Aflac 2012 Annual Report Download - page 16

Pillar Products: Medical and Cancer Insurance
The foundation of our product portfolio has been, and continues to be, cancer and medical insurance products. In 2012,
Aflac Japan remained the leading seller of cancer and medical products in Japan. Strong results like this affirm Aflac’s
reputation as a product innovator and trusted brand.
Building on this solid foundation, we continue to update our two pillar products to meet the evolving needs of consumers
while also leveraging our brand, administrative efficiency, and distribution.
MEDICAL PRODUCTS
Aflac Japan has honed its ability to customize our product
portfolio to appeal to new market segments by enhancing
the benefits of our existing product line. A good example
has been our expanding suite of medical products that
we’ve successfully created over the last decade. In early
2002, we introduced EVER, a stand-alone, whole-life
medical product. Following the introduction of EVER, Aflac
quickly became the leading seller of medical insurance in
Japan. Since then, we have continued to create variations
of EVER to appeal to new market segments and achieve
greater market penetration. In 2009, we introduced a new
generation of our EVER product with enhanced surgical
benefits and gender-specific premium rates. In January
2012, we further strengthened our medical portfolio and
upgraded our New EVER product, improving it to include
even more advanced medical treatment options than
its predecessor. In July 2012, we launched an enhanced
version of Gentle EVER, our nonstandard medical product
that was originally introduced in 2007. This product
allows us to extend our reach by providing much-needed
coverage for consumers who are not able to qualify for our
popular New EVER policy.
CANCER PRODUCTS
In September 2007, we introduced Cancer Forte, the first
major product revision we had made to our base cancer
policy since 2001. In June 2010, we introduced Corsage,
a female-specific cancer rider to appeal to younger
Japanese women. In March 2011, we introduced DAYS, our
new base cancer policy and DAYS Plus, which upgrades
older cancer policies. DAYS replaces Cancer Forte,
most notably with enhanced outpatient and anticancer
medication benefits.
ORDINARY LIFE PRODUCTS
In December 2007, banks were permitted to sell the
traditional health-related products that Aflac offers to
its customers for the first time. As the bank channel has
become a larger contributor to sales, Aflac Japan has
also been enhancing its product portfolio to better meet
the needs of banks, including the addition of a product
called WAYS. This unique hybrid whole-life product can
be converted to a fixed annuity, medical coverage or
nursing care benefits when the policyholder reaches a
predetermined age. WAYS was again the primary driver
of Aflac Japan’s remarkable sales growth in 2012. Life
insurance products including WAYS contributed about
65% to new sales in 2012 primarily as a result of success
through the banks. Selling our products through banks has
given us additional opportunities to connect with more
consumers, many of whom we believe will be receptive to
our other products such as our pillar third sector cancer
and medical products. We’ve already cycled through the
first major pass at selling ways to a large portion of many
banks’ customers, and expect sales of WAYS to be down
significantly in 2013.
We believe our ability to develop innovative and
affordable insurance policies will continue to play an
important role in the future. We will continue to update
our products to better reflect changes in medical
treatments and to further identify opportunities to
respond to the changing needs of consumers.
In July 2012, we launched a campaign featuring Tama, a 13-year-
old cat that is famous throughout Japan, to market our recently
introduced More Gentle EVER product. Five years ago, Tama
showed up at the Wakayama Electric Railway train station in
Kinokawa, Japan, and has been a star there ever since. She was
appointed “stationmaster” of Wakayama Railway’s Kishi Station
on the Kishikawa Line and since then has become very popular
with tourists and the paparazzi. Tama has been the subject of
various television programs including documentaries on CNN
and Animal Planet, both of which have been very popular with
Japanese consumers. Tama often sits on top of the train’s ticket
gate – in uniform – as if she is checking tickets. We’ve leveraged
Tama’s popularity to maximize our sales opportunities and
further connect with consumers through innovative marketing
campaigns for our product portfolio.
14 AFLAC INCORPORATED 2012 YEAR IN REVIEW