B3i, the blockchain insurance coverage enterprise backed by greater than twenty insurers and reinsurers, is to close down. The corporate was included in Switzerland in 2018, and its funding got here fully from insurance coverage companies. An lack of ability to shut an additional funding spherical triggered the insolvency. Its most just lately introduced funding was a Collection B in late 2020 of an undisclosed quantity, following a Collection A of greater than $20 million.
The founding insurers have been Zurich, Swiss Re, Generali, Allianz, XL Innovate, SCOR, Aegon Blue Sq., MAPFRE and Achmea.
A key query is whether or not this failure can be attributed to a different giant consortium, the expertise, timing, agility, or one thing else. Consortia are notoriously exhausting.
A press release on the web site reads, “The administrators, following session with the shareholders, have collectively concluded that there was not enough assist to proceed with the enterprise at this stage.”
In the meantime, one in every of its shareholders Allianz issued a press release: “Whereas the B3i consortium of 20 insurers is not going to proceed, the collaboration has generated a number of profitable Blockchain purposes Allianz now makes use of. We proceed to imagine within the potential of Blockchain expertise and are on the lookout for methods to additional develop it.”
Late final 12 months, B3i introduced that it had landed a venture to assist handle nuclear reinsurance for six European nuclear swimming pools. Extra just lately, it began a collaboration with the US insurance coverage consortium RiskStream for parametric insurance coverage.
Again in 2018, RiskStream and B3i appeared to compete with one another. RiskStream had deliberate a significant outdoors funding spherical in 2019, however that did not materialize. As a substitute, RiskStream progressed slowly by getting assist from insurers on a venture and piecemeal foundation. In distinction, B3i landed the funding.
Within the early days of enterprise blockchain, insurance coverage was the sector that led. That is as a result of there are quite a few cases the place the identical insurance coverage information will get replicated between events reminiscent of brokers, brokers, insurers, and reinsurers. And each time there is a mismatch, it entails reconciliation processes that are incessantly guide. In concept, blockchain solves that.
Some insurance coverage initiatives are progressing, together with an enormous insurance coverage dealer IMA launching a Certificates of Insurance coverage answer this week and Allianz’s cross border claims answer final 12 months.
It is not simply insurance coverage
Final month, one other of the earliest enterprise blockchain startups, we.commerce for commerce finance, additionally shut down. It was backed by a dozen large banks and IBM.
As an outsider, each we.commerce and B3i had one key marker in widespread. Inside a few years of founding, each changed their chief, who had business enterprise expertise, with a extra technical officer. Not like B3i, we.commerce by no means handed out the CEO job title, giving the impression that the backers of the commerce finance agency have been within the driver’s seat on the element degree.
We plan to replace this story.