The Institutes RiskStream Collaborative™, the risk management and insurance industry’s largest enterprise-level blockchain consortium, announced that it will work jointly with B3i Services AG, a global industry-led blockchain initiative, in an open industry-wide Lab series that will launch on April 12, 2022. This Lab series will be dedicated to exploring a use case application that automates the insurer and reinsurer parametric homeowners’ insurance policy process by using an oracle (digital feed).
With advancement of weather data sources and a need for increased automation and efficiency in the insurance industry, there has been a renewed interest in parametric insurance exploration using blockchain technology. Parametric insurance is a non-traditional insurance product that offers pre-specified payouts based upon a trigger event, such as wind speed and rainfall measurements. This collaborative Lab series will explore an interesting new approach to parametric insurance across homeowners’ insurance and reinsurance that leverages blockchain technology. The Lab is unprecedented as it brings together the two largest blockchain networks in the insurance industry, RiskStream’s member network and B3i’s partner and customer network.
“We are excited about working together with B3i,” said Bill Keogh, Non-executive Chair of RiskStream Collaborative. “RiskStream and B3i not only share expertise in this cutting-edge technology but also understand the insurance industry’s needs. By leveraging our complementary experience and networks, we are better positioned to bring together a larger and broader group of industry stakeholders to explore and assess this blockchain use case’s value.”
The goal of this innovative network opportunity is to bring industry stakeholders together to review the business process, identify opportunities, and assess if this use case has potential value in building out a blockchain prototype. RiskStream Labs series with B3i enables the industry to quickly explore, vet, and collaboratively decide whether to advance this blockchain initiative based on stakeholder support. If the participants decide this use case has value, it may move beyond design and prototype to production. The partnership between RiskStream and B3i also offers opportunities beyond the identified use case to address other areas of reinsurance for the benefit of the global industry.
John Carolin, CEO of B3i, added, “A number of B3i shareholders are members of the RiskStream Collaborative, and many of our customers and shareholders have longstanding business relationships with RiskStream members. Together with RiskStream, we have sought opportunities to serve them and the wider insurance industry. With this Lab series, we look forward to taking these next steps, deepening this relationship and are excited about validating this use case.”