Transamerica to Outsource Life, Voluntary Benefits and Annuity Administration

Tata Consultancy Services is a Mumbai, India-based affiliate of the Tata group. To support the Aegon deal, it will set up a new North American insurance operations hub in Cedar Rapids, Aegon said.

Tata has invested $3 billion in the United States over the past three, and it has contributed to schools such as Carnegie Mellon University, Cornell and the Massachusetts Institute of Technology, Aegon said. 

Suresh Muthuswami, a Tata Consultancy Services executive, said in a statement about the agreement is that Transamerica would be the first client to use Tata Consultancy Services as a third-party insurance administrator in the United States.

What’s Included, and What’s Not

Transamerica will continue to administer long-term care insurance (LTCI) policies in-house, for now, but it may enter into a similar outsourcing arrangement with Tata for the LTCI business, Aegon said.

Transamerica plans to continue to handle administration of retirement plans, individual retirement accounts, mutual funds, exchange-traded funds, stable-value arrangements and its Advice Center through the programs in place now, Aegon said.

Transamerica’s Strategy

Mark Mullin, Transamerica’s chief executive officer, said in a statement that the new arrangement will support meaningful growth in all business lines, including insurance and annuities.

Tata “will provide valuable administration and quality customer service,” Mullin said. “Transamerica will continue to engage with our customers, clients and advisors in ways that are most meaningful to them, by utilizing our digital engagement platforms and by developing new solutions to help people save, protect, invest and retire.”

—Read Canadian Pension Board Reinsurance Arm Closes on Aegon Deal on ThinkAdvisor.

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