Aflac 2010 Annual Report Download - page 19

Aflac Products: Group and
Individual Options Under One Wing
We are continually working on initiatives
designed to serve consumers and
employers by offering them protection
under Aflac’s strong wing. Our
administrative efficiency and ability to
control expenses have resulted in low
operating expense ratios in the United
States, which allows us to create products
that provide excellent value to consumers
while paying competitive commissions.
For more than five decades, Aflac U.S.
focused on equipping sales associates
with individually underwritten voluntary
products, with premiums paid by the
employee through payroll deduction at the
worksite. Market conditions have been
evolving over the years, and a 2009 study
by Eastbridge showed that group products
represent almost 50% of the total voluntary
insurance market in the United States. We
acquired Continental American Insurance
Company (CAIC), now rebranded as
Aflac Group Insurance, in October 2009,
to augment our product portfolio with
an attractive offering of voluntary group
insurance products. The group product
categories we gained through this
acquisition synchronized very well with our
current individual product portfolio and
included accident, critical illness, hospital
indemnity, life, and disability policies.
These group products are well-suited
for distribution by insurance brokers to
larger-case accounts with 100 or more
employees. Sales from our traditional field
force of individual sales associates were
enhanced by our new group products as
well. As we integrate these group offerings
into our product portfolio, we are aligning
the design of our group and individual
The Brentwood Police Department protects the citizens of Brentwood,
Tennessee, day in, day out. Since 1973, Aflac policies have helped
financially protect the men and women in blue, along with all of the
employees who work for the City of Brentwood, with products that provide
cash benefits fast when a health event causes financial challenges.
Assistant Police Chief Jeff Hughes has been an Aflac policyholder for more
than a decade. He knows he can count on Alan Foster, Aflac district sales
coordinator, to be there when he or anyone on his staff needs help.
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A f l A c u . s . P r o D u c t s
INCOME-LOSS PROTECTION
• Short-term Disability
• Life
- Term
- Whole-life
ASSET-LOSS PROTECTION
• Accident
• Cancer
• Critical Illness
• Hospital Intensive Care
SUPPLEMENTAL MEDICAL
• Hospital Indemnity
• Dental
• Vision
product offerings to respond to the needs
of our customers. From the customer
perspective, this provides the opportunity
to supplement their existing benefit
package in the best way, whether it’s
through group, individual, or both. From
a sales associate or broker perspective,
it will allow them to focus more on the
group/individual product option and less
on explaining the differences in benefits.
Aflac’s Sales Force:
Focused on the Future
No other company has been able to
establish a dedicated field force network
like we have at Aflac. We have more than
72,500 licensed sales associates and
brokers to sell our products. However,
we believe extended unemployment
benefits negatively impacted our ability to
recruit new sales associates. In addition,