Cigna 2015 Annual Report Download - page 41

PART I
ITEM 1. Business
competitors with industry consolidation among financial institutions
Industry Developments
and other affinity partners.
Pressure on social health care systems, a rapidly aging population and Data privacy regulation has tightened in all markets in the wake of
increased wealth and education in developing insurance markets are data privacy news scandals, impacting affinity partner and customer
leading to higher demand for products providing health insurance and attitudes toward direct marketing of insurance and other financial
financial security. In the supplemental health, life and accident services.
business, direct marketing channels continue to grow and attract new
Group Disability and Life
Disability absence management model that reduces overall costs to employers
Integration of disability products with medical and specialty offerings, promoting health, wellness and optimizing employee
productivity
Complementary portfolio of group disability, life and accident offerings
Disciplined underwriting, pricing and investment strategies supporting profitable long-term growth
Short-term disability Group universal life Insurance brokers and consultants
Long-term disability Personal and voluntary accident Sales representatives
Leave administration Business travel accident
Basic-term life Critical illness and Accidental injury
Voluntary term life
National
Middle Market
Select
Our Group Disability and Life business markets its products and services in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin
Islands and Canada.
to employers. This integration also provides early insight into
Products and Services
employees at risk for future disability claims. Coordinating the
administration of these disability programs with medical programs
Group Disability
offered by our health care business provides enhanced opportunities to
Long-term and short-term group disability insurance products influence outcomes, reduce the cost of both medical and disability
generally provide a fixed level of income to replace a portion of wages events and improve the return to work rate. The benefits of this
lost because of disability. Group disability coverage is typically integrated approach also include:
employer-paid or a combination of employer and employee-paid, but
using information from the health care and disability databases to
also may include coverage paid for entirely by employees. As part of
help identify, treat and manage disabilities before they become
our group disability insurance products, we also provide assistance to
longer in duration or chronic and more costly; and
employees in returning to work and assistance to their employers in
managing the cost of employee disability. We are an industry leader in proactively reaching out to assist employees suffering from a mental
helping employees return to work quickly, resulting in higher health or chronic condition, either as a primary condition or as a
productivity and lower cost for employers and a better quality of life result of another condition.
for their employees.
Our disability products and services are offered on a fully insured,
We seek to integrate the administration of our disability insurance experience-rated and ASO basis, although most are fully insured. As
products with other disability benefit programs, behavioral programs, measured by 2015 premiums and fees, disability constituted 48% of
medical programs, social security advocacy, and administration of this segment’s business. Approximately 14,300 insured disability
federal and state Family and Medical Leave Act (‘‘FMLA’’) laws and policies covering approximately eight million lives were in force as of
other leave of absence programs. We believe this integration provides December 31, 2015.
our customers with increased efficiency and effectiveness in disability
claims management, enhances productivity and reduces overall costs
CIGNA CORPORATION - 2015 Form 10-K 11
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How We Win
Products and Services Distribution Channels
Customer Segments