# Process reinsurance contracts via distributed ledgers

> B3i Services AG, founded by major insurers including Allianz, Munich Re, and Swiss Re, developed a blockchain platform for administering reinsurance contracts. Utilizing Hyperledger Fabric, the initiative deployed smart contracts to automate policy management and claims processing across an international broker network. Following initial pilot deployments and incorporation in Zurich, the consortium ceased operations after filing for insolvency in 2024.

**Sector:** Tertiary sector · **Industry:** Insurance · **Organisation:** B3i Services AG, Allianz, Aegon, Munich Re, Swiss Re, Zurich Insurance Group, SCOR · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/b3i-services-rueckversicherungsvertraege-geteilte-ledger-abwickeln

## Documentation status

- **Project status:** Operator insolvent
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

B3i Services AG was founded by leading primary insurers and reinsurers such as Allianz, Munich Re and Swiss Re to standardise the management of reinsurance contracts via a shared DLT platform. By using smart contracts on Hyperledger Fabric, complex contracts like catastrophe excess of loss coverages could be stored digitally and tamper-proof. This shared data basis avoided repeated manual reconciliations between cedents, brokers and reinsurers and reduced operational friction losses.

The Blockchain Insurance Industry Initiative B3i started in 2016 as a joint consortium of global insurers and reinsurers and was incorporated as an independent public limited company in Zurich in 2018. The technical development team in Munich developed the Fluidity platform based on the open-source DLT framework Hyperledger Fabric. The focus was on prototypes for Cat-XOL and Property-XOL contracts, which were tested in trial phases together with an international broker network. The architecture allowed participating institutions to exchange confidential contract data encrypted and variably per partner without relying on central intermediaries. Despite technical feasibility and successful pilots, a long-term economic breakthrough was not achieved, leading the operating company to file for insolvency in 2024.

## Benefits

- Reduction of administrative costs in reinsurance exchange
- Faster processing of claims
- Increased transparency between brokers, primary insurers and reinsurers
- Shared data basis for all involved contracting parties
- Tamper-proof history of contract changes and claim notifications
- Shortening of turnaround times in contract reconciliation
- Elimination of manual and error-prone spreadsheet reconciliations
- Real-time access to consolidated contract statuses

## Challenges

- Difficult integration into existing proprietary legacy IT systems of insurers
- Competitive situation among consortium partners regarding strategic direction
- High coordination effort to agree on uniform data standards
- Complex legal and regulatory requirements in the international financial sector
- Ensuring long-term financing of an industry-wide consortium
- Need to build technological know-how around distributed ledger systems

## Technology foundation

The platform was based on the distributed ledger framework Hyperledger Fabric, which as a permissioned network enabled the establishment of private data channels between selected business partners.

## Sources

- [Insurers and reinsurers launch Blockchain initiative B3i](https://www.munichre.com/en/company/media-relations/media-information-and-corporate-news/corporate-news/2016/2016-10-19-insurers-and-reinsurers-launch-blockchain-initiative-b3i.html)
- [B3i insurance consortium confirms incorporation](https://www.ledgerinsights.com/b3i-incorporates-blockchain-insurance/)
- [Insurance DLT consortium B3i plans for commercialization](https://www.digfingroup.com/insurtech-blockchain-5/)
- [Blockchain Insurance Industry Initiative B3i filed for insolvency](https://beinsure.com/news/blockchain-insurance-industry-initiative-b3i-filed-insolvency/)