Technology

Blockchain joint venture of insurers B3i files for bankruptcy

An international consortium of 21 insurers and reinsurers, united in the Swiss company B3i Services, which developed blockchain-based solutions for the insurance sector, filed for bankruptcy on July 28. The company cites the failure of its latest fundraising efforts.

The company was founded in 2018, two years after the creation of a consortium of 15 insurers and reinsurers, recalls L’Argus de l’Assurance, which noticed the news. The first shareholders (Allianz, Munich Re, Swiss Re, etc.) were later joined by other sector players, including Axa. B3i’s goal was to automate insurance processes using blockchain, making them more efficient, faster and more profitable using smart contracts. The company has developed solutions in the field of natural disasters, marine insurance and reinsurance.

“A concept that remains interesting”

B3i raised about 23 million euros in 2018 and 2019, and the latest funding round, for an undisclosed amount, was in 2020. Swiss Re and Allianz integrated this technology into one of their products last April.

“I think it was a good job, but in the end we didn’t feel like the volumes and demand justified continuing to invest in this platform,” Swiss Re’s chief financial officer explained after filing for bankruptcy. “I think the concept remains very interesting for the sector. Maybe at some point someone will find the right formula. But so far with this platform, we were not going to look for profitability,” he added.

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