As B3i, the Blockchain Insurance Industry Initiative, prepares to launch as a legal entity in early 2018, independent research shows a strong business model with adoption potential for re/insurers across all lines of business with an estimated average 12% efficiency improvement of cost in scope across the value chain.
Market analysis commissioned by B3i and conducted by Stern Stewart & Co throughout November 2017 with 15 B3i members and 23 Market Testers estimate a $210 million p.a. administrative cost savings from efficiency improvements.
78% of insurers & brokers and 91% of reinsurers surveyed rated the platform as having a specific relevance to being highly relevant to their business.
Based on stated volumes and market size, premiums that will be ceded to the B3i platform are estimated to be in the range of $80 billion – $140 billion.
B3i is following a two-fold strategy of developing the first blockchain prototype into a market-ready product while building on the current membership size to fully penetrate the market.
The report said that the consortium’s fund and activity within the insurance market will likely accelerate as prototypes mature into more compelling minimum viable products and as platforms continue to develop.
With a current membership of 38 insurers, brokers and reinsurers, B3i forms the largest unaffiliated insurance market consortium so far in terms of global market share – measured by gross written premiums.
The testing phase began in October, 2017, and included the creation and management of property catastrophe insurance and reinsurance contracts in order to assess post-placement processes.
The consortium’s latest members include: AIA, AIG, Aon, Chubb, Covéa, Everest Re, Gen Re, Guy Carpenter & Marsh, JLT Re, Leadway Assurance, LocalTapiola, Mapfre Re, Navigators, PartnerRe, QBE Re, SAHAM Assurance, Sava Re, Takaful Emarat, TigerRisk, Trust Re, UnipolSai and Willis Re.
IBM’s Insurance Industry Global Managing Director, Sandip Patel, previously told reinsurance news that the InsurTech wave will take off very quickly as “blockchain is going to do for transactions what the internet did for information and I do believe that in the insurance and reinsurance industry.”