Aflac 2015 Annual Report Download - page 19

Aflac Incorporated Year in Review 2015 | 17
training and support that not only ensure
the success of our alliance, but more
importantly, the best experience for
customers throughout Japan.
Relevant Products That
Respond to Consumers’ Needs
For many years, Japanese citizens have
seen health care costs increase amid an
aging population and declining birthrate.
The people of Japan are covered by a
national health care insurance system
that provides a baseline level of medical
insurance for its citizens. However,
it does not cover all medical-related
expenses. Over the last four decades,
since our entrance into the Japanese
market, Japanese citizens have had
to take on more financial responsibility
for their medical care, including out-of-
pocket health care expenses. Today,
most consumers under Japan’s national
health care system currently pay 30%
of covered medical costs. Rising health
care costs have driven the majority of
Japanese consumers to seek private
insurance to help cover rising out-of-
pocket expenses. Aflac’s trusted brand
and relevant products provide options
that millions continue to seek as they
struggle to bear the financial burden
of higher medical expenses.
The foundation of our product portfolio
has been, and continues to be,
supplemental health products such as
cancer and medical insurance, referred
to as third sector insurance in Japan
(see chart on page 14). Over the last
four decades, we’ve customized our
products to respond to the changing
needs of Japanese consumers as well
as advances in medical treatments
and modifications in Japan’s health
care delivery system. While we also sell
several life products that are part of
Japan’s first sector insurance category,
our focus remains on selling third sector
products, which are less interest rate
sensitive, and limiting the sale of level-
premium first sector products that are
used to facilitate cross selling of
third sector products.
To ensure we remain in step with
the wants and needs of Japanese
consumers and our distribution
channels, Aflac Japan continually
enhances its portfolio of products.
In September 2014, we introduced
New Cancer DAYS, the latest revision
to our cancer product offering, which
also includes a product sold exclusively
through Japan Post. In June 2015, we
introduced an enhancement to EVER,
the medical product we first introduced
in 2002. We have made various revisions
over the years to our suite of EVER
products. Our most recent enhance-
ment offers riders that address critical
diseases such as cancer, heart
attack, and stroke.
Rising health care costs have driven the majority
of Japanese consumers to seek private insurance
to help cover rising out-of-pocket expenses.