Global Risk Exchange Overview
Blockchain is based on distributed register technology, which reliably records information through a peer-to-peer network. Although it was originally created for Bitcoin, the potential of the blockchain goes far beyond the limits of the crypto currency. Block logs can include land names, credits, identity cards, logistics declarations - any possible information. The technology is still new, but the potential impact that it can have on business is exciting and huge.
Global Risk Exchange (GRE) is a block-based, decentralized and open global risk exchange market, with the goal of helping people, companies and associations gain access to and trade and manage their risks. GRE has completely reconstructed traditional risk management tools (contracts for insurance and derivative financial instruments) in a decentralized manner and will become the basic operating system that assists insurance and derivative exchanges in the era of the block chain. GRE plans in the near future to build an infrastructure and platform for the risk management industry in the world, managed by block chains, providing a fundamental convention for creating risk events, assessing, exchanging, collecting data and oracles in order to identify specific risks. This will allow people and funds around the world to achieve a balance between risk and return.
GRE uses a decentralized exchange based on the block system to help the following members of the EE in the risk management contract:
Insured people and corporations in the real world who want to buy a risk management contract (provide premiums) to hedge their risks.
The insurer is the party receiving the premium and assuming the risks.
The contract designer measures specific risks and develops a contract.
With the platform it is possible to execute and profit from its specific data and understanding of risks. The market price of a risk contract is a market consensus and the group's insight, which is the best risk measurement at the moment. GRE allows to significantly increase the base of insurance limit suppliers, rather than ordinary insurance companies and reinsurance companies, which are centralized, well-regulated and capital-intensive.
GRE plans in the near future to fabricate the infrastructure and exchange platform for the risk management industry in the world, managed by block chains, providing a fundamental convention for creating risk events, assessing, sharing, collecting data and verdict. This will allow people and institutions around the world to achieve a balance between risk and reward.
There are some advantages to be highlighted:
The decentralized approach of blockchain technology can significantly reduce the threshold for all participants of insurance activities. The insurance company is "disassembled", sales channels, actuarial prices and underwriting opportunities and other related factors are "fragmented" and "distributed" to the chain-chain, and any competent person and organization can participate and play their role;
Efficiency and stability are improved, and the insurance premium and margin are automatically distributed through intellectual contracts, so that the insured can receive well-deserved compensation funds, even if the insurer is unable to make payment due to any possible risks;
The insurance policy purchased or sold on the GRE platform can be distributed in the secondary market, when the policyholder or insurer changes their mind about risk pricing, users can interact with each other in the secondary market, which increases liquidity in the market;
User data, underwriting and settlement processes, etc., will be more secure because of the decentralized community environment of the block chain. In the end, all insurance contracts will be concluded with the help of smart contracts.
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