©B3i 2018

B3i development and priorities
©B3i 2018

Agenda 1. Background to Blockchain and B3i

2. Current product and future applications3. Current priorities4. Future prospects

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©B3i 2018

What Is Blockchain? 4 Technologies In 1

Distributed ledger

 Decentralized, peer-to-peer network Append-only distributed database - immutable Replicated to all participants on the network Shows current status as well as status over time

Smart Contracts

 Programmable contrac

logic that is automaticaconditions are met

 Ideal for arrangements 

signed, self-executing, 

Consensus

 Consensus is the proce

verified 

 Decentralized consens

version-of-the-truth“ (aldistributed ledger)

Cryptography

 Ensures that transactions are secure, authenticated & 

verifiable

 Verifies participants' privacy while the ledger is shared

Blockchain is another way of producing, storing, managing and sharing data as a distributed and secure rec

transactions

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©B3i 2018

 Founded to explore Blockchain Test hypothesis of improving efficiency Prototype - Property Cat XoL Industry network effect “By the market, for the market”

B3i – A True Industry Collaboration

Founding members o

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©B3i 2018

B3i – TimelineOct 16Founded

Dec 16Expanded to 15 members

June 17Prototype completed

Sep 17Monte Carlo launch

Oct 17Joined by 23 mark

1st Product

Property CAT XL 

Platform

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©B3i 2018

B3i will make insurance more relevant, accessible and a

through the power of the ecosystem founded on Bloc

technology

B3i’s Vision

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©B3i 2018

Objectives Deliver Strategic Needs

Key requirements to meet strateg

 Services

EfficiencyImprove efficiency of oand save (administratGrowthEnsure profitable growthrough market acces(network), innovation businessQualityIncrease quality and tthrough common standata & insight, resilienstrengthened security

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The B3i Ecosystem

 Services

Industry ecosystem developethe insurance market and estpartnerships for further solutioEstablish the platform core wthe industry to start the netwo

Commercial

insurer

Information

services

Risk

managers

Marketplace

Reinsurer

Transactions

services

Administration

Smart

contracts

Data

intelligence

KYC

Risk pools

Capital 

market

Broker

...

KEY CUSTOMERSB3I SERVICES

Tech.

providers

Insurer

Financial

institutions

...

Settlement

Consumers

Consultancy

Services

Establish transaction service contract handling to create inEstablish the B3i core platform an

8 B3i Development and Priorities
©B3i 2018

Information

services

Risk

managers

Marketplace

Reinsurer

Transactions

services

Administration

Smart

contracts

Data

intelligence

KYC

Risk pools

Commercial

insurer

Capital 

market

Broker

...

KEY CUSTOMERSB3I SERVICES

Tech.

providers

Insurer

Financial

institutions

...

Settlement

Blockchain

Core

Consumers

Consultancy

Services

Value Proposition: By The Market, For The Market

Growth playIncreasing access for cplayers along value cha

Growth playDriving (re)insurance transformationfor and with the industry

Growth playCatalysing new (rebusiness models

QualityCollaborating to design, ensure qenforce industry standards

Efficiency play

Improving transparency, effectiveness, 

cost efficiency and cash flows

Efficiency play

Sharing across the value chain for the 

common benefits of the industry

Efficiency play / Quality

Accelerating time to process for players 

along whole (re)insurance value chain

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©B3i 2018

Three development phases

Phase Build the platform Establish the ecosystem Levera

Monetise product roadmap Realise economics of scale Generate v

B3i network ef

Improved efficiency and quality

Customer

Additional revenue potent

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©B3i 2018

Agenda 1. Background to blockchain and B3i

2. Current product and future applications3. Current priorities4. Future prospects

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Insurance Opportunity

Mission

Provide protection

Reality

Paperwork, accounting and rec

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Insurance Value Chain Full Of Frictional Costs

Policy 

Holder Reinsurer

Overly complex and expensive

Inefficiencies

 Paperwork Lack of standards Cumbersome signoffs

Leading to further inefficiencies

 Delays Manual Reconciliations

Creating Risk & Costs

 Credit Risk Cash flow inefficiencies

Insurer

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©B3i 2018

Opportunity To Reduce Friction

Today: Information exchange via traditional ledger Tomorrow: Information exchange via shared ledger on 

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©B3i 2018

B3i’s First Product: A Fully Functional Prototype To Solve Industry Challenges

Draft A New Contract A shared single version of truth All in one contract

Negotiating & Signing A Contract

 Digital signature Full inclusion of broker

Automated Premium Calculation

 Stronger cash & credit management

Reinsurance 

Blockchain

Platform

Reinsurance 

entity

Insurance 

entity

Broker

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Positive impact on

 Operational Efficiency and Risk Reduction Quality and Integrity of Data Working Capital Improvement Foreign Exchange Management Operational Risk Combined Ratio Cash Flow Acceleration Contract Certainty

⟶ ~30% Process Efficiency Gain

B3i’s First Product

Reinsurance 

Blockchain

Platform

Insurance 

entity

Broker

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©B3i 2018

23 Market Testing Participants Joined 15 Members

Market testing phase to provide feedback on functionality and future use cases

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A Truly Global Market Test

885 141 111 288 138 

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An independent market analysis, conducted by Stern Stewart & Co in November 2017, surveyed 38 B3i member and testing participant

and discussed with all 38 participating firms and generally considered very positive for the consortium. 

B3i and Market Potential: Significant Opportunities (1) Survey participants reported the costs impacted and percentage saving by B3i platform usage; broker savings excluded as most brokers chose not to respond to that question

Largest consortium

⟶ Participants view B3i as the most significant and valuable 

DLT consortium: The 38 companies represent 27% ceded and 51% reinsurance premiums market share.

High relevance

⟶ Over 80% of those surveyed perceive platform as relevant.

Significant Potential

⟶ Participants estimated an initial annual 

30 billion premium to flow through the pan aggregate of USD 210 million annufrom streamlining the administration pr

Factoring in further market adoption, thestimated as USD 80-140 billion and Urespectively.

Desire to adopt

⟶ On average, most respondents conside

early adopters. 

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Challenges For Scaling Up

Transformation

 Wait-and-see attitude within management Complete overhaul vs. Step-by-step overhaul transform

⟶ Management commitment and successful use cases 

needed

Legislation & Regulation

 Regulation authorities follow a wait and see approach Legal uncertainty

⟶ Seek legal counsel and regulators, address all 

possible legal solution, continuously monitor legal verdicts and new regulatory requirements

User Adoption & Social Acceptance

 Social acceptance is all but cert

potential job losses and failing b

 Resistance of consumers

⟶ Internal and external cha

economic and psycholog

Technology

 Application of the same Blockchain technology Integrating AI and Big Data Technical progress is not yet fully satisfactory

⟶ Building the industry wide standard on existing 

standards like ACORD

Collaboration

 Building up trust between rivals  Benefits of Blockchain are maxim

involved in the network

⟶ Extensive and open colla

insurers, reinsurers and winning collaboration mo

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©B3i 2018

Agenda 1. Background to blockchain and B3i

2. Current product and future applications3. Current priorities4. Future prospects

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©B3i 2018

B3i Current Priorities

Incorporation Limited company ("Aktiengesellschaft") set-up in Switzerland in progress (completed 23 March); consists of “Round 1” fundraising participants from the founding members

Sales & Marketing

Community membership and cbusiness model and on-boardincampaigns; conferences and e

Development

‘Codex 1’ – an industrial strengaccept contracts by Sep 2018

Partner Marketing

Private Placement Memorandum preparation as part of a “Round 2” funding to attract further investment from the founding companies and a wide industry population –Investment round just commenced; investor roadshows

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©B3i 2018

Future B3i targeted product and service offering

Transaction platform 

Par

Deployment consultingIntra group reinsuranceSupport services

Core platform accessP&C, L&H reinsuranceCommercial insurance

Services

Products

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©B3i 2018

Product Roadmap

B3i core components Lines of business Functionalities

2018 2019 2020 2021 2022 2023 

Continued product evolution

Property and casualty reinsurance Bureau and pool businessInteroperabilityLife and health reinsurance

PropertyCat XoL

Commercial insurance

Common framework

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©B3i 2018

Longer Term Priorities

 Ecosystem, governance an B3i integration consulting

Partnership support

 Incubation

 Reinsurance (P&C, L&H) Internal retrocession Enabling & adoption services

B3i (re)insurance transaction services

 Core (standards, data model etc.) Framework Interoperability Community

 Commercial insurance ILS B2C

B3i ecosystem

 Applets 

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High-Level Partnership Journey

Stage 1: 

Ideation

Partner brings concept. Basic 

research and conception. 

Stage 2:

Project Selection

The decision to solution on the 

ecosystem. 

Stage 3: 

Product Development

Building the product or service. 

Brin

mark

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©B3i 2018

Agenda 1. Background to blockchain and B3i

2. Current product and future applications3. Current priorities4. Future prospects

27 B3i Development and Priorities
©B3i 2018

Drivers

Future Perspective

Data VolumeFinTechTechnologyCustomer NeedsDesire for Digitalization(...)

Today: Pen & Paper Tomorrow: Digital Platform

Silos

⟶ No integrated systems

Pipeline

⟶ Manual handover between parties

Inefficient

⟶ Paper based transferring of risks

Platform Economy

⟶ Business benefit incr

power of the network

Standards

⟶ Setting the standard 

common language to 

Technology

⟶ Shared infrastructure 

economies of scale

Insurance Industry Is Evolving Towards Digital Platform Ecosystem 

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A Future Blockchain-enabled LandscapeReduced administrative costs and friction

➔ Reduced friction through secure, shared version of the truth 

(contracts & data)

Codifying complex contracts

➔ Codified logic (‘Smart Contract’) where feasible. Enforced 

version control

Regulatory transparency

➔ Openness and continuous monitoring and auditing

Digital world & paper processes

➔ Future ready, standardized data excha

participants

➔ Access to rich data set to assist mode

Trust, digital contracts and data

➔ Trust through immutability, contract ce

transparency of data

➔ Seriatim data access whilst preserving 

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©B3i 2018

What Could the Future Look Like?

Customers Ecosystem Se

 Car main Road-sid 2nd hand 

 Machiner Supply c Parametr

... 

Core Risk Ser

 Providing  Claim ad Fraud ma Risk pric Risk prev

... 

Smart Device Network

 Self-driving cars Drones/Satellites 3D mapping trolleys

...

Smart Sensor Network

 Speed/Acceleration sensor Industrial internet Fire/Water/Flood sensors

Corporate

&

Retail

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31 ©B3i 2018 B3i Development and Priorities

Disclaimer

No warranties / exclusion of liabilityAll information contained in this presentation is provided “as is” and no warranties are gexpress or implied, as to the reliability, accuracy, suitability or completeness of the infordisclaims any liability for any use, or misuse, of the information presented in this preseloss or damage which may arise from access to or reliance on information published in This does not affect any mandatory legal rights that cannot be excluded under applicab