Transamerica supports regulatory capital standards that are tailored to the long-term life insurance business models. The life insurance business model is unique in that many products are held by consumers for decades. A capital standard, therefore, should reflect a “buy and hold” mindset and should avoid extreme volatility.
Transamerica also supports standards promote a level competitive playing field. Capital standards should fairly apply to all categories of insurers, not just a subset such as larger companies or international groups.
Transamerica also supports a supervisory framework that avoids redundant and conflicting standards. Redundant standards drive up compliance costs, many of which are ultimately borne by consumers. Conflicting standards complicate risk management and could compromise the soundness of the company’s risk management processes.