Blockchain-based B3i incorporates in Zurich ahead of funding round

The founders of the Blockchain Insurance Industry Initiative (B3i) have launched B3i Services in Zurich, Switzerland.

Founding shareholders are Achmea, Aegon, Ageas, Allianz, Generali, Hannover Re, Liberty Mutual, Munich Re, SCOR, Swiss Re, Tokio Marine, XL Catlin and Zurich Insurance Group.

Up until now B3i has been a collaborative initiative who came together in late 2016 to explore and test the potential of blockchain in the industry.

The new entity’s purpose is to provide insurance solutions on a blockchain platform that is set to improve efficiency across the value chain of the re/insurance industry — in some cases up to 30 percent, according to the organisation. These solutions are expected to benefit both insurance companies and customers through improved speed, transparency, quality, security, and cost.

B3i has completed its first product, a blockchain prototype for property cat XoL reinsurance contracts, in mid-2017. Throughout October 2017, a group of 38 insurers, brokers, and reinsurers tested its functionality and robustness. The prototype demonstrated that transactions could become quicker, more efficient, and more secure than with current methods. The first live trades on the platform are anticipated by the end of 2018, with several other products being developed concurrently.

The formation and incorporation of B3i Services as an independent legal entity with its own capital and intellectual property will allow the venture to streamline the development, testing and commercialisation of blockchain solutions.

The company will be raising additional funds from a wide spectrum of insurance industry participants over the coming months. The ambition is to create an ecosystem of products and services developed “by the market, for the market”.

Gerhard Lohmann, chief financial officer of reinsurance at Swiss Re has been appointed as chairman of the company.

"The transition of B3i from consortium to independent company is a concrete step forward to realising the enormous potential of blockchain for the insurance industry,” Lohmann commented.

“Personally, I am very excited to be at the forefront of this innovation that has the capability to transform the industry and help make insurance more affordable, accessible and attractive for market segments that are currently disenfranchised, or underprivileged."

Members of the B3i Services’ executive management team are Paul Meeusen, Fei Zhang, Sylvain De Crom, Markus Tradt and Ken Marke.

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