B3i Services, a two-year-old company owned by members of the insurance industry, says that 30 contracts of reinsurance have been concluded on its platform, including some of the world's most complex Catastrophe Excess of Loss (XoL) reinsurance treaties.
A total of nine insurers, four major brokerage firms, and eight reinsurers participated in the placements, which were conducted as a parallel run with 1 January 2020 renewals or as a recreation.
The transactions were conducted on B3i’s application, but third parties may build their own applications atop B3i’s APIs while preserving the benefits of distributed ledger technology.
Dr Silvio Tschudi, senior retrocession manager at Allianz Re, said, “B3i’s platform shows what’s possible for greatly easing the placement process for all parties involved, and it’s very promising. Working with our brokers and reinsurers during the placement process, across the B3i platform, has shown improved efficiencies and complete contract certainty.”
In 2020, B3i intends to continue to develop its reinsurance platform to include additional types of reinsurance and modules for technical accounting and claims, thus covering the full lifecycle of a reinsurance contract. Further, B3i is expanding into large commercial applications.
B3i is a global initiative supported by 20 shareholders, all insurers or reinsurers, from Europe, Asia, North and South America, and Africa, as well as a diverse community currently comprising over 40 companies. B3i was founded in October 2016 as an insurance industry consortium, which then formed B3i Services AG as an independent company.
B3i will conduct a fundraising exercise in 2020 which is open to insurers, brokers, reinsurers, and service providers to the industry.
“The reinsurance transactions show that distributed ledger technology will be a powerful solution for insurers, brokers, and reinsurers to grow their business while creating material efficiencies over existing technology. B3i offers the only DLT-based solution in production and capable of handling reinsurance placements today,” said Mr John Carolin, CEO of B3i.
“We invite all participants in the insurance industry to work with B3i to improve risk transfer using distributed ledger technology?—whether by investing and joining our governance, by using the platform for transactions, or by partnering to develop new solutions.”