A blockchain initiative for the insurance industry, that includes XL Catlin as one of its founding shareholders, has incorporated in Switzerland.

The Blockchain Insurance Industry Initiative, known as B3i, was set up as a collaboration between 15 global insurers and reinsurers to explore the potential of blockchain in the industry.

B3i aims to improve efficiencies “across the value chain of the reinsurance and insurance industry” with improved speed, transparency, quality, security and cost savings. It has completed a blockchain prototype for property cat XoL reinsurance contracts. The first live trades on the platform are anticipated later this year.

Having incorporated in Zurich, as B3i Services AG, the company intends to raise additional funds from “a wide spectrum of insurance industry participants” over the coming months as it moves its initiative forward.

Gerhard Lohmann, chief financial officer of reinsurance at Swiss Re, has been appointed as chairman of B3i. He said: “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.

“Personally, I am very excited to be at the forefront of this innovation that has the capability to transform the industry and help make insurance more affordable, accessible and attractive for market segments that are currently disenfranchised, or underprivileged.”

Other founding shareholders of B3i include Hanover Re, Liberty Mutual, Tokio Marine and Ageas.

Ken Marke, who is on the B3i five-strong executive management team, last month told The Royal Gazette that there was a compelling case of the insurance industry to make use of blockchain technologies. He added: “With 38 companies having already been involved in the market testing of our prototype, we have seen an appetite to use the application.”