Insufficient Funding: B3i could not attract the necessary capital to sustain the platform, and this was ultimately a factor in the company’s decision to cease operations.

B3i Tech Innovations was founded in 2016 as a collaboration between various insurers and reinsurers to explore the potential of Distributed Ledger Technology (DLT) within the insurance industry. During its first few years, the company raised tens of millions of dollars in funding and attracted the support of some of the world’s largest insurance companies. The company launched its first product, a blockchain prototype for property cat XoL reinsurance contracts, in mid-2017. This product demonstrated that blockchain-based systems can improve efficiency for re/insurance companies and their customers by dramatically increasing speed, transparency, quality, security and cost.

B3i Tech Innovations: How They’re Disrupting the Insurance Sector

The company also worked on a range of other projects, including a project to test the effectiveness of blockchain solutions for parametric insurance, which provides payouts based on pre-specified criteria such as wind speed and rainfall measurements. The company’s work on this project highlighted the need for technological alignment and collaboration in order to maximize the benefits of blockchain technology.

Despite the failure of B3i, the technology remains intriguing and it will be interesting to see whether anyone can break the code and unlock the potential efficiencies that the company claimed were achievable through the implementation of DLT within the re/insurance sector. However, Mumenthaler points out that it will likely require that the entire insurance community embrace this kind of solution in order for it to be successful.