Going digital has been a very good thing for AIG. Kevin Hogan of AIG directly attributes new digital platforms to a big increase in AUM. The digital platforms make the investment process so much easier and client friendly with, of course, the welcome cost savings. That's a win/win. Who knew AIG could be so forward looking?
(Bill Taylor/CEO)
American International Group Inc., the insurer and retirement planner that traces its history back to 1919, is finding being tech-savvy pays off.Consumers are pumping cash into a unit that oversees $244 billion in client assets after it invested in digital platforms to make the process easier, according to the head of the division, Kevin Hogan.
“We believe our assets are up billions of dollars as a result,” Hogan said in an interview last week at AIG’s New York headquarters, referring to digital services created for clients such as teachers and hospitals. The unit, called Valic, has set up a record number of investment plans this year, he said.
The market for digital advice is likely to grow to $1 trillion by 2020, according to a recent study by Aite Group. Under Chief Executive Officer Brian Duperreault, AIG has focused on tech to streamline operations and forged a relationship with hedge fund firm Two Sigma Investments to work on deals with small- to middle-sized businesses.
AIG shares slipped 1 percent to $60.38 at 1:12 p.m. in New York, extending its decline for the year to 7.6 percent.
Full Story at Bloomberg