Citigroup analyst suggests Google buy AIG

• The trend of "modular finance" in which technology forces financial firms to be best of breed for each product and cuts the advantage of being "full service" hasn't spread to insurance, says Citi's Todd Bault, noting the interconnected and hard-to-automate nature of the industry.
• "While it is clear that P&C insurance fails modularity in several ways (e.g. business is sold in programs, not lines of business), AIG superficially seems modular (Life vs. P&C), but has an extensive history of interconnectedness that is a bigger problem than it seems."
• What the insurance industry (and AIG) may need, says Bault, is a tech firm like Alphabet (GOOG, GOOGL) teaming with an investment bank to buy AIG and turn it into an insurance FinTech lab.