The product will be rolled out in January 2019.
In addition to Property Cat XOL contract, Meeusen said that B3i is also working on its next project which will be targeting the commercial insurance market. He added that the group recently held a commercial insurance workshop in Zurich to investigate how blockchain can be successfully applied to the value chain.
“In commercial insurance, our first focus will be property insurance, specifically in six selected countries in Europe,” Meeusen said. “Corporates typically have captives which go to a broker which goes to commercial insurance companies which then often go to a reinsurer. The issue we hear is that the chain is too long. With our commercial initiative, B3i is looking to create standards and a common terminology for all partners, and integrate all the information regarding the contract on one platform while automating functionalities of the contract.”
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