The Blockchain Insurance Industry Initiative (B3i) has been appointed to develop Distributed Ledger Technologies (DLT)-based solutions for the management of inter-pool reinsurance contracts.
Six nuclear pools in North-Western Europe, namely France, Germany, Spain, Switzerland, UK and the Nordics (Sweden and Finland) hope to benefit from increased contract certainty, process efficiency and real-time portfolio oversight.
Nuclear pools act as the technical underwriting vehicles in their respective domestic markets for the pooling of net capacity for nuclear risks.
The management of these pools is highly complex, and the international scope of the business, via the inter-pool exchange of risk, means that the insurance transactions are subject to a wide variety of processes and regulatory frameworks.
Accordingly, B3i will aim to develop a DLT-based application for the management of inter-pool processes in time to launch for the January 1st, 2022 renewals.
The solution will be designed to accelerate financial closing, with a shared database to give the pools access to a structured dataset that can improve risk analysis and audit/compliance performance.
The application is built on B3i’s Fluidity platform and a first release will be ready for testing in Q4 2021.
“We are very pleased to have the opportunity to collaborate with the nuclear pools to deliver a futureproof solution that meets their business requirements,” said B3i CEO John Carolin.
“Insurance pools are an ideal use case for DLT-based solutions. Thankfully we’ve hit the ground running – our core platform Fluidity already includes many reusable components, thereby accelerating our delivery and reducing costs,” Carolin continued. “We also look forward to the opportunity to extend this pool risk transfer solution to domestic insurance pools and other lines of business, such as earthquake insurance.”
Caj Weckström, the Pools’ Project Manager and Nordic Pool Manager, also commented: “The pools are excited to be working with B3i who we see as the global leaders in the DLT solution space. Their experts have patiently listened and worked with us during the procurement process and truly understand our requirements.”
“Together with their analytical approach, we are confident that B3i will be able to design an innovative solution for us. Given its scalability, it could also be available to the 28 international pools that exist today and others that will form in future as the civil nuclear industry develops into new countries.”