Masterclass facilitated by Antonio Di Marzo, Sylvain De Crom, and Mark Simpson

1. ©B3i 2018
14, November 2018
B3i Products MasterClass
Amsterdam

2. ©B3i 2018
Welcome & introductions

3. ©B3i 2018
Topic Responsible Content Time
Introduction, scene
setting and
B3i roadmap
Mark Welcome & introductions (who is who) 14:15-14:25
Antonio Risk transfer and inspirations from a peer industry 14.25-14.40
Sylvain Product functionalities and roadmap 14.40-15:10
Workshop explanation Mark Working groups and targets 15.10-15:20
Working session All Insurance value chain pain points brainstorming 15:20-16:00
Coffee break All Coffee 16:00-16:15
Plenary All Each group presents and takes questions. 16:15-17:05
Wrap-up & Actions All Reflect on key takeaways and learnings 17:05-17:15
Our Agenda – Day 1
Product Masterclass - Amsterdam Conference November 20183

4. ©B3i 2018
B3i history – Transition from an initiative to a company
Oct 2016
Consortium
founded
Jun 2017
Prototype
completed
Oct 2017
Joined by 23
market testers
Mar 2018
Incorporation
Jan 2019
First Cat XoL
live trades
Sep 2018
Commercial
Insurance project
announced
Product Masterclass - Amsterdam Conference November 20184

5. ©B3i 2018
Table

6. ©B3i 2018
§ Introduce yourselves
§ Briefly discuss and mark on the grid the
intersection between
§ Your DLT use to date
§ If you haven’t, use the Zero lane
and
§ Your view of its potential
§ If you haven’t a view, use the “No
Idea” lane
On your tables
DLT/Blockchainusetodate
View of DLT/Blockchain potential
High
Low
HighLow
No
Idea
Zero
DLT/Blockchain use/views
Product Masterclass - Amsterdam Conference November 20186

7. ©B3i 2018
At the back of the room are two measures, please take a red dot and indicate your views on each scale
Temperature Check 1
7 Product Masterclass - Amsterdam Conference November 2018

8. ©B3i 2018
First a story….
Risk transfer and inspirations from a peer
industry

9. ©B3i 2018 Product Masterclass - Amsterdam Conference November 20189

10. ©B3i 2018
Global Marine Transportation established, with cargo
transported loose bulk
§ No standards in place
§ High manual and duplicated activity
§ Expensive to manage and for the Customer
§ Inefficient handling: Loading and Unloading
§ Risky distribution of the goods on the ships
§ Poor Quality Service – goods damaged while in transit
§ No interoperability in place
Product Masterclass - Amsterdam Conference November 201810

11. ©B3i 2018
Global Marine Transportation enhanced, with Cargo
transported in a standardised way
§ Full standards in place
§ High automated activity
§ Cost reduction
§ Efficient handling: Loading and Unloading
§ Controlled distribution of the goods
§ Better quality and reliable service
§ Full interoperability in place
….and so much more has happened so far
Product Masterclass - Amsterdam Conference November 201811

12. ©B3i 2018 Product Masterclass - Amsterdam Conference November 201812

13. ©B3i 2018
The 3 key pillars for a successful transformation of CI
Standardisation Integration Automation
Product Masterclass - Amsterdam Conference November 201813

14. ©B3i 2018
GOODS
TRANSFER
Product Masterclass - Amsterdam Conference November 201814

15. ©B3i 2018
RISK
TRANSFER
Product Masterclass - Amsterdam Conference November 201815

16. ©B3i 2018
Where do we stand?
Where do we stand?
Product Masterclass - Amsterdam Conference November 201816

17. ©B3i 2018
Insurance 3
Market
submission
Risk assessment
& selection
Negotiation Binding Issuance Renewal
Endorsing
Claim mgmt.
PolicyholderBrokerInsurerProcess
Insurance 3
Insurance 3
Insurance 3 Insurance 3
Insurance 2
Insurance 3
x
ü
Insurance 1
Insurance 1 (lead)
Insurance 3
Insurance 1 (lead) Insurance 1
Insurance 1
Insurance 2
Insurance 1 Insurance 1
(lead)
ü
ü
x
The commercial insurance process today
17 Product Masterclass - Amsterdam Conference November 2018

18. ©B3i 2018 Product Masterclass - Amsterdam Conference November 201818

19. ©B3i 2018
Absence of standards
Lack of integration
Manual & paper
based
Operational Challenges Consequences
Contract uncertainty
Service unreliability
Uncontrolled peak seasonality
Uninformed underwriting
Lack of transparency
Uncontrolled admin costs
High friction and latency
Errors and reworks
Uncontrolled operational
risk capital
Uncleared cash
All stakeholders pay for the inefficiency, risk and poor quality of the current process
Commercial Insurance – Challenges & Consequences
19 Product Masterclass - Amsterdam Conference November 2018

20. ©B3i 2018
3 Key Pillars
Standardisation Integration Automation
Domain Model Network Applications
Product Masterclass - Amsterdam Conference November 201820
&
Partner Applications

21. ©B3i 2018
Key Drivers
B3i Community
+
Product Masterclass - Amsterdam Conference November 201821

22. ©B3i 2018
Established
standards
Seamless integration
Automated & Digital
B3i Deliverables Advantages
Contract certainty
Service reliability
Increased throughput
Informed underwriting
End to End transparency
Admin cost reduction
Frictionless real time
transactions
Quality and efficiency
improvement
Minimised operational risk
capital
Automatic cash allocation
All stakeholders benefits from the quality, efficiency, and growth potential of the new process
Commercial Insurance – B3i Opportunities & Deliverables
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23. ©B3i 2018
B3i Vision – Acceleration of change
Accelerate the world’s transition
to more relevant, accessible and
affordable insurance
Product Masterclass - Amsterdam Conference November 201823

24. ©B3i 2018
Product functionalities and Roadmap

25. ©B3i 2018
Why DLT
25 Product Masterclass - Amsterdam Conference November 2018

26. ©B3i 201826 Product Masterclass - Amsterdam Conference November 2018
Insurance value chain
Reinsurer
Policy
Holders
InsurerIntermediary Intermediary

27. ©B3i 2018
Traditional
1
12
23
3
Shared Distributed Ledger
Contract Certainty
Product Masterclass - Amsterdam Conference November 2018
34
45
5
3
34
45
5
3
34
45
6
6
5
5
Risk Originator Risk Intermediary
Risk Taker
56
12
12
3
3
34
4
4
5
5
53
3
34
4
4
5
5
5
3
3
34
4
4
5
5
56
6
6
Risk
Originator
Risk
Intermediary
Risk Taker
Risk Taker
Risk Taker
27

28. ©B3i 2018
Traditional Shared Distributed Ledger
Efficiency
28
2
2
2
2
2
2
2
2 2 2
3
3
3
3
3
3
3
3 3 3
3
3 3 3
3
3
3
3
3
3
Typical front to
back tim
elines
Seconds
Typical front to
back timelines
weeks to
months
Product Masterclass - Amsterdam Conference November 2018
Risk Originator Risk Intermediary
Risk Taker
Risk
Originator
Risk
Intermediary
Risk Taker
Risk TakerRisk Taker

29. ©B3i 2018
Standardisation + Network = Interoperability
29 Product Masterclass - Amsterdam Conference November 2018
BOCI
BOCI BOCI
BOCI
BOCI
B3iDM (based on ACORD IM)
BOCI – API

30. ©B3i 2018
Loss migrating up the value chain
30 Product Masterclass - Amsterdam Conference November 2018
Loss per party

31. ©B3i 2018
§ Integrated provenance
§ Shipping
§ Logistics
§ Health
§ Payment
§ etc
Integration with other networks
32 Product Masterclass - Amsterdam Conference November 2018
B3i
Insurance Network
Procurement
Network
GSN
Shipping network

32. ©B3i 201833 Product Masterclass - Amsterdam Conference November 2018
B3i Roadmap

33. ©B3i 2018
Medium term roadmap (I/II)
Product Masterclass - Amsterdam Conference November 201834
P&C
Reinsurance
Life&Health
Reinsurance
P&CCommercial
Insurance
2018 2019 2020 2022 20232021
Generic Contract
P&C Cat
Local / Special
P&C Types (QS, Fac, Surpl, Agg SL, etc)
Local / Special
Local / Special
Health Types (QS, Agg SL, XoL, etc)
Local / Special
Life (& TPD) Foundation & YRT
Local / Special
Life Types (Level, Surplus, AggSL, etc)
Local / Special
Health Surplus
Local / special
P&C Cat (Contract)
CI Property Global
CI Property other Locals
CI Multinational Programs
CI Products (Casualty, Liability, Motor, Marine, etc)
CI Property DE, IT, FR, US
Local / special
34

34. ©B3i 2018
Medium term roadmap (II/II)
Product Masterclass - Amsterdam Conference November 201835
P&C
Insurance
Life&Health
insuranceOthers
2018 2019 2020 2022 20232021
Insurance P&C Foundation & Household
Local / special
P&C Products (Car, Liability, etc)
Local / special
Multi party netting
Settlement
Historic contract
Local / special
MGA
Local / special
Financial market risk exit (e.g. LS) [close cooperation B3i and Banking cons]
Insurance Life (& TPD) Foundation & Level
Local / special
Life Products (AD, TAD, RP, ML, etc)
Local / special
Health Base
Local / special
Local / special (e.g. collateralized)
Risk pools
35

35. ©B3i 2018
Roadmap: Component reusability = core principle
36 Product Masterclass - Amsterdam Conference November 2018
P&CReinsuranceP&CCommercialInsurance
Early movers
programme (EMP)
MVP
Make Block
Tender and
quotation
Create
contract
Lender
negotiation
& signing
Writing &
signing
follower
Endorse-
ments
Tech.
Accounting
Comp. X
Re
PropCat QS
Loss
event
Comp. A
Re
Clauses Library Fac Reinsurance
Loss
Accounting
...
Payment /
Settlement
...
LINESOFBUSINESS
Risk Details ClausesStart Proportional Prop &
Accounting
...
...
...
Comp. Y
Re
...
Comp. B
Re
Comp. X
CI
...
...
...
Comp. A
CI
...
...
...
...
...
...
...
...
...
Comp. B
CI
...
Comp. Y
CI
...
...
...
...
...
Note, most blocks are reusable, even though not every block has an arrow
…Start … …
…
...
...
...
…
...
...
...
...
...
...
...
...
...
…
...
...
...
…
…
...
...
…
…
…
...
…
...
L&HReinsurance

36. ©B3i 2018
P&C Reinsurance – going live at 1
st
January 2019
Community, Requirements definition & Prototype testing
Foundational and Core Development & testing
Post-placement Development & Testing
Commercial deployment
Feb 17 - Nov 17
Feb 18 - Dec 18
Jan 19 - Jun 19
Jul 19
Product Masterclass - Amsterdam Conference November 201837

37. ©B3i 2018
P&C Commercial Insurance – going live in 12 months
Community & Requirements definition
Global core development & testing
Local components development & testing
Pilot countries deployment
Nov 18 - Jan 19
Jan 19 - Jul 19
May 19 - Sep 19
Sep 19 - Oct 19
Product Masterclass - Amsterdam Conference November 201838

38. ©B3i 2018
Work approach & structure

39. ©B3i 2018
Understanding
Where we are and where we want to be
Making a transition
Community
Getting to know each other and our different perspectives – valuing the commonalities and differences
Starting to work together – sharing experiences and ideas
Further identifying what is needed for a thriving community and change transition
Our aims from this session
Product Masterclass - Amsterdam Conference November 201840

40. ©B3i 2018
Today is all about what and why, not about how
41 Product Masterclass - Amsterdam Conference November 2018
The process might feel like this…
Uncertainty Connecting dots Aha moments Clarity and focus
Research Synthesis Specific ideas and concepts Detailed design and delivery
Our focus in this workshop

41. ©B3i 2018
The Insurance Value Chain – Working Group Framework
42 Product Masterclass - Amsterdam Conference November 2018
In short, we aim to answer 2 x 2 questions:
A. Where we are and would like to be
1. What is wrong with the way it works
today?
2. What would add value?
Out of scope for this workshop
B. Making the transition
1. What pitfalls lie ahead?
2. What will help us get there?
Challenges in making the change
Enablers to make it happen
The pain points
Value sought
We aim to consider the current value chain and focus on mapping:
Seek Protection &
Market
Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance Renewal
Claims
Management
Endorsing

42. ©B3i 2018
Working group setup
43 Product Masterclass - Amsterdam Conference November 2018
§ Work groups of five teams,
§ each focused on one element of the value chain.
§ 40 minutes to consider the four questions.
A facilitator will guide each team
§ Break for coffee
§ “Temperature check 2"
§ A plenary session - each team will take ten minutes
to present their view of the four dimensions and
take questions from the other teams

43. ©B3i 2018
Pain
Points
Value
Sought
Challenges
Enablers
Product Masterclass - Amsterdam Conference November 201845
Seek Protection
& Market Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance

44. ©B3i 2018
Pain
Points
Value
Sought
Challenges
Enablers
Product Masterclass - Amsterdam Conference November 201846
Seek Protection
& Market Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance

45. ©B3i 2018
Pain
Points
Value
Sought
Challenges
Enablers
Product Masterclass - Amsterdam Conference November 201847
Seek Protection
& Market Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance

46. ©B3i 2018
Pain
Points
Value
Sought
Challenges
Enablers
Product Masterclass - Amsterdam Conference November 201848
Seek Protection
& Market Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance

47. ©B3i 2018
Pain
Points
Value
Sought
Challenges
Enablers
Product Masterclass - Amsterdam Conference November 201849
Seek Protection
& Market Submission
Risk Selection,
Assessing
and Pricing
Negotiation
Binding &
Issuance
Reinsurance

48. ©B3i 2018
& Temperature Check 2
Please take a yellow dot and indicate your views on each scale

49. ©B3i 2018
Plenary Presentation and Q&A

50. ©B3i 2018
Wrap-up & Actions

51. ©B3i 2018
B3i Initiatives and community participation
53 Product Masterclass - Amsterdam Conference November 2018
Whilst B3i will fund and build the product set, community input is hugely valued for these initiatives
Typically members are asked to contribute their time
§ Max 10% of each FTE nominated, suggested maximum of three representatives per organisation
§ SMEs from Underwriting, Underwriting Operations, Client/Broker Relations, Technical Accounting,
Claims Management, Technology, Legal, etc...
Participate on three levels:
SMEs to share the current processes and their pain points, plus aspects that would be valued,
participate in our hackathons to review solutions and participate in testing.
To provide feedback from inside and outside their organisations on how change is received
and what additional support B3i should provide;
To act as advocates for this change.

52. ©B3i 2018
Initiatives
54 Product Masterclass - Amsterdam Conference November 2018
Interested? Please speak with one of the team
Reinsurance Commercial Insurance Life & Health
In progress Coming in 2019

53. ©B3i 2018
Actions & next steps
55 Product Masterclass - Amsterdam Conference November 2018
§ Actions can be
a) Explicitly from what we
discussed during our
working sessions or
b) New ideas that you
would like to share right
now
§ Actions can also be relating
to future workshops or B3i
more generally
Action Responsible Due date
Share a summary of workshop Antonio Di Marzo w/c 19 Nov
Register your interest to join the CI
Initiative
All 30 Nov
Register your interest to join the EMP
wave II
All 15th Jan 2019

54. ©B3i 2018
As you leave, please use a green dot to take a final temperature check
Temperature Check 3
56 Product Masterclass - Amsterdam Conference November 2018

55. ©B3i 2018
thanks you!
57 Product Masterclass - Amsterdam Conference November 2018