B3i Re – Managing Catastrophe Excess of Loss on DLT
B3i Reinsurance (B3i Re) is our first application built on top of the B3i Fluidity platform. The initial version supports the electronic placement and administration of Property Catastrophe Excess of Loss (Cat XoL) treaties, from structuring the submission to negotiating, binding, endorsing and technical accounting. The application has been developed in close collaboration with Brokers, Insurers and Reinsurers to ensure that the product matches all the requirements and brings value to all the stakeholders.
Future versions, planned for March 2021 and September 2021 will introduce Claims Management features and extend to additional reinsurance types (both non-proportional and proportional) and lines of business.
What does the application do for you?
B3i Reinsurance has been developed with Underwriting Requirements and it is capable of structuring the majority of Cat XoL contracts which are transacted in the market today, providing customers with the ability to negotiate and place treaties leveraging the benefit of Distributed Ledgers.
Using structured data, the contract wording is not just digitized, it is represented through a number of data elements, such as layers and sections with included and excluded coverages, premiums and instalment payment plans. This makes it easier to apply the contract terms as executable computer code, streamlining post-binding processes (such as technical accounting) and realising the straight-through processing potential.
In addition, the Distributed Ledger brings a unique auditability value enabling customers to compare the changes between contract versions helping them tracking the negotiation. Given that there is always a single version of the truth, contract certainty is an inherent part of the process and does not need to be achieved afterwards.
The embedded messaging functionality allows customers to directly communicate with each other without having to switch context or leave the application.
B3i Reinsurance has been developed by the Market, for the Market. We will continue cooperating with all the Market stakeholders to design new features and enrich its capabilities to generate and bring additional value for everyone involved.
Should you be interested to join, please get in touch with us.
- Initiate conversations and market interaction using enhanced messaging
- Document sharing
- Portfolio management functionality
- Advanced Property CAT XoL contract structuring
- Unlimited number of layers and nested sections
- Flexible definition of Scope of Coverage, with inclusions and exclusions
- Clause library
Contract & workflow
- Quoting/Binding market placement
- Negotiation orchestrations
- Contract negotiation version comparison
- Placement status overview
- Contract export in PDF
- Contract audit trail and lifecycle
- Generation of TA entries based on contract terms; e.g. premiums, commissions
- Distribution of TA entries amongst treaty participants
- Reversal of endorsed TA entries
- Ritablock embedded into B3i Re enabling integration with Legacies and ACORD
What is Distributed Ledger Technology, and why is it suited to Insurance?
Distributed ledger technology (DLT) is a digital application for recording the transaction of assets, transactions or value in which the related data and associated details are recorded in multiple places at the same time. Unlike traditional databases, distributed ledgers have no central data store or administration functionality. In effect, all parties in the network have the same copy of the data or ledger. Hence the description – distributed ledger.
At B3i, we are working with industry partners to use and embed this technology into various applications for the insurance market which enable users to achieve improvements in efficiency, cost and speed.
Key features of DLT:
- In a Distributed Ledger, each node processes and verifies every item, thereby generating a record of each item and creating a consensus on each item's veracity. A distributed ledger can be used to record static data, such as a registry, and dynamic data, i.e., transactions.
- Smart Contracts are capable of automatically validating a condition and it will automatically determine whether an 'asset' should go to a nominee or back to source, or a combination thereof. As part of the process the decentralised ledger also stores and replicates the document ensuring security and immutability.
- Immutability is the ability for a Blockchain ledger to remain a permanent, indelible, and unalterable history of transactions. Crucially immutability has the added benefit of ensuring trust and integrity to the data businesses record everyday.
- Consensus ensures relevant information is shared to only defined parties across a node; effectively only parties involved in a contract have access to the same information as it is updated.
- Secure distributed ledger technology ensures greater security for transactions on the node due to its decentralised nature and immutability.