Generali, to explore the potential of Distributed Ledger Technology in the insurance sector, has joined the Blockchain Insurance Industry Initiative B3i. Since its launch in October 2016, the initiative has received increasing attention and with the accession of new participants from Asia, Europe, the United States and South America has reached a global reach.
The technology in question can help reduce fraud and corruption, reduce transaction costs, guarantee privacy and globalize insurance services. At the basis of the model are smart contracts, software that replace traditional documents and allow for the creation of legal relationships between subjects without the involvement of notaries, lawyers, and indeed insurance groups.
In a spirit of mutual cooperation, participants in the B3i initiative will explore how DLTs can make data exchange between insurance and reinsurance companies more efficient. Participants will be able to carry out a pilot project to share information contained in reinsurance contracts with each other. If Blockchain technology proves to be an effective tool, the insurance sector could be transformed thanks to the creation of a shared and transparent register of contractual information and the rationalization of communications and transactions, with the consequent improvement of industrial and media relations processes.
To date, there are fifteen participants in the B3i initiative: Chmea, Aegon, Ageas, Allianz, Generali, Hannover Re, Liberty Mutual, MunichRe, Rga, Scor, SwissRe, Sompo Japan Nipponkoa Insurance, Tokio Marine Holdings, XL Catlin and the Group Zurich Insurance.
“We are thrilled to have joined this new initiative and want to actively participate in it - commented Steve Hales, head of connected insurance of the Generali group - This represents another fundamental step confirming our commitment to create value for our customers, embracing a new technology which in turn can be used to reduce risk and improve efficiency. The Blockchain initiative is particularly significant in the insurance industry, where the secure and efficient exchange of information can take advantage of new technologies and potentially game-changing applications. As a leader in continental Europe, we are convinced of the need to continue our path of innovation to help Generali customers improve and make their lives easier".
Paolo Ribotta, head of Generali global corporate & commercial, added: “We believe that B3i represents a key initiative for the insurance system and that it could contribute to greater innovation in our sector and open up unexplored opportunities. We have invested in the transformation of our Global Corporate & Commercial business, particularly in regards to multinational programs, where digitization is crucial to ensure the highest level of service to our international clients. Across industries, our clients are exploring and investing in distributed ledger and smart contract technology with the goal of realizing end-to-end synergies, integration and efficiency. We want to continue to speak their language, guide them towards business growth by adding value beyond the simple policy, in a simple and intelligent way. Customers are changing and we are with them”.
