B3i goals

As an industry wide initiative B3i shares the following goals:

� A shared vision on the future insurance value chain

� Refocus on what really matters in insurance: Less Admin, More Insurance and great customer service

� Operational risk reduction with less manual reconciliation and higher process automatization

� Efficiency gains can be up to 30 % and conservative expectations lead to combined ratio improvement of 0.5 %

� Privacy and confidentiality on data and smart contracts are guaranteed

� Collaboration is key to success as Your Business Case is our Business Case

Prototype development

The short term focus of the platform is on handling reinsurance contracts on a state-of-the-art distributed ledger

� From April 2017 to September 2017 a dedicated, combined team drawn from B3i member firms bringing diverse and complementary skill sets has produced a working prototype. The Prototype is covering the core functionality required to enable a distributed smart contract management system for Property Cat XoL contracts

� The technical architecture is already close to a production-ready solution and the team is preparing for feature enhancements of the prototype and a first deployment into production in 2018

Blockchain Insurance Industry Initiative

Today’s insurance industry processes are overly complex, often manual, error-prone and expensive. The whole insurance industry value chain is ready for a change.

A group of fifteen European, American and Asian insurers and reinsurers participating in the B3i initiative has been working on a joint distributed ledger for reinsurance transactions driven by Blockchain technology.

With this solution we have proved the feasibility of building an end-to-end re/insurance industry platform with distributed ledger technologies.

Premium

� Frictionless integration of automated premium calculations

� Stronger cash and credit management on reinsurer side: less open receivables, unapplied cash

� Clarity and certainty in foreign exchange, less FX risk

Claims handling

� Frictionless integration of automated claim calculations

� Shared version of the truth – zero reconciliation efforts

� Dashboards to link every payable / receivable to a reported claim back to the actual contract

� Stronger cash management on cedent side

Draft a new contract

� All-in-One contract setup solution from drafting, negotiation to signing, no need for email, excel, word, pdf and wet-ink signatures

� The B3i data model is based on the ACORD Insurance Industry Standard which is already widely accepted by the insurance industry

� A shared single version of truth with all parties reduces reconciliation

� Operational risk reduction and 100 % contract certainty

Negotiation and signing a contract

� Contracts digitally signed using cryptographic methods

� Digital signature gives 100 % contract certainty

� Digital signature makes it easy to identify exactly which wording was signed, when the contract was signed, and by whom

� Negotiation support is on the 2018 development roadmap

� Negotiation will feature full inclusion of the broker community

Hyperledger Fabric Technology

Due to its maturity Hyperledger Fabric has been chosen as the foundational DLT technology for the B3i network, providing the following features and architectural principles:

� Excellent privacy and security features

� Suitability for complex business logic and a modular software design.

� Out of the box supports for smart contract lifecycle management

� Pluggable components providing flexibility to consensus algorithms and other features

� New industry best practices developed in respect of the novel technology stack applied

Technical achievement

We proved that we can successfully face the challenge of preserving privacy while still reaping all the benefits that come with distributed ledger technology.

� Data storage model based on the ACORD Standard

� Contract Section Lifecycle as central business logic component

� State-of-the art best practices applied for continuous integration of software development

� World-class academic researchers in cryptography and network security contributed and cooperated with top business architects to ensure privacy and confidentiality on the shared distributed industry ledger

� Hybrid development team, formed by B3i members and our technical delivery partner IBM

� Feature complete solution delivered on time, despite challenges coming from the evolving Hyperledger Fabric platform (From alpha to 1.0 release in the main phase of development)

Architectural overview

Each organization has a private ledger for storing their own contract elements and data.

All organizations also participate in two shared ledgers:

� The shared Master Data ledger contains common and agreed master data including public company information and common contract clauses.

� The shared Communication ledger is cryptographically secured and stores the communication used to consent on the state of the private organization ledgers. Only counter-parties can see the content and destination of the communication.

Online: www.b3i.tech Twitter: @B3i_tech

© 2017 B3i All rights reserved. 08-Sept-2017

To build an efficient worldwide industry platform for market participants to more easily cede, handle and trade risks.

MASTER DATA

CEDENT

COMMUNICATIONCOMMUNICATION

REINSURERBROKER

PRIVATEPRIVATE SHARED