The Blockchain Insurance Industry Initiative (B3i) has announced its transition to an independent legal entity.

15 global insurers and reinsurers came together in late 2016 for a collaborative effort to explore and test the potential of blockchain and formed B3i. The founders of B3i have now incorporated B3i Services AG in Zurich, Switzerland in a bid to provide insurance solutions on a blockchain platform which will significantly improve efficiency across the value chain of the re/insurance industry.

Gerhard Lohmann, CFO of Reinsurance, Swiss Re has been appointed as chairman of the company.

"The transition of B3i from consortium to independent company is a concrete step forward to realising the enormous potential of blockchain for the insurance industry,” Lohmann said.

In its official release, B3i said that it completed its first product, a blockchain prototype for property cat XoL reinsurance contracts, in mid-2017. A group of 38 insurers, brokers, and reinsurers then tested the product throughout October 2017. The prototype demonstrated that transactions could become quicker, more efficient, and more secure than with current methods. The first live trades on the platform are expected by the end of this year.

The incorporation as a legal entity marks the starting point for the next stage of the initiative, B3i said, adding that it can now streamline the development, testing, and commercialisation of blockchain solutions.

B3i Services AG also revealed its plans to raise additional funds from a wide spectrum of insurance industry participants over the coming months. The objective is to create an ecosystem of products and services developed “by the market, for the market”.