Businessweek

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, markets and administers supplemental health and life insurance. The company also offers voluntary insurance policies that provide a layer of financial protection against income and asset loss. It conducts insurance business in various 50 states, the District of Columbia, various United States (U.S.) territories, and Japan. The company operates in the U.S. (Aflac U.S.) and as a branch in Japan (Aflac Japan). Majority of its policies are individually underwritten and marketed through independent agents. Aflac U.S. markets and administers group products through Continental American Insurance Company branded as Aflac Group Insurance. Aflac Japan sells voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities. Aflac U.S. sells voluntary supplemental insurance products including products designed to protect individuals from depletion of assets (accident, cancer, critical illness/ critical care, hospital intensive care, hospital indemnity, fixed-benefit dental, and vision care plans), and loss-of-income products (life and short-term disability plans). Insurance Products – Japan Aflac Japan’s insurance products are designed to help consumers pay for medical and nonmedical costs that are not reimbursed under Japan’s national health insurance system. Aflac Japan’s product portfolio has expanded beyond traditional health-related products to include various life products. Some of the life products that the company offers in Japan provide death benefits and cash surrender values. These products are available as policies and riders. Some plans, such as its WAYS product, have features that allow policyholders to convert a portion of their life insurance to medical, nursing care, or fixed annuity benefits at a predetermined age. Its child endowment product offers a death benefit until a child reaches age 18. It also pays a lump-sum benefit at the time of the child’s entry into high school, as well as an educational annuity for each of the four years during college education. Aflac Japan’s medical product, EVER, offers a basic level of hospitalization coverage with an affordable premium. New EVER offers improved surgical benefits and gender-specific premium rates. The upgrade to its New EVER product, released in January 2012, includes various advanced medical treatment options. Gentle EVER, its non-standard medical product is designed to meet the needs of various consumers who cannot qualify for its base EVER plan. The cancer insurance plans the company offers in Japan provide a lump-sum benefit upon initial diagnosis of internal cancer and benefits for treatment received due to internal cancer, such as fixed daily benefits for hospitalization, outpatient services and convalescent care, and surgical and terminal care benefits. In 2011, it introduced a new base cancer policy, DAYS; and a bridge policy, DAYS PLUS, which upgrades older cancer policies. The company also offers traditional fixed-income annuities and care policies. Insurance Products – U.S. The company designs its U.S. insurance products to provide supplemental coverage for people who already have major medical or primary insurance coverage. Majority of its U.S. policies are individually underwritten and marketed through independent agents. Additionally, the company markets and administers group insurance products. The company’s individually issued policies are portable and pay regardless of other insurance. Benefits are paid in cash directly to policyholders; therefore, its customers have the opportunity to use this cash to help with expenses of their choosing. Its individually issued health insurance plans are guaranteed-renewable for the lifetime of the policyholder (to age 75 for short-term disability policies). The company’s group insurance policies are underwritten on a group basis. Aflac U.S. offers accident coverage on both an individual and group basis. These policies are designed to protect again