When it comes to blockchain consortia, it appears most people can only name one or two. The R3 consortium is the best-known name right now, although there is also a consortium of Japanese banks exploring blockchain technology. Over in Europe, there is the B3i consortium, which stands for Blockchain Insurance Industry Initiative. It’s an interesting creation, considering Europe isn’t necessarily a hotbed for either blockchain or cryptocurrency right now.
The B3I Blockchain Consortium in a Nutshell
Although most people will always doubt the concept of blockchain consortia working on private ledgers, there are some valid opportunities waiting to be explored. Last year, a couple of major European insurance and reinsurance providers set up their own blockchain consortium, which is known as B3i. It’s an interesting venture, especially when considering how Europe is a relatively quiet market when it comes to cryptocurrency and blockchain these days.
No one will deny most blockchain-based projects revolve around the financial sector these days. In a way, that’s not entirely surprising, considering this industry direly needs some innovation. Cross-border money transfers can be made cheaper and far more efficient using blockchain technology under the hood. There are some improvements to be made in the insurance sector as well, as far as B3i is concerned.
The fact that there is an official Blockchain Insurance Industry Initiative means there is a bright future ahead for DLT in the insurance and reinsurance industry. Coming up with a convenient solution allowing multiple parties to exchange ideas, create new use cases, and pursue proofs of concept is the main bread and butter of this initiative. There are many improvements to be made when it comes to the insurance sector, although none of these changes will occur overnight and without meticulous research.
Blockchain has the potential to be a catalyst for major change in every single industry imaginable. The insurance and reinsurance industry is no different in this regard. Actively pursuing partnerships through this blockchain consortium will help create global industry standards and best practices. Moreover, the consortium will also make strategic investments along the way to help build smarter solutions for everyone involved. It is a fairly ambitious goal, but one that can certainly be achieved in the near future.
Several insurance providers have been exploring blockchain opportunities on their own for quite some time now. It is evident B3i will continue to grow and attract new members for the foreseeable future. It is also evident there are a lot of improvements to be explored, although nothing has been set in stone just yet. Increasing transparency, reducing fees, and providing cross-border solutions are some of the potential use cases for blockchain technology right now.
No one will be surprised to learn that the initial members of the R3i blockchain consortium are some of the biggest names in the industry. Allianz, Aegon, Munich Re, Swiss Re, and Zurich are the founding members of this initiative, which is pretty intriguing. All of these companies have shown increasing interest in blockchain technology over the past few years. It will be interesting to see how things evolve for the B3i consortium over the coming months and years.