Zurich technology set to revolutionize the insurance industry

Global insurance companies are joining forces to fundamentally revolutionize the insurance industry from the Greater Zurich Area outwards. This is where the newly founded startup B3i has found the ideal conditions to pursue its goal of setting new international standards using blockchain. An interview with CEO Paul Meeusen.

It's where the heart of the established financial industry beats and where new technological innovations are emerging. It's also where you find the exact skills needed to launch a new generation of financial solutions. This is the credo of Paul Meeusen, CEO of the newly formed Zurich-based startup B3i. He has the support of 15 leading insurance groups such as Swiss Re, Munich Re, SCOR, Tokio Marine, Zurich, Allianz, Generali and Aegon. In terms of volume, they account for over 60 per cent of the global reinsurance market.

They had joined forces back at the end of 2016 to explore the potential of blockchain in their industry through the B3i consortium. It developed the first prototypes for a contract management system for processing transactions between insurers and reinsurers within a blockchain network. Polls after the tests show that the potential is enormous. It's now being implemented to bring the remaining 40 per cent on board.

Blockchain dynamic in the Greater Zurich Area

"We needed a new, agile structure that attracts the most talented people from the IT industry, which a startup in the Greater Zurich Area can accomplish," says Meeusen. He himself comes from Swiss Re, the world's second largest insurer after Munich Re.

The manager is very familiar with the innovative blockchain scene in the Greater Zurich Area and appreciates its drive, something that the new startup can benefit from. As Meeusen says: "The talent pool in and around Zurich for blockchain solutions is outstanding, and we are in constant exchange with innovative players in the region."

Meeusen even sits next to them in the newly opened blockchain hub Trust Square on the Bahnhofstrasse, just opposite the Swiss National Bank. The hub is home to blockchain entrepreneurs and researchers from the Federal Institute of Technology in Zurich or the University of Zurich.

B3i is already the largest Trust Square resident with 15 employees. By the end of 2018 this number should reach 50, and by the end of 2019 it aims to have 100 employees.

Acceptance is the key

In addition to agility, the Greater Zurich Area's stability was a main reason for choosing this location. "The local financial centre and especially the regulator are recognised internationally. Acceptance is a decisive factor for us," says Meeusen.

In the long term, blockchain solutions in the insurance industry can increase transparency as well as control over one's data and simplify the transfer of risk, says the B3i CEO.

The platforms, which are currently being developed as prototypes, promise enormous acceleration of contract processing and scaling options in the business-to-business area, far greater than was ever conceivable. B3i is currently refining its technology to optimize privacy protection and scalability.

Meeusen has his sights firmly set on developing a standard solution for the industry. "But first we want to prove with the help of the best experts that our systems work," he says.