Aflac Incorporated
AFLAC Incorporated was incorporated in 1973 under the laws of the state of Georgia.
AFLAC Incorporated (the Parent Company) is a general business holding company
and acts as a management company, overseeing the operations of its subsidiaries
by providing management services and making capital available. Its principal business
is supplemental health and life insurance, which is marketed and administered
primarily through its subsidiary, American Family Life Assurance Company of Columbus
(AFLAC). AFLAC operates in the United States (AFLAC U.S.) and as a branch in Japan
(AFLAC Japan).
Most of our insurance policies are individually underwritten and marketed at
worksites through independent agents, with premiums paid by the employee. We
believe AFLAC is the world's leading writer of individually issued policies
marketed at worksites. We continue to diversify our product offerings in both
Japan and the United States. AFLAC Japan sells cancer plans, care plans, general
medical expense plans, medical/sickness riders to our cancer plan, a living
benefit life plan, and an accident plan. AFLAC U.S. sells cancer plans and various
types of health insurance, including accident and disability, fixed-benefit
dental, personal sickness and hospital indemnity, hospital intensive care, long-term
care, and short-term disability plans. We also offer several life insurance
plans in Japan and the United States.
Competition - Japan
In 1974, AFLAC became the second foreign (non-Japanese) life insurance company
to gain direct access to the Japanese insurance market by obtaining an operating
license. Through 1981, we were the only company in Japan authorized to sell
a cancer life insurance policy. In January 2001, Japan's insurance market was
deregulated, and we experienced an increase in the number of companies selling
products that compete with our policies. However, based on our growth of premiums
in force, producing agents and customer accounts, we do not believe that our
market position has been significantly impacted by increased competition as
a result of deregulation. Furthermore, we believe the continued development
and maintenance of operating efficiencies will allow us to offer affordable
products at a better value to consumers.
Competition - U.S.
There are approximately 2,000 life and accident and health insurance companies
operating in the United States. We compete against several insurers on a national
basis plus other insurers regionally. We believe that our policies and premium
rates as well as the commissions paid to our sales agents are competitive with
those offered by other companies providing similar types of insurance. However,
we believe that our U.S. business is distinct from our competitors because of
our product focus, distribution system, and name awareness. For most of the
other companies that sell supplemental insurance, it represents a secondary
business. For us, it is our only business and allows us to focus on exploring
new product opportunities while also enhancing our existing products. By doing
so, we believe we offer the best value in the market.
Tweet
59.07 %