B3i to develop DLT reinsurance solutions for European nuclear pools
The Blockchain Insurance Industry Initiative (B3i) has been appointed by European nuclear pools to develop distributed ledger technologies (DLT)-based solution 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) will 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.
B3i explained that 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.
The company will develop a DLT-based application for the management of inter-pool processes to generate immediate and scalable benefits in placement, binding, and in the medium term for technical accounting and claims when it is launched for the 1st January 2022 renewals.
The solution will also be designed to accelerate financial closing and a shared database will give the pools access to a high quality and structured dataset to improve risk analysis and audit/compliance performance.
The application will be built on B3i’s Fluidity platform and a first release will be ready for testing in Q4 2021.
John Carolin (pictured), chief executive of B3i, said: “We are very pleased to have the opportunity to collaborate with the nuclear pools to deliver a futureproof solution that meets their business requirements. 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. 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, stated: “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.”
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