Insurance co-op B3i form blockchain startup
Blockchain contract trial transactions were up to 30% faster and more efficient than current methods.
The Blockchain Insurance Industry Initiative (B3i) has transitioned from a blockchain consortium to an independent legal corporation that plans to commercialize blockchain solutions it has developed and tested.
B3i was started in late 2016 as a collaborative initiative between 15 global insurers and reinsurers to explore, investigate and trial the potential of blockchain technology on the risk management industry.
The B3i startup will be an incorporation of B3i Services AG in Zurich, Switzerland.
In mid-2017, the group successfully built its first product, a blockchain prototype for property catastrophe reinsurance contracts. During October last year, a group of 38 insurers, brokers, and reinsurers tested the prototype’s functionality and power. Trial transactions were faster and more efficient than current methods.
“The first product demonstrated efficiency gains of up to 30% in initial testing,” according to B3i.
B3i expects the platform to begin live trading by the end of 2018. Other products are also in development. The company plans to raise additional funds from a number of insurance industry participants in coming months.
In a post this week on the B3i blog, Aegon Blue Square chief executive Chris Madsen emphasized that beginning with reinsurance was the most logical starting place for the new company’s initial endeavors.
“Since reinsurance is B2B, it naturally limits the scale of the problem that needs to be solved. Any B2C solution would need to solve at least the challenges we are currently addressing as well as additional ones. So, B2B is a stepping stone that is also a significant business case in its own right,” Madsen said.
Blockchain or distributed ledger technology (DLT) is a digital register that records cryptocurrency transactions. It provides complete transparency and is secure because no-one can tamper with the transaction history. Without the blockchain, digital currencies like bitcoin, Ethereum and Ripple wouldn’t be possible.
The state of West Virginia will become the first in the US to offer blockchain-based mobile voting in a federal election, when deployed military personnel from two counties vote in the upcoming Senate primary election. If successful, West Virginia intends to employ the new system in all 55 counties for the 2018 General Election.
Many innovative startups and financial institutions are already leveraging the blockchain for modernization. Global banks are aware that they need to evolve with changing times, and are utilizing blockchain technology.
For example, internet technology company Google is reportedly creating its own blockchain technology to underpin and differentiate its expanding cloud business.
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