This post references an article originally published by The Wall Street Journal on September 5, 2019 and an interview published in the Financial Times on August 28, 2019.
Prudential Financial Inc. has acquired online startup and life insurance provider Assurance IQ Inc. for $2.35 billion. The deal is an attempt by Prudential to combine their traditional services with the efficiency and effectiveness of “insuretech” firms to reach a broader audience. The merging of traditional insurance companies with online startups is a current trend, The Wall Street Journal reports, which seeks to “benefit from data analytics driven by algorithms”. Assurance currently uses “data science and machine learning to assess needs” and attract customers in a mutually beneficial way.
The acquisition highlights the unstoppable influence online startups and algorithm-driven business practices are having on every market. In a recent interview for the Financial Times, Costis Maglaras, who serves as the dean for Columbia Business School, emphasized the importance of recognizing and adopting digital transformation. “We need to embrace how tech and data algorithms are actually transforming different businesses”, explains Mr. Maglaras, “Data analytics is essentially transforming pretty much every industry”.
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Read the full story on the Wall Street Journal.
-Paola Gasca, Analyst