Showing posts with label Reinsurance. Show all posts
Showing posts with label Reinsurance. 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.”

Monday, 9 September 2019

Global insurers reiterate concerns about Canadian reinsurance proposals

Global Federation of Insurance Associations has again raised serious concerns about proposed capital rules from the Canadian Office of the Superintendent of Financial Institutions (OFSI), which the industry fears could lead to a lack of coverage in Canada.

Proposed rules from the OSFI would require P&C insurers to be fully capitalised against three extremely remote loss scenarios. However, the stress scenarios are far too extreme and the capital gap is too large to be afforded by these companies.

The ultimate outcome could be a shortage of capacity for specialised types of risks and industries, such as aviation, nuclear, oil and gas, and large construction projects.
The full letter is available here.