The largest reinsurer in the world, the German company Munich Re, will insure the algorithm of the Israeli startup FUGU, which is developing a system to detect fraud in e-commerce transactions.
FUGU has created a solution designed to deal with complex e-commerce frauds. The prevalence of fraud in e-commerce results in merchants becoming overprotective, even at the cost of blocking normal transactions.
As part of the deal, Munich Re will insure FUGU’s algorithm, in case it doesn’t detect fraud.
Dikla Wagner, who represents Munich Re in Israel and is the Head of Tech Scouting for Munich Re in Israel, said: “We live in a dynamic reality, when the technologies themselves also create new risks. The great innovation is the ability not to be afraid of facing those risks, such as AI risks, and understand and quantify them. Insuring the risk and actually taking it out of the equation allows the startup growth potential.”
