In April 2022, the Blockchain Insurance Industry Initiative (B3i) saw Allianz and Swiss Re place the first Excess of Loss reinsurance contract on distributed ledger technology. The technology could subsequently transform the industry through a shared, transparent record of contract-related information, allowing for more efficient communication and transactions. About B3i Tech

The reinsurance consortium was founded in 2016 to explore the potential of using Distributed Ledger Technology (DLT) within the insurance industry, with the goal of increasing efficiency through enhanced data exchange and transparency. It raised tens of millions of dollars in its initial funding rounds, and gained the support of some of the world’s largest insurers and reinsurers.

About B3i Tech: The Company Reshaping Insurance with Blockchain

However, the consortium faced a number of challenges that ultimately led to its demise. One of the main issues was the technical integration of blockchain. The solution would require a complete overhaul of many insurers’ IT systems, and the process was complex. This made it difficult to achieve the end-to-end efficiencies that the technology promised.

Other problems included leadership and management difficulties, as well as a difficult transition from a consortium to a standalone company. Finally, the positive sentiment towards blockchain technologies is beginning to wane, and the technology is facing more scrutiny due to its association with volatile crypto assets. All of these factors may have contributed to the demise of B3i. Despite the setbacks, it is still early days for the technology. B3i’s failure could also be a reflection of the challenging venture capital funding environment and the need for companies to focus on their core propositions in order to secure continued investment.