Experts Warn of Damage to Transamerica Brand After SEC Action

Transamerica’s latest misstep is the latest in a months-long series of announcements that threaten to tarnish the insurer. What’s important now are the company’s next moves, brand consultants say.

On Monday, the Securities and Exchange Commission said affiliates of Baltimore-based Aegon USA — Transamerica’s corporate parent and a subsidiary of the Dutch insurance giant Aegon N.V. — will have to shell out more than $97 million because of faulty investment models used in variable annuity and life insurance contracts, among others.

Transamerica has also faced scrutiny over the past year for lawsuits by policyholders stemming from cost of insurance increases, an outsourcing of its workforce, and fines imposed on the carrier by New York’s regulator. Failing to take action to counter bad headlines could lead to depressed sales and challenges acquiring and retaining customers, the consultants warn.

Debra Russell is quoted as an expert. We can all learn from this.