Just recieved word that Transamerica is being pulled from the market immediately. Kind of odd that one of the most popular GUL products in the market is being pulled immediately without any advance notice. Anyone have any details? They didnt provide any in the discontinuation notice.
Transamerica Pulls Transace Immediately???
- Thread starter Strike
- Start date
- 25,010
I have not gotten that. I have been getting their almost daily rate changes. And the term changes
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- #4
- 29,511
Nothing there. You have to have 20 posts to put a link. Try copy and pasting.
- 25,010
Does not open on a phone. What does it say?
- 10,340
I have heard the same rumors today. It isnt an official announcement from the company yet. Just rumors.
Dang, looks like it IS true...
As you're aware, the interest rate environment has been difficult for years. In order to continue offering the desired coverage, we developed innovative Real Time PricingSM on our TransACE® products.
Unfortunately, the interest rate environment has continued to deteriorate and we've therefore made the difficult decision to exit the market.
As a result, we are withdrawing two of our TransACE products for new sales, effective immediately. The following products are no longer available for sale in any jurisdictions.
• TransACE
• TransACE Survivor®
In addition to withdrawing these products for new sales, we have also stopped processing applications in underwriting and new business. We will be sending letters to affected applicants (and any premium refunds), with copies to General Agencies. Policies that are already out for delivery are not impacted. However, there will be no extensions of delivery periods.
We have also stopped processing applications that involve 1035 exchanges unless the request for funds has been sent to the existing carrier. The normal Real Time Pricing guidelines will apply to these cases while we are acquiring the 1035 funds from the existing carrier. We will issue the policy and apply the 1035 funds when they are received.
We understand what this decision means for general agents, producers and customers. We believe in the value of UL products but the current TransACE design is no longer sustainable in this economic environment. We are reviewing our UL product offerings and will seek consumer input as we develop a new design.
As you're aware, the interest rate environment has been difficult for years. In order to continue offering the desired coverage, we developed innovative Real Time PricingSM on our TransACE® products.
Unfortunately, the interest rate environment has continued to deteriorate and we've therefore made the difficult decision to exit the market.
As a result, we are withdrawing two of our TransACE products for new sales, effective immediately. The following products are no longer available for sale in any jurisdictions.
• TransACE
• TransACE Survivor®
In addition to withdrawing these products for new sales, we have also stopped processing applications in underwriting and new business. We will be sending letters to affected applicants (and any premium refunds), with copies to General Agencies. Policies that are already out for delivery are not impacted. However, there will be no extensions of delivery periods.
We have also stopped processing applications that involve 1035 exchanges unless the request for funds has been sent to the existing carrier. The normal Real Time Pricing guidelines will apply to these cases while we are acquiring the 1035 funds from the existing carrier. We will issue the policy and apply the 1035 funds when they are received.
We understand what this decision means for general agents, producers and customers. We believe in the value of UL products but the current TransACE design is no longer sustainable in this economic environment. We are reviewing our UL product offerings and will seek consumer input as we develop a new design.
- 10,340
They must have made a big bet that Treasury Yields would rise by now... and since yields have dropped, it probably hurt them big time. I doubt they had much of a margin on that product the way it was priced.
My guess is that the 2014 TransAce pricing was based on assumed yields of 3% in 2015. (as most economists predicted)
Instead we have yields of 1.75%. If this keeps up look for many more product/price changes across the insurance industry.
But to cancel policies that are in UW?? That is just crazy stupid on their part. They must be taking a real bath on the rates to do something that crazy. Agents will not forget (or forgive) crap like this. And consumers are more unforgiving than us agents are!!
Trans has never given me a warm fuzzy feeling when I have dealt with them in the past. I know a lot of you guys use them a good bit. I hope everyone affected by this recovers their cases ok.
My guess is that the 2014 TransAce pricing was based on assumed yields of 3% in 2015. (as most economists predicted)
Instead we have yields of 1.75%. If this keeps up look for many more product/price changes across the insurance industry.
But to cancel policies that are in UW?? That is just crazy stupid on their part. They must be taking a real bath on the rates to do something that crazy. Agents will not forget (or forgive) crap like this. And consumers are more unforgiving than us agents are!!
Trans has never given me a warm fuzzy feeling when I have dealt with them in the past. I know a lot of you guys use them a good bit. I hope everyone affected by this recovers their cases ok.
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- 15,041
That was exactly my thought, a real **** move.
I can't believe anyone in marketing or even legal wasn't asked about that. I get that they messed up the interest assumptions, but to go and cancel pending apps? That just shows a complete disregard for their policyholders. They are going to do the minimum they are legally obligated to do and nothing more. They won't even pretend to care.
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