GRE Being Awarded “Best of Blockchain & Financial Innovation Award” in the 7th China Fintech Summit
On April 19, 2018, the 7th China Fintech Summit was held in Shanghai. On April 20, Mr. Charles Huang, the Investment Business and Operation Representative of Global Risk Exchange (GRE) participated in the one-day sub-forum of “Block Chain Financial Ecology”, and introduced the Global Risk Exchange, an innovative insurance project based on the blockchain technology. In the follow-up roundtable discussion, he presented a few ideas and the vision of the role which blockchain technology could play in the financial industry. Finally, Global Risk Exchange (GRE) was awarded “Best of Blockchain & Financial Innovation Award” and won a big round of applause.
The financial industry is undergoing an unprecedented fintech revolution on a global scale. It is no longer operating in the “traditional” model, but in a more dynamic and efficient manner. This is a challenging turn-back. Starting from the general environment, Charles expounded the disadvantages of the traditional insurance industry, such as long industrial chain, tedious intermediaries, data retention disorder, low level of innovation, poor user experience, etc., and then proposed to solve these problems by establishing a decentralized risk exchange.
Firstly, the decentralized approach of blockchain technology can significantly lower the threshold for everyone to participate in insurance activities. The insurance company is “disassembled”, the sales channels, actuarial pricing and underwriting capacity, and other related factors are “split apart” and “distributed” onto the blockchain, and any competent individual and organization can participate and play their own role; secondly, the efficiency and stability are improved, both insurance premium and margin will be automatically locked in the chain according to smart contracts, so that the insured can obtain the deserved compensation funds even if the insurer is unable to make the payment due to any possible risks; thirdly, the insurance policy purchased or sold on the GRE platform can circulate in the secondary market, when the insured or the insurer changes its judgment on risk pricing, users can deal with each other in the secondary market which helps to promote the market liquidity; at last, the user data, processes of underwriting and claim settlement, etc. will be more secure due to the decentralized community environment of the blockchain. “Eventually, all insurance contracts will be made into smart contracts.” Charles expressed his expectation for the insurance industry in the context of blockchain technology.
The GRE project is developing smoothly at present and expected to launch the main net in May this year. GRE also cooperated with AXA — an enterprise among World Fortune 500, and planned to launch an agricultural insurance based on the weather index in Southeast Asia region.
On the same day, Charles and the other present blockchain elites participated in a roundtable discussion titled as “Does the block chain have the potential of becoming an industrial chain and what kind of opportunities and challenges we might be faced with”. In the discussion, Charles pointed, “The infiltration of the blockchain will be relatively fast in the aspect of payment and transaction.”
He said, “The relatively virtual fields, such as insurance and bond, may be a primary battlefield for development of blockchain technology. While in the fields which have a strong interaction with the real world, such as physical assets and antique assets, there will be a wide gap between the actual world and the block chain world. By far, it’s not clear how to fill the wide gap. Therefore, I insist that the blockchain will be used faster in the virtual transaction. “
With the expansion of cryptocurrency market, the term “token economy” is more and more recognized by the public. When it comes to how to evaluate the boom of the “token economy”, Charles preferred to understand it as a change of production relations. He claimed that in the traditional equity world, shareholders would share a large proportion of surplus value, while in the token economy, the community incentive mechanism would allow some early builders and participants to get more rewards, which is in favor of building consensus and bringing realizable expectation. This may be a possible change brought forth by the token economy. “In the future, we will have a new option to acquire wealth — not by working for one company, but by joining multiple communities.”
While the summit was coming to an end, there was still a big surprise. “Best of Blockchain & Financial Innovation Award” was finally awarded to GRE, which brought us much more confidence and motivation. With critical thinking and down-to-earth spirit, the GRE will explore the insurance industry by using the blockchain technology, build an innovative risk exchange platform, and contribute to the industry and even the whole society.
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