Long overdue and in (not so) magical correspondence with geopolitical events - risk rant 2 here we go!
I believe that the next big wave of Israeli startups will apply risk-thinking approaches to different risk pools around the world. In my thinking, risk pools can be broken into two categories:
𝗖𝗹𝗮𝘀𝘀𝗶𝗰 𝗿𝗶𝘀𝗸 𝗽𝗼𝗼𝗹𝘀
These risk pools have been around for decades, even centuries. They’re not hyper-growing anymore, but their growth is steady, and they’re huge in volume. Perhaps for that reason, they are still mostly managed with outdated tools and data practices.
Here are two examples:
1. Breeze (Eyal, Noam, Max) is building workflows and models to manage the ~$79B cargo insurance risk pool
2. Assured Allies (Roee, Afik) is helping insurers and families manage their exposure to longevity risk, a pool worth $100Bs annually
The opportunity here is often replacing or optimizing existing tools to improve risk management, and bringing risk practices to the 21st century—whether it’s access to new data, modern underwriting, or risk monitoring and visibility.
𝗠𝗼𝗱𝗲𝗿𝗻 𝗿𝗶𝘀𝗸 𝗽𝗼𝗼𝗹𝘀
These are newer and smaller compared to classic risk pools, but are growing very quickly. Many don’t yet have the tooling, workflows, structured datasets, or methodologies to manage them properly or scalably.
For example, healthcare fraud is a well-established classic risk pool worth over $100B annually. Telehealth fraud, on the other hand, is an example of a modern risk pool: it’s still small at ~$8B, but growing at a 20% rate a year.
Unlike healthcare fraud, telehealth fraud lacks the tools, methodologies, or even regulations to effectively govern and manage them.
Given how new these risk categories are, the opportunity here is to build tools that stakeholders need to manage these risks effectively.
As you can see, I’m quite excited about Israeli companies innovating around risk categories. If you’re a founder looking at ways to revolutionize classic risk categories or shape modern ones, I’d love to hear your thoughts.
(In the photo - the young and beautiful Breeze team disrupting a traditional risk category over a company lunch)
