Transamerica is part of the Netherlands-based Aegon group, which is supervised by the De Nederlandsche Bank (DNB). It is important for foreign-owned insurers such as Transamerica to compete on a level playing field in the United States, but Aegon and other international insurance groups frequently confront overlapping, redundant, and potentially conflicting requirements that are imposed by regulatory authorities in different jurisdictions. Unnecessary compliance costs are ultimately borne by consumers, and conflicting standards could complicate risk management and compromise the soundness of the company's risk management processes.
Transamerica supports efforts among supervisors to streamline supervision of insurance groups. Such efforts can include reliance and deferral to the supervision of the group supervisor, the ability to fulfill U.S. requirements with reporting required by the parent's jurisdiction, and the development and use of global standards. Transamerica opposes regulatory provisions that are motivated solely by a desire to tilt the competitive playing field in favor of U.S.-based insurance groups.
Annuity Suitability/Best Interest
In the wake of the invalidation of the U.S. Department of Labor’s Fiduciary Rule, Transamerica and the broader life insurance industry supported adoption of a “best interest” standard of care for the sale of annuities. The NAIC has now revised its Model Annuity Suitability rule to include a best interest standard, which we expect to be adopted by approximately twenty-five states by year-end 2021. New York remains the only state that has adopted a best interest standard for the sale of life insurance.