The Global Risk Exchange (GRE) of the Global Risk Exchange announced that it has recently won the investment of the Huobi Global Ecological Fund. A new round of financing will be used to promote the international distribution and ecological construction of GRE. GRE already received investment from Shen Bo (founding partner of distributed capital), Gong Ming (Prince Runaway), Liaode Capital, JRR Crypto etc.
Paul Qi, the insurance and risk control actuary representative of the GRE Foundation, stated that these traditional management models have following problems:
The traditional insurance market has homogeneous insurance products and the cost of sales channels is expensive. A large amount of capital is used to pay insurance brokerage agency fees and corporate operating expenses. There are also problems, such as a limited insurance option and the risk of leakage of the user's personal identity information.
The traditional financial derivatives market. The scale of OTC transactions is large and non-statistical, and the exhaustion of liquidity caused by the frequent risk from counter party and market panic.
GRE's solution is to decentralize risky exchanges.
Due to the de-trusted nature of the blockchain, no licenses in the traditional industry are required. Anybody can safely trade risks on the platform and personalize insurance guarantees. The corresponding insurance smart contract is designed by the actuary.
Compared to traditional industries that need policyholders, insurance brokers/agents, insurance companies, reinsurance companies, and insurance securitized products (such as catastrophic bonds, etc.), GRE only need five parties: insurers, policyholders, and insured, GRE platform, witnesses.
The insurer is the actuary and product manager responsible for the design of risk management contract terms, as well as the risk probability and its corresponding premium rate. Witnesses are responsible for collecting all risky transactions during a time period, packing transactions into blocks, signing blocks and broadcasting them to the entire network, reporting on the results of risk events occurring during a certain period of time, and packaging the results into blocks, signing and broadcast.
For example, if the insurer wants to insure an aviation delay insurance, it is estimated that the probability of delay is 40%. Then the premium you pay is 40 tokens to get 100 tokens, and the insurer put 60 tokens to the smart contract. Then through a trusted third-party data source to determine if the aircraft is delayed. If it is delayed, the smart contract will be executed automatically, giving the insurer 60 tokens to the insured, and the insured will receive 100 tokens. If there is no delay, the smart contract will execute the insured's 40 tokens to the insurer. The insurer here can be either an institution, a single person or multiple persons, and does not need to have a corresponding license.
For trade of DAGT Token
https://forkdelta.github.io/#!/trade/0x56d1ae30c97288da4b58bc39f026091778e4e316-ETH
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