With the initial phase of launching the B3i Reinsurance solution completed, B3i is wellpositioned to press ahead with the roll-out of the solution across its membership–while also exploring new applications and expanding the development ecosystem around B3i Fluidity.
- Dramatic efficiency gains
- Reduced operational risk
- Accelerated cash flow
Pain Point
Value chains across the insurance industry are hampered by a high degree of manual processing and reconciliation, with multiple parties– insurers, brokers, reinsurers, and more–using different systems, and communicating about contracts via a wide range of channels. The result is high costs, slow turnarounds, and frequent errors–all of which impact the end customer experience. This is a data-hungry and file-driven industry, and nowhere are these challenges more prevalent than in reinsurance, where inefficiency, contract uncertainty, and operational risk impact all players along the value chain.
Solution
B3i chose R3’s Corda Enterprise to build its platform, B3i Fluidity. B3i Reinsurance (B3i Re) is the first Distributed Ledger Technology (DLT) application for the reinsurance market, focusing initially on the Property Catastrophe Excess of Loss (Cat XoL) market. The B3i Re-application represents the reinsurance industry’s first move into the DLT era, and the first solution developed and deployed on B3i Fluidity. Using the solution, all participants in the reinsurance value chain can access a single version of the truth to automate the end-to-end lifecycle of a reinsurance treaty.
76% of the participants said the application has a positive impact on auditability and contract certainty.
Outcome
In mid-February 2020, B3i customers–including participants from nine insurers, five major brokerage firms and 12 reinsurers–performed the first live reinsurance placements on the platform. The solution made the placement process much easier for complex treaties and transactions, including some of the world’s most complex Cat XoL treaties. When asked about the impact on their business, 76% of the participants said the application has a positive impact on auditability and contract certainty.
