Every business is susceptible to one form of risk or the other. At individual level, there is risk in everything humans do; from housing, utility, medical and in all areas of human endeavor, there is risk. To mitigate these risks, individual resort to insurance companies while companies and big organizations resort to derivative market. This essence of risk management has, therefore, made the insurance and the derivative market essential component of the global financial market. Individuals, companies and organizations spend huge amount of money annually as payment to hedge their assets in the insurance and derivative market. A report released in 2016 revealed that the gross premium for that year amounted to 4 trillion USD while the global derivative market amounted to 1500 trillion USD. This shows that the global insurance and derivative market is huge and necessitate more attention that will improve the system of operation as the which is not best positioned to meet the challenges of technology and globalization due to many problems facing it.
Firstly, there is the problem of centralization in product design and actuarial pricing which leads to homogenization as oppose to the diversified risk management needs of the people. In other words, insurance companies use centralized approach and most time do not put into consideration, the diversified nature of actual risks in practice. There is also the problem of bureaucracy, bloated structure and poor decision-making mechanism. These factors discourage innovations and the result is inefficiency in service delivery. Secondly, there is the problem of too many intermediaries in the insurance chain and this result to high premium charges on customers and most times, low profits for small and medium-scale insurance companies. Thirdly, there is the problem of fraudulent tendencies, misleading policies by many insurance companies and complacency on the side of the insured. Finally, there is the problem of lack of user privacy protection. Centralized systems are prone to security breaches result to loss of data and assets.
Consequently, Global Risk Exchange (GRE) have come to address the problems facing risk management system by proposing something different and better than the traditional systems. Global Risk Exchange is a blockchain based platform that will integrate decentralization into the risk management system. The plan is to eliminate the complex procedures of the traditional system and the numerous intermediaries by bring only two parties into the risk management system: those who want to shift their risks away from them (the insurant) and are willing to pay premium for them and those who could shoulder those risks (insurer) and are willing to pay compensation when the need arises and receive premium as profits. Through an inbuilt template, individuals and companies can create risks seamlessly and these risks being accessed on market based and can be traded through smart contracts that matches these risks to the insurers automatically. This process eliminates all the intermediaries, fraud, and save resources for all parties. As a decentralized platform that operates on a P2P basis, there are no chances of bureaucracy and breach of privacy and data compromise.
Transactions in this platform is primarily designed for the Global Risk Exchange token (RISK), however, there are provisions for fiat transactions as a way of ensuring that everyone have access to what is convenient for them. To this end, the services of exchange dealers, who will be able to accept fiat and issue RISK at predefined exchange rate, will be integrated. The GRE platform will be equipped with best practices to protect users from security threats.
To raise the money required for the development of this platform, an ICO will be conducted. There are many benefits attached to being a token holder because as a pioneer project in this huge industry, there will be a massive adoption of this concept that provide a win-win opportunity for both the insurant and the insurer. The details of the token, price and sale can be found in the whitepaper and the website and it is recommended that one should go through available materials and equally join the Telegram community to interact with the team behind this wonderful project.
In conclusion, Global Risk Exchange is a platform that have come to revolutionize the risk management industry by offering something more flexible, secured and efficient in risk management and with associated reward for all parties in the ecosystem.
For more information about this project and the token sale, please use the links below;
Website: https://www.gref.io/
Whitepaper: https://www.gref.io/gre.whitepaper.en.pdf
Telegram: https://t.me/GREF_EN
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BTT username: nattykio
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