Aflac 2008 Annual Report Download - page 17

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13
It’s no mystery how Aflac makes a difference.
bridge policy in 2008 that allows existing
policyholders to upgrade their coverage to
that of Cancer Forte.
Given the challenges facing Japan’s national
health care system, we also believe the
fundamental need for supplemental medical
products remains strong. Since first launching
a stand-alone medical product called EVER in
2002, we have been the number one seller
of medical insurance policies in Japan. In the
last five years, we have segmented the market
by developing variations of EVER that appeal
to specific types of Japanese consumers,
including our most recent medical product
Gentle EVER, which we introduced in August
2007. Gentle EVER provides an affordable
alternative to help consumers who may have
a health condition that would exclude them
from purchasing other EVER products.
In November 2008, we introduced a new
product to the market called Sanjuso. This
innovative new offering is a single-premium
product that provides lump-sum payments
upon the diagnosis of cancer, heart attack
or stroke, as well as a death benefit. It was
primarily designed for the bank channel. Initial
sales of Sanjuso were undoubtedly impacted
by the financial crisis. However, we believe it
will fit well in bank agents’ product portfolios,
particularly those of the mega banks and larger
regional banks in Japan.
New Distribution Opportunities
Broaden Sales Platform
In terms of distribution, 2008 presented new
avenues for selling our products. Japan’s
Financial Services Agency (FSA) approved
the over-the-counter sale of additional
insurance products, including the kind sold
by Aflac. Although we have been selling to
employees of Japan’s banks since we first
entered the market more than 30 years ago,
2008 was the first time we were permitted
to sell over the counter to customers
of banks. We believe our long-standing
and far-reaching relationships within the
banking sector have given us an advantage
in developing this channel and have been
Policies Annualized Total New Total
and Riders Premiums Annualized Number of
In Force* In Force** Premiums** Agencies
2008 29,020 ¥1,161,662 ¥114,692 18,882
2007 28,443 1,125,561 114,636 18,461
2006 27,334 1,083,127 117,455 18,432
2005 26,014 1,027,762 128,784 17,960
2004 24,477 961,895 122,525 16,410
2003 23,097 900,251 121,170 14,643
2002 21,867 834,424 108,320 12,056
2001 20,802 782,249 91,865 9,839
2000 19,674 740,445 99,755 8,938
1999 18,510 696,622 87,043 8,283
*In thousands **In millions
Aflac Japan
Sales Results
Aflac Japan did not achieve its
sales objective, although total
new annualized premium sales
were up slightly for the year.
“ How lucky we were to have Aflac cancer insurance! That is really all I can say.
It is because of Aflac that my husband was able to stay in a private room and
get more than adequate treatment and care. We are very thankful.”
—Claimant’s spouse; Kansai area, Japan