Blockchain

Showing posts with label Blockchain. Show all posts
Showing posts with label Blockchain. Show all posts

Thursday, 13 February 2020

Major re/insurers and brokers complete complex placements on B3i’s blockchain platform



30 contracts completed on B3i’s platform
B3i Services AG, a 2-year-old company entirely owned by members of the insurance industry, announced 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 9 insurers, 4 major brokerage firms, and 8 reinsurers participated in the placements, which were conducted as a parallel run with 1/1/20 renewals or as a re-creation.
B3i, insurers, brokers, and reinsurers have worked collaboratively to set-up distributed ledger technology (DLT) infrastructure, conduct user acceptance testing, and train end users.  The transactions were conducted in 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, stated: “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.”

Alberto Valenti, Head of Group Reinsurance at Generali, stated: “Our company has tested the potential of B3i’s application recreating the placement of the Group Cat programme after the end of the 2020 renewal. Generali has extended the parallel run also to 2 selected intra-group reinsurance Cat programmes observing several potential benefits in adopting the application for the intra-group transactions. Our main brokers and reinsurers have been involved.

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 currently has 20 shareholders, all insurers or reinsurers, from Europe, Asia, North and South America, and Africa.  B3i will conduct a fundraise 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 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.”

B3i’s Chairman, Antony Elliot, said, “B3i has always been by the industry, for the industry. Our global shareholders and B3i’s talented team have built the only application that uses distributed ledger technology to facilitate reinsurance placements. B3i looks forward to expanding our engagement with insurers, brokers, and reinsurers to develop the platform’s capabilities further considering reinsurance and commercial insurance use cases.”

Sunday, 29 April 2018

Fitch: Does Blockchain Represent a Paradigm Shift for Insurance?




Fitch Ratings views blockchain as a potential game-changing technology for the insurance industry over the long term. Benefits could range from significantly reduced operating costs, more accurate customer-specific data, and better risk pricing and improved efficiencies. However, the technology remains unproven, and greater clarity around its advantages and risks will be revealed over the next three to five years. As such, we do not see blockchain affecting insurer ratings over the short to intermediate term.
 Blockchain, also known as distributed ledger technology, is used in a decentralized fashion to digitally record and verify a wide range and volume of information relating to commercial transactions. The technology was initially created as part of the bitcoin cryptocurrency network. Blockchain's transparency, security and information storage capacity have recently attracted other industries to explore opportunities to leverage this technology.
Insurance is fertile ground for blockchain's capabilities. With the industry's large number of complex transactions between multiple parties, blockchain could theoretically offer significant cost reductions, improved processing speed, and enhanced underwriting and pricing, while reducing fraud. Efficiencies and cost reductions could be achieved by reducing the need for reconciliation and audits, automating certain processes and improving access to data. Estimates of the potential savings for the global (re)insurance industry from Pricewaterhouse Coopers and B3i, an insurance industry trade group focusing on blockchain, range from 15% to 30% of annual current expenses.
The uncertainties around this nascent technology remain pronounced. When and how much blockchain will be adopted remain major unknowns. Part of the challenge is that investment costs relative to benefits are uncertain, and there are numerous legal, regulatory and security issues that need to be addressed to facilitate wide-scale adoption.
There is also no particular urgent crisis that blockchain would address to necessitate immediate application. Fitch believes that the ultimate viability of the technology for the insurance industry will depend on a select group of industry leaders adopting blockchain to gain competitive advantages.
The insurance industry is taking tentative steps to explore the technology. The aforementioned B3i initiative has grown to 15 insurance industry firms, up from five when the technology first became available in 2016.
The RiskBlock Alliance was also created as an insurance industry trade group to facilitate blockchain use in risk management. The Fitch special report published today, "Blockchain and Insurance - The Trust Machine," assesses the potential benefits, risks and uncertainties regarding blockchain's application to the insurance industry. The report is available to subscribers through the link above or at www.fitchratings.com.

https://www.fitchratings.com/