Insurance firms form blockchain startup in Zurich

The Blockchain Insurance Industry Initiative (B3i), which is made of up 15 leading insurance companies, including Swiss Re, Zurich, Munich Re, Allianz, Generali and Aegon, has set itself the goal of advancing blockchain technology in the insurance industry. B3i has now formed a startup in Zurich, B3i Services AG, which will focus on commercializing blockchain solutions for the re/insurance industry. 

Last year, B3i presented a blockchain prototype for the reinsurance market: a smart contract management system for processing transactions within a blockchain network. According to B3i, the platform can achieve efficiency gains of up to 30 per cent, with brokers, insurers and reinsurers alike benefitting from lower administrative costs and more attractive rates and fees. The platform has been tested by several insurance firms and is set to be launched by the end of 2018.

The new startup in Zurich is expected to advance similar solutions. As an independent company, B3i Services AG can help in developing, testing and commercializing blockchain solutions. The startup will raise additional funds insurance industry participants over the coming months, with the goal of creating “by the market, for the market” products and services.

Gerard Lohmann, CFO of Swiss Re, has been appointed chairman of the new company. “The transition of B3i from consortium to independent company is a concrete step forward to realize the enormous potential of blockchain for the insurance industry,” Lohmann said.

The Canton of Zurich’s Office for Economy and Labour assisted B3i Services AG set up business in Zurich. According to government councillor Carmen Walker Späh, the new startup strengthens “Zurich’s importance as an insurance location and a location for digital innovation”. A statement from the Canton of Zurich points out that a “lively fintech innovation ecosystem, garnering worldwide attention” has developed in Zurich in recent years.