Aflac 2011 Annual Report Download - page 14

12 AFLAC INCORPORATED 2011 YEAR IN REVIEW
“After I filed my claim, I was surprised that the payment was so quick. Because of the insurance, I am able to go through treatment with ease.” – policyholder from Hyogo, Japan
Awa Bank, a bank
valued by people and busi-
nesses in its region, will
continue to offer a wide
array of financial solu-
tions best suited to
customer needs.
AFLAC JAPAN
DISTRIBUTION
THE BANK CHANNEL
SOARS TO NEW HEIGHTS
Sales of Aflac products
through banks increased
133.9% over 2010.
Aflac Japan was represented
by 370 banks at the end of
2011, or more than 90% of
the total number of banks in
Japan.
While there are still further
sales opportunities in this
market, growth is unlikely to
be as rapid as it has been in
recent years.
TRADITIONAL SALES
CHANNELS AND STRATEGIC
ALLIANCES
Aflac Japan recruited
approximately 5,000 new
sales agencies, up 3.8%
over 2010.
Aflac Japan was represented
by more than 19,700 sales
agencies at the end of
2011, equating to more
than 120,700 licensed sales
associates employed by
those agencies.
Dai-ichi Life: In 2001, we
began a partnership with
Dai-ichi Life, and since that
time, this alliance has been
very successful, selling
approximately 81,700 of
our market-leading cancer
policies in 2011.
AFLAC JAPAN’S PRODUCTS:
Japan’s product portfolio has expanded beyond traditional
health-related products to better serve Japanese consumers
and our growing distribution channels. Aflac develops relevant
products and sells them through expanding distribution
channels, which yield new accounts and customers. In
remaining focused and disciplined with this strategy, in 2011
we gained greater access to potential customers.
PRODUCT NEED: Japan’s population is covered by a compulsory and
universal health care insurance system. While the system provides some
level of coverage for its citizens, it does not cover all of its citizens’ expenses.
Over the last three decades, Japanese consumers have been required to pay
more out of their own pockets toward their health care. When we entered
Japan in 1974, most citizens paid no copayments, and now most pay 30% of
all medical costs. This steep hike is largely due to Japan’s aging population,
declining birthrate and the burden of medical expenses that may
further increase if receiving treatment from state-of-the-art
medical advances that are not covered by the national health
care insurance system.
Aflac Japan’s product development team continually
researches financial burdens Japanese consumers face and
how to present them to potential policyholders. These findings
equip Aflac Japan with valuable information to create innova-
tive and customized products along with benefits that respond
to the specific needs of consumers and the distribution
channels that sell to them.