GRE is a Decentralized and Democratized Risk Management Platform

sunnysideupfang (55)in #bitcoin • 6 years ago

If we look at the human history, we will see that risk and uncertainty have always been the major fear in our lives and mankind has always been pursuing the means and tools to tackle and hedge itself against this fear of uncertainty. With the passage of time we developed certain tools to protect ourselves from any future risk or uncertainty, the most common tool being used by individuals is insurance products.

The traditional insurance products are heavily centralized in nature which makes the whole mechanism very slow and sluggish hence the insurance industry is lagging behind with comparison to the recent advancements seen by most other industries. Another problem that the insurance industry faces is the presence of intermediaries; any intermediary serves as a middleman and adds an unnecessary layer of costs to run an operation and the result of this unnecessary layer in insurance is higher insurance costs.

Most of the insurance industry remains in control of a small number of very large companies. The centralization of the insurance market is a problem for consumers. To fix this problem, a company is developing the Global Risk Exchange to decentralize the insurance market.

Global Risk Exchange

GRE- Global Risk Exchange, a blockchain enabled platform provides solution to the challenges faced by the traditional insurance industry.

GRE is a decentralized marketplace which provides an opportunity to individuals and companies to freely and independently hedge, trade and transfer their risks; these are the fundamental concepts of insurance, but now instead of purchasing insurance contracts from a company, GRE will enable the purchase of insurance products from everyday people.

GRE is a platform where the individuals or companies who are in need of risk management can create decentralized tools that will allow them to trade their risks to others who are willing to take management of those risks. Since no intermediaries are involved the price is determined by real demand and the whole process is fast and transparent. Since everyday people do not have the ability to construct insurance policies, GRE's Proof of Work mechanism will award the actuaries who participate in the platform to create the insurance products that people and companies can trade. GRE makes it possible for everyone involved in the insurance process without the involvement of a centralized company. This means that the insurer, insurant, and insurance product experts can now participate in an open market.

All the concerned parties which include the insured, the insurer and the designer who prepares the contract by investigating the magnitude of risk, can transact and decide the price with consensus. This consensus determines the price of a risk contract which is a more realistic valuation of a risk because the decision is driven by an open market.

GRE offers one more advantage and this will be a key to the success of GRE. It broadens the base of insurance providers in addition to the traditional insurance companies which are extremely centralized and heavily regulated. In view of this, I can say that GRE- Global Risk Exchange is going to revolutionize the traditional insurance industry by providing a decentralized and completely democratized blockchain enabled risk exchange marketplace.