The Blockchain Insurance Industry Initiative (B3i), has announced the creation of a blockchain start-up, headquartered in Zurich, Switzerland.

The start-up, named B3i Services AG, was formed by B3i’s founders. The consortium is a collaborative initiative of 15 global insurers and reinsurers that was formed in 2016 to explore and test the potential of blockchain technology in the insurance industry.

In mid-2017, B3i successfully completed its first product, a blockchain prototype for property cat XoL reinsurance contracts. As of October 2017, a total of 38 insurers, brokers, and reinsurers have tested the product.

According to B3i, the new start-up’s purpose is to provide insurance solutions on a blockchain platform which improves efficiency across the value chain of the re/insurance industry by up to 30%. These solutions seek to benefit both insurance companies and customers through improved speed, transparency, quality, security, and cost.

Gerhard Lohmann, CFO of reinsurance at Swiss Re, has been appointed as chairman for B3i services.

“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,” Lohmann commented.

“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.”