Monday, June 24, 2024

World first legally bound CatXoL reinsurance contract on DLT successfully placed by Allianz and Swiss Re

Allianz and Swiss Re have successfully placed the world’s first legally binding reinsurance contract on distributed ledger technology (DLT), enabled by B3i’s live production network. The placement covers one of the core catastrophe reinsurance contracts of Allianz, including key submission parts, final terms and contractual clauses binding to both parties signing this transaction. The respective process was completed by both parties digitally signing the contract at the beginning of 2022.

This significant milestone comes as the natural next step for the two members of B3i’s ecosystem. The placement followed extensive and industry-wide testing which had been facilitated by B3i, including the enhancement of respective functionalities throughout the last year.

Participants in the recent transaction identified various advantages on the legal, technical, and operational side of their business. For the first time, they have certainty over this type of DLT-contract, in a regulatory compliant manner, to also comply with obligations raised by regulators. The contract is legally binding and meets their corporate requirements, like the four-eye-principle, signature status or security of details. These technologies and processes align with B3i customers’ existing technical and compliance frameworks, to agree legally binding contracts.

Furthermore, technical implementation adhered to their corporate security and technology policies and respective internal requirements. By fulfilling the business and regulatory requirements of contract certainty and legally binding, B3i Re allows for transparency and trust in the process. Participants can also recreate the contract directly from counterparties’ nodes, safe in the knowledge it cannot be changed, thus building the necessary resilience into their corporate systems.

By solving common market problems without adding additional complexity in internal processes, B3i Re offers advantages as leveraged by pioneers like Allianz and Swiss Re while having market wide impact and paving the way for broader adoption of B3i Re.

Jan Stoermann, Chief Underwriting Officer at Allianz Re, commented: “The signing of the first legally binding reinsurance contract on the B3i platform is a step into the future for Allianz. It showcases the capabilities of the platform which we plan to expand on: we will explore how to further integrate B3i’s platform into our transactional processes such as accounting and claims management.”

Theo Bachmann, Head P&C Centre Reinsurance at Swiss Re, stated: “We are excited by the exchange and signing of an in-force P&C treaty structure and wording via the private & secure B3i network. It is a further step in the journey to modern, efficient, and effective management of (re)insurance treaties.”

John Carolin , CEO of B3i Services AG: “This global first marks another significant milestone in our journey. Absolute contract certainty has arrived. We are delighted to be able to generate the benefits articulated by our customers and industry front runners Allianz and Swiss Re, and this outcome is a testament to the collaborative way in which our customers shape our products.”

“Our B3i Re solution has matured over the last years and today, with its extended functionality, compliments current market practices, has broad application and blazes the trail of digital transformation. Thanks to the pioneering work by multidisciplinary teams across B3i and its stakeholders, the multitude of benefits, including compliance and efficiency gains, is now available to large and small customers.”

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