Cigna 2010 Annual Report Download - page 22

CIGNA CORPORATION  2010 Form 10K
2
PARTI
ITEM 1 Business
C. Strategy
As a global health service organization, CIGNA’s mission is to help
the people it serves improve their health, well-being and sense of
security. As part of this mission, the Company remains committed
to health advocacy as a means of creating sustainable solutions for
employers, improving the health of the individuals that the Company
serves, and lowering the costs of health care for all constituencies.
CIGNA’s long-term growth strategy is based on: (1) growth in
targeted geographies, product lines, buying segments and distribution
channels; (2) improving its strategic and fi nancial fl exibility;
and (3) pursuing additional opportunities in high-growth markets
with particular focus on individuals. Our strategy can be summarized
as follows:
•“Go deep” with growth in targeted customer segments, geographies,
buying segments and distribution channels,
•“Go individual” by delivering high quality products and services
which improve health, wellness and insurance needs that are helpful
and easy to use, and
•“Go global” by pursuing additional opportunities in high-growth
markets across the globe and serving individuals regardless of where
they live and work.
To achieve these goals, CIGNA expects to focus on the following
which have the most potential for profi table growth:
•Domestic Health Care segment. In this market, CIGNA is focused
on expanding and deepening client and customer relationships
across each segment. Specifi cally: (1) within key geographic
segments, growing the “Select” market, which generally includes
employers with more than 50 but fewer than 250 employees and
the “Middle Market” segment which generally includes employers
with more than 250 but less than 5,000 employees, by leveraging
the Company’s customer knowledge, diff erentiated service model,
product portfolio and distribution model, (2) engaging those
national account employers who share and will benefi t from
the Company’s value proposition of using health advocacy and
employee engagement to increase productivity, performance and
the health outcomes of their employees, and (3) targeting sub-
markets including industry, government and municipal entities and
individuals that align closest to the Company’s stated strategy.
•In the Disability and Life segment, CIGNA’s strategy is to grow
its Disability business by fully leveraging the key components of
its industry-leading disability management model to reduce costs
for its clients and return their employees to work sooner through:
(1) eff ective customer engagement and early outreach, (2) a
full suite of clinical and return-to-work resources to support the
employer’s ability to manage disability and work related events,
and (3) specialized case management services that address an
individual’s unique needs.
•In the International segment, CIGNA continues to expand the
product and geographic footprint by executing local strategies
that grow supplemental, primary medical and expatriate benefi ts
through: (1) product and channel expansion in its supplemental
health, life, and accident business in key Asian geographies, (2) the
introduction of new expatriate benefi ts products, that provide greater
benefi t and geographic fl exibility to individual and employers (such
as through the Vanbreda International acquisition); and (3) further
expansion of distribution capabilities to capitalize on emerging and
growing markets globally.
 e Company plans to improve its strategic and fi nancial fl exibility
by driving further reductions in its Health Care operating expenses,
improving its medical cost competitiveness in targeted markets and
eff ectively managing balance sheet exposures. For further discussion
of the Company’s actions to manage its balance sheet exposures, see
the section on “Run-off Operations” in the Introduction section of
Management’s Discussion and Analysis of Financial Condition and
Results of Operations (“MD&A”) beginning on page 35.
Details on the Company’s operational strategies are discussed further
in the Health Care segment section of the MD&A beginning on
page 48 of this Form 10-K.
D. Health Care
CIGNA’s Health Care segment (“CIGNA HealthCare”) off ers
insured and self-insured medical, dental, behavioral health, vision,
and prescription drug benefi t plans, health advocacy programs
and other products and services that may be integrated to provide
comprehensive health care benefi t programs. CIGNA HealthCare
companies off er these products and services in all 50 states, the
District of Columbia and the U.S. Virgin Islands.
CIGNA HealthCare believes the most sustainable approach to
enhancing quality and managing health care costs is to fully engage
individuals in the decisions that aff ect their health and the health
care services they receive. Accordingly, to assist individuals in making
informed choices about health care for themselves and their families,
CIGNA HealthCare makes available to them actionable information
about health and advocacy programs, as well as about the cost and
quality of health care services and supplies provided to them.
Underlying CIGNA HealthCare’s operations is a foundation of
clinical expertise and an ability to provide quality service. CIGNA
HealthCare’s strengths include its ability to:
•integrate medical and specialty product off erings to achieve a
more holistic and integrated approach to individuals’ health that
promotes consistent care management; and
•provide predictive modeling and other analytical tools (for example,
through the Company’s exclusive access to analytical tools and
algorithms developed by the University of Michigan), to assist
in providing targeted outreach and health advocacy by CIGNA’s
clinical professionals to CIGNA HealthCare customers.
Principal Products and Services
CIGNA off ers a variety of products and services to employers and
other groups that sponsor group health plans. With the exception of
Health Maintenance Organization (“HMO”), Medicare, Voluntary
and stop loss products, each of CIGNA HealthCare’s products is
off ered with alternative funding options (described below). CIGNA
may sell multiple products under the same funding arrangement to
the same employer. Accordingly, the revenue table included in the