Swiss Re and Allianz pioneer global first cat XoL reinsurance contract on DLT
Re/insurance giants Swiss Re and Allianz have placed the “world’s first” legally binding reinsurance contract on distributed ledger technology (DLT) – paving the way for broader adoption of B3i Re to solve common market problems without adding additional complexity in internal processes.
Enabled by the Blockchain Insurance Industry Initiative’s (B3i) DLT live production network, the placement covers one of the core catastrophe reinsurance contracts of Allianz. It includes key submission parts, final terms and contractual clauses binding to both parties signing this transaction. The process was completed at the beginning of 2022.
The placement followed extensive and industry-wide testing facilitated by B3i, including the enhancement of respective functionalities throughout the last year.
The solution aims to provide companies with a regulatory compliant contract certainty, adhering to their corporate security and technology policies and respective internal requirements. It allows for transparency and trust in the process.
“Absolute contract certainty has arrived,” said John Carolin (pictured), CEO of B3i Services AG. “We are delighted to be able to generate the benefits articulated by our customers and industry front runners Allianz and Swiss Re, and this outcome is a testament to the collaborative way in which our customers shape our products.
“This global first marks another significant milestone in our journey.”
Carolin added: “Our B3i Re solution has matured over the last years and today, with its extended functionality, compliments current market practices, has broad application and blazes the trail of digital transformation. Thanks to the pioneering work by multidisciplinary teams across B3i and its stakeholders, the multitude of benefits, including compliance and efficiency gains, is now available to large and small customers.”
Jan Stoermann, chief underwriting officer at Allianz Re, said: “The signing of the first legally binding reinsurance contract on the B3i platform is a step into the future for Allianz. It showcases the capabilities of the platform which we plan to expand on: we will explore how to further integrate B3i’s platform into our transactional processes such as accounting and claims management.”
Theo Bachmann, head P&C centre reinsurance at Swiss Re, stated: “We are excited by the exchange and signing of an in-force P&C treaty structure and wording via the private & secure B3i network. It is a further step in the journey to modern, efficient, and effective management of (re)insurance treaties.”
