Global Risk Exchange: Block chain risk exchange platform!

Global Risk Exchange or in short "GRE" is a leading decentralized public chain market place based in Tokyo, Japan. The "GRE" was introduced with an objective to assist the organizations, individuals and companies to transfer, hedge and trade the risk with ease. The Global Risk Exchange had completely overhauled the traditional risk management system. It would soon become a safe platform to execute transactions and guide the insurance without any risk.

Both companies and individuals could take advantage of the risk management tools to develop and transfer the risks involved in a block chain to a third party. These risks are automatically passed on to those people who are not reluctant to accept the challenge. It is one of the best platforms, which ease risk coverages, and adequate support for insurance is provided.

The Global Risk Exchange exploits the decentralized platforms to enable the participants who are actively involved in selling and purchase of premium and risks. The sagacity of the public along with price of the risk contract amounts to market consensus. At present, it is regarded as the top measurement of the risk contract.

Efficient risk exchange market

The entire risk exchange market can be made more reliable and effective by breaking the barrier between insured and insurer. It would further enhance the liquidity and exchange of data as well. By accepting huge amounts of risks, the brand new capacity lenders could fetch more profit and improve the information flow to the Global Risk Exchange market place. This would help in a smooth operation of a Global Risk Exchange market.

The primary objective of Global Risk Exchange is to create a block chain infrastructure, which would ultimately help the institutions and individuals to procure risk and maintain equilibrium hassle free.

Risk and uncertainty in Global Risk Exchange

Some of the core factors, which are unavoidable, is risk and uncertainty in the existing Global Financial Market. Majority of the financial institutions and potential investors harness derivative market with the objective to hedge the risks. On the other hand, insurance products are a common tool adopted by the individuals to safeguard and manage the risks. The estimated global cross premium in the year 2016 stood at 4 trillion USD. The global Gross Domestic Product was about 5.7%. However, it escalated to nearly 4.8 trillion USD in the year 2017. The market size of global derivate was about one thousand five hundred USD. The global Gross Domestic Product stood at fifty trillion USD and one hundred trillion USD in terms of global equity as well as bond market.

Major hitches involved in the traditional risk management platform

The risk pricing with respect to majority of the insurance products are heavily depended upon the actuarial model. The sales contained in the insurance companies are purely based on the channels. Owing to the homogenous structural design, most of the insurance companies resort to callous price competition. This would ultimately end up in unnecessary wastage of financial resources.

Traditional financial institutions and insurance companies normally exploit the Pyramidal Organization Structure. With the motive to maintain control, a very high insurance brokerage fees is charged and exorbitant operating expenses as well. Both small and medium scale establishments do have to face serious losses in terms of profits and heavy overheads.

The Pyramidal organization structure of the insurance companies is extremely huge which blocks its decision creating mechanism to cope with the upcoming trends in the market.

During the process of sales, the traditional insurance companies demand the public to furnish personal details and vital information to be saved in their database. This includes a potential risk where the majority of the data are often sold to fetch a huge amount of profit.

Deceiving the public

The sales people of insurance companies purposefully hide the terms of contract and mislead the policyholders. Likewise, the policyholders disguise the insurance company with a motive to procure a feasible coverage ratio and even minimum premiums. Claim fraud is also a common activity between the insurance company and the policyholders.

The risk preferences of a policyholder might fluctuate upon purchasing insurance. There is actually no practical solution to mitigate the commotion hidden in the traditional insurance market.

Why choose The Global Risk Exchange?

Once a decentralized transaction data is inputted into a block, it cannot be re-edited with a new piece of information. The smart contracts can be executed with ease with the involvement of human beings. Each data stored in the company's database is explicit and easily traceable.

Risk Token in the Global Risk Exchange Market place

The risk token is regarded as one of the medium of transaction in The Global Risk Exchange marketplace. It can be easily procured by using Etherium, bitcoins and similar cryptocurrencies. It is a type of utility token that are normally used in the field of risk management contract for further transaction.

The risk token is also used a means to settle transaction fees in The Global Risk Exchange platforms. The Global Risk Exchange community bestows the developers in the form of risk tokens for their significant contributions. Both financial institutions and developers will be able to publish risk management contracts with the help of GRE platforms.

The GRE is also an excellent platform where financial institutions and individual could share and exchange risk management contracts with ease. In return, they will be granted brand new transaction fees from a traded contract.

Creating risk management contracts

In order to develop a brand new risk management contract, the users might require an HI template. They need to pick a suitable date to execute risk management contracts. These type of contract has a pre-defined rates in order to estimate the contract odds. The standard rate is set to 1.00. Take for example, if the premium rate is 25%, the policyholder is liable to pay 25% of the overall risk capital pool. The contract design needs to comply with the guidelines of both insurance compensation and insurable interest.

Website- https://www.gref.io/
Whitepaper- https://www.gref.io/gre.whitepaper.en.pdf

Author- https://bitcointalk.org/index.php?action=profile;u=1188306;sa=summary