Product design in the life insurance industry is a time consuming process involving considerable cost – both real and economic. For a low-margin product such as term life, decision makers could be justified in arguing that developing new term products just doesn’t make the best use of limited resources and capital.

As a leading term life reinsurer, Transamerica Reinsurance has extensive experience in term life design. Among the services we provide is a term product development program that takes advantage of our broad mortality experience and cost structure, assuring our clients that our product designs will be among the most competitive for their markets.

Transamerica Reinsurance has been working in the product development and private label business now for over ten years. Our programs benefitted from starting from scratch, avoiding the legacy problems associated with other private label solutions. But in that 10-plus years we have built a track record of success and improvements that is unique to the reinsurance industry.

Product Development Opportunities
A company that enters into a product development solution with us will have a term life product tailor made to meet their strategic goals and target market. We do the legwork for the customer, including market analysis, product design, state form filing and support. In addition, we periodically review market conditions to ensure that the product we have designed for our client remains competitive in the desired market.

All of this comes wrapped in an attractively priced reinsurance agreement with the development costs amortized over the duration of the treaty – a further example of our commitment to the product’s competitiveness. We do not view product development as the end of the process, but rather as part of a long-standing marketing commitment with our clients. On average, we seek at least a two- to three-year relationship with clients through this program.

From a la Carte Services to Full Private Label
On top of this, the client may seek to outsource additional services, such as underwriting management, policy administration, call center services and other business fulfillment services to add further value to the product we have designed. In such cases, we provide these and other add-on features, which the client may choose to build into the term product.

Further down the spectrum, Transamerica Reinsurance also offers full private label options for companies who wish to keep their resource commitment to the term market to a minimum. With a complete private label life solution, risk for the client is essentially reduced to the sales commitment.

The term life market is a tough market with razor thin margins. But for many companies it’s also a market they cannot afford to ignore. For those companies who would prefer to commit their limited resources to more profitable business lines, Transamerica Reinsurance has the resources to help them maintain a viable footprint in the term market.