After two years of existence, B3i (Blockchain Insurance Industry Initiative) has successfully completed its first pilot project involving MAPFRE RE.
A total of 30 CAT XL reinsurance contracts (Catastrophe Excess of Loss) have been renewed, including some of the world’s most complex programs. The renewal has been carried out in parallel with the traditional procedure and has involved nine insurers, four brokers and eight reinsurers that are part of the initiative.
The insurers, brokers and reinsurers that make up the B3i organization have worked collaboratively to develop and implement the project infrastructure, which is based on DLT (Distributed Ledger Technology). For such purpose, users have performed different tests, undergone training and exchanged information and knowledge through interactive channels.
Contract renewal transactions have been made through the B3i platform with a product exclusively for CAT XL contracts. It is estimated that the range of solutions offered by B3i will be extended to other types of reinsurance and direct insurance in the future. Users will have access to B3i’s internal APIs and external agents will be able to use the platform with their own applications, preserving the same DLT-based network and infrastructure.
A solution to grow business
“The reinsurance transactions show that DLT will be a powerful solution for insurers, brokers and reinsurers to grow their business, generating more profits and creating material efficiencies over existing technology,” explained John Carolin, CEO of B3i.
In this first phase, the pilot was based on re/insurance placements. The next steps will focus on the development of technical accounting and claims management, covering the full life cycle of reinsurance contracts.
In 2020, B3i will continue to develop the platform and the CAT XL product. It is also expected to expand into large commercial applications.