Aflac Incorporated (pronounced /ˈæflæk/) is the largest provider of supplemental insurance in the United States,[1] founded in 1955 and based in Columbus, Georgia. In the United States, Aflac underwrites a wide range of insurance policies, but is perhaps more known for its payroll deduction insurance coverage, which pays cash benefits when a policyholder has a covered accident or illness. The company states it insures "one of four Japanese households" and is "the largest life insurer in Japan in terms of individual insurance policies in force".[2] Aflac is also well known for its supplemental medical policies.
Aflac currently is the number one Supplemental Health provider in the U.S., followed closely by Allstate Workplace Division.
Aflac has a field force of over 70,000 agents in the U.S.
In 2009, Aflac acquired Continental American Insurance Company to expand its coverage beyond voluntary benefits alone.
Aflac Incorporated (Aflac), incorporated in 1973, is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services. Its principal business is supplemental health and life insurance, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Aflac’s business consists of two segments: Aflac Japan and Aflac U.S. 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 loss-of-income products (life and short-term disability plans) and products designed to protect individuals from depletion of assets (hospital indemnity, fixed-benefit dental, vision care, accident, cancer, critical illness/critical care, and hospital intensive care 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. Its WAYS product, allows policyholders to convert a portion of their life insurance to medical, nursing care, or fixed annuity benefits at a predetermined age. Aflac Japan’s stand-alone medical product, EVER, offers a basic level of hospitalization coverage with a premium. In June 2010, the Company introduced a revision to Gentle EVER, its non-standard medical product. The cancer insurance plans the Company offers in Japan provide a lump-sum benefit upon initial diagnosis of internal cancer and a fixed daily benefit for hospitalization and outpatient services related to cancer, as well as surgical, convalescent and terminal care benefits. Its Cancer Forte product offers additional benefits, including payment of outpatient benefits for 60 days, payment of an annuity from the second year through the fifth year after initial diagnosis of cancer, and Premier Support, where Aflac arranges for a third-party to provide policyholders with counseling and doctor referral services upon their cancer diagnosis. In June 2010, the Company introduced a product called Corsage, which is a female-specific rider to its cancer insurance product. Corsage provides surgery benefits that address the high cost of treating female-specific cancers. The Company also offers traditional fixed-income annuities and care policies.
Insurance Products - U.S.
Aflac designs its U.S. insurance products to provide supplemental coverage for people who already have major medical or primary insurance coverage. Its U.S. policies are individually underwritten and marketed through independent agents. Its individually issued policies are portable and pay regardless of other insurance. Benefits are paid in cash directly to policyholders. Its individually issued health insurance plans are guaranteed-renewable for the lifetime of the policyholder (to age 70 for short-term disability policies). Its group insurance policies are underwritten on a group basis and often have some element of guaranteed issue. This coverage is generally not portable, which means the insurance coverage may terminate upon separation from employment or affiliation with the entity holding the group contract.
Aflac U.S. offers short-term disability benefits on both an individual and group basis. Short-term disability policies provide disability benefits with a variety of elimination and benefit period options. The longest, such benefit period offered is two years. Aflac U.S. offers term and whole-life coverage sold through payroll deduction at the worksite on both an individual and group basis and various term and whole-life individual policies on a direct basis. Aflac U.S. offers hospital indemnity coverage on both an individual and group basis. Its hospital indemnity products provide fixed daily benefits for hospitalization due to accident or sickness. Indemnity benefits for inpatient and outpatient surgeries, as well as various other diagnostic expenses, are also available. Its sickness indemnity plan provides a fixed daily benefit for hospitalization due to sickness and fixed amounts for physician services for accident or sickness. This plan is offered on an individually underwritten basis.
Aflac U.S. offers fixed-benefit dental coverage on both an individual and group basis. These policies provide various levels of benefits for dental procedures, including checkups and cleanings. Plan features include fixed benefits without deductibles, network restrictions, or annual rate reviews. Aflac U.S. also offers Vision NowSM, an individually issued policy, which provides benefits for serious eye health conditions and loss of sight. Vision Now includes coverage for corrective eye materials and exam benefits. Aflac U.S. offers accident coverage on both an individual and group basis. These policies are designed to protect against losses resulting from accidents. The accident portion of the policy includes lump-sum benefits for accidental death, dismemberment and specific injuries, as well as fixed benefits for hospital confinement. In addition, other benefits, such as short-term disability are available as riders.
Aflac U.S. offers cancer coverage on an individually underwritten basis. Its U.S. cancer plans are designed to provide insurance benefits for medical and nonmedical costs that are not covered by major medical insurance. Benefits include a first-occurrence benefit that pays an initial amount when internal cancer is first diagnosed; a fixed amount for each day an insured is hospitalized for cancer treatment; fixed amounts for radiation, chemotherapy and surgery, and a wellness benefit applicable toward certain diagnostic tests. Its Maximum Difference individually issued cancer plan incorporates coverage for medical advances in cancer prevention, diagnosis and treatment. Maximum Difference allows customization of coverage to fit varying needs and budgets.
Aflac U.S. offers critical illness/critical care policies on both an individual and group basis. Aflac U.S. offers critical illness plans, which pay lump-sum benefits for critical illnesses such as heart attack, stroke, or even cancer, on both a group and individual basis. Aflac U.S. also offers a critical care policy that pays a combination of lump-sum benefits and ongoing treatment benefits for critical illnesses (except cancer). Aflac U.S. also offers individually issued hospital intensive care plans, which pay benefits for intensive care unit treatment in a hospital.
OVERALL
Beta: 1.74
Market Cap (Mil.): $26,802.07
Shares Outstanding (Mil.): 470.21
Annual Dividend: 1.20
Yield (%): 2.11
FINANCIALS
AFL Industry Sector
P/E (TTM): 12.82 11.71 16.09
EPS (TTM): 33.81 -- --
ROI: -- 0.01 4.58
ROE: 21.02 3.28 9.11
Name Age Since Current Position
Amos, Daniel 59 2001 Chairman of the Board and Chief Executive Officer of the Company and Aflac
Cloninger, Kriss 63 2001 President, Chief Financial Officer, Treasurer, Director; EVP of Aflac
Amos, Paul 35 2007 President of Aflac, Chief Operating Officer - U.S. Operations of Aflac, Director
Lake, Charles 49 2008 Chairman of Aflac Japan
Tonoike, Tohru 60 2007 President and Chief Operating Officer of Aflac Japan
Loudermilk, Joey 57 2000 Executive Vice President, General Counsel, Corporate Secretary of the Company and Aflac
Durant, Martin 62 2008 Executive Vice President, Deputy Chief Financial Officer
Janke, Kenneth 52 2010 Executive Vice President, Deputy Chief Financial Officer
Tillman, Audrey 46 2008 Executive Vice President - Corporate Services
Howard, June 44 2011 Senior Vice President - Financial Services, CAO of the Company and the Aflac; Treasurer of Aflac
Agypt, Ronald 45 2011 Senior Vice President - Aflac Broker Sales
Wilkey, Robin 52 2010 Senior Vice President - Investor Relations
Rogers, Ralph 62 2011 Senior Vice President - Financial Services of the Company and Aflac
Yamauchi, Hiroshi 59 2011 First Senior Vice President - Planning, Government Affairs & Research, Customer Services Promotion, Legal, Risk Management, and Compliance Promotion of Aflac Japan
Isonaka, Jun 53 2010 Senior Vice President, Chief Administrative Officer of Aflac Japan
Arai, Yuji 48 2005 Senior Vice President, Principal Financial Officer of Aflac Japan
Blanck, Susan 44 2011 Executive Vice President - Corporate Actuary of Aflac
Jeffery, W. Jeremy 60 2007 Senior Vice President, Chief Investment Officer of Aflac
White, Teresa 44 2008 Executive Vice President, Chief Administrative Officer of Aflac
Ariyoshi, Koji 57 2010 First Senior Vice President, Director - Marketing and Sales, Aflac Japan
Giddens, Thomas 56 2010 Senior Vice President, Director - Sales
Purdom, E. Stephen 63 1987 Director
Amos, John 58 1983 Director
Harris, Joe 75 1991 Director
Armacost, Michael 73 1994 Independent Director
Hudson, Elizabeth 61 1990 Independent Director
During the 1970s a number of companies, seeing AFLAC's success, introduced cancer policies of their own. By the end of the decade there were about 300 insurers selling cancer coverage. AFLAC, however, handily controlled the market, having sold about 60 percent of all cancer policies. The company, in fact, claimed to be the world's fastest-growing insurance company. Between 1972 and 1977 annual premium income rose 294 percent to $205 million, while earnings jumped to $25 million--a 181 percent increase.
Much of AFLAC's success in the mid-1970s was the result of its entry into the rapidly expanding Japanese market. When Chairman John Amos visited Japan in 1970, he was convinced that it would be an excellent market for his cancer care policies. The Japanese industry, however, was well entrenched, and foreign companies found it virtually impossible to get licensing. Amos was not deterred and quickly formulated a plan to gain acceptance for his company's product in Japan.
When AFLAC was licensed by Japan's Ministry of Finance to sell insurance in 1974, it was only the second U.S. company to be allowed to do so in more than two decades. Part of AFLAC's success came from the fact that it offered a product that was not yet available from Japanese insurers, at a time when cancer awareness was expanding. Another factor was AFLAC's decision to employ retired workers as its agents, a move that impressed both former coworkers--potential policyholders--and the Ministry of Finance. In addition, Amos's choice of company officers was truly inspired: it included many luminaries of the Japanese insurance industry. Furthermore, these executives enlisted the support of the medical community even before AFLAC applied for its license.
Once AFLAC received permission to sell its product, it further moved to insure its own success by signing up large Japanese industrial and financial groups as agents, a variation on the cluster-selling theme. AFLAC paid commissions to the companies, which made the presentations themselves. Huge conglomerates including the Mitsui and Mitsubishi groups and the Dai-Ichi Kangyo and Sanwa banks tapped thousands of their own employees before having to search for customers. The plan was an unprecedented success. Japanese consumers had the money to buy coverage, meticulously paid their premiums, and had a very high rate of policy renewal. By 1987 the Japanese market accounted for two-thirds of AFLAC's total revenues and 70 percent of after-tax earnings.
Just as AFLAC's cancer insurance began taking off in Japan, the cancer insurance industry came under close scrutiny from a number of consumer groups in the United States. Two congressional committees investigated the product. The major complaints were that cancer insurance had limited value because it did not cover the entire cost of the disease and that the companies selling it, including AFLAC, used hard-sell tactics that exploited fear of cancer, particularly in elderly people.
John Amos was characteristically aggressive in defense of his company and its product. In 1979 AFLAC sued American Broadcasting Company (ABC) for alleged damages that resulted from a segment on insurance fraud on the network's 'World News Tonight' program. A similar lawsuit was filed against Changing Times magazine several months later.
In June 1980 John Amos appeared before the Senate Subcommittee on Antitrust and Monopoly. A Senate aide described the scene to Barron's (July 28, 1980): 'Amos sat with an attorney on each side of him and four corporate vice-presidents behind. There were public relations people handing out press kits by the door. They brought their own easels to display a bunch of charts. The hearing room was packed with sales agents and satisfied policyholders from every state. There were four senators there--Hatch, Laxalt, Leahy, and Thurmond&mdashø introduce their satisfied constituents. There was applause and cheers from the audience at every statement Amos made, and groans every time [Senator] Metzenbaum spoke.'
The Metzenbaum committee's report, a study from the Federal Trade Commission, another from the Massachusetts Department of Insurance, and several independent reports all suggested that cancer insurance was not a good buy because it covered only about a third of the actual costs of the disease, left a policyholder uncovered if struck by any other disease, and had a high premium relative to benefits.
AFLAC pointed out that in spite of all the controversy millions of informed customers wanted the coverage and continued to buy it. On the subject of fear being used to make sales, John Amos commented, 'All insurance is sold on fear.' By the time the controversy began to die down in 1982, Missouri, New York, New Jersey, and Connecticut had all placed restrictions on the sale of dread-disease policies.
Statistics:
Public Company
Incorporated: 1973
Employees: 4,927
Total Assets: $37.04 billion (1999)
Stock Exchanges: New York Pacific Tokyo
Ticker Symbol: AFL
NAIC: 524113 Direct Life Insurance Carriers (pt); 524114 Direct Health and Medical Insurance Carriers (pt)
Key Dates:
1955: American Family Life Assurance Company (AFLAC) is formed.
1958: AFLAC introduces cancer insurance policy.
1973: American Family Corporation is formed.
1974: AFLAC earns license to sell insurance in Japan.
1978: AFLAC acquires WYEA-TV in Columbus, Georgia.
1985: AFLAC introduces universal life insurance policy.
1990: Super Cancer policy is launched in Japan.
1992: American Family Corporation is renamed AFLAC, Inc.; John Amos dies of cancer.
1997: AFLAC completes divestment of television broadcasting unit.
2000: AFLAC enters strategic partnership with Dai-Ichi Mutual Life Insurance Co.
Address:
1932 Wynnton Road
Columbus, Georgia 31999
U.S.A.
Aflac currently is the number one Supplemental Health provider in the U.S., followed closely by Allstate Workplace Division.
Aflac has a field force of over 70,000 agents in the U.S.
In 2009, Aflac acquired Continental American Insurance Company to expand its coverage beyond voluntary benefits alone.
Aflac Incorporated (Aflac), incorporated in 1973, is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services. Its principal business is supplemental health and life insurance, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Aflac’s business consists of two segments: Aflac Japan and Aflac U.S. 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 loss-of-income products (life and short-term disability plans) and products designed to protect individuals from depletion of assets (hospital indemnity, fixed-benefit dental, vision care, accident, cancer, critical illness/critical care, and hospital intensive care 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. Its WAYS product, allows policyholders to convert a portion of their life insurance to medical, nursing care, or fixed annuity benefits at a predetermined age. Aflac Japan’s stand-alone medical product, EVER, offers a basic level of hospitalization coverage with a premium. In June 2010, the Company introduced a revision to Gentle EVER, its non-standard medical product. The cancer insurance plans the Company offers in Japan provide a lump-sum benefit upon initial diagnosis of internal cancer and a fixed daily benefit for hospitalization and outpatient services related to cancer, as well as surgical, convalescent and terminal care benefits. Its Cancer Forte product offers additional benefits, including payment of outpatient benefits for 60 days, payment of an annuity from the second year through the fifth year after initial diagnosis of cancer, and Premier Support, where Aflac arranges for a third-party to provide policyholders with counseling and doctor referral services upon their cancer diagnosis. In June 2010, the Company introduced a product called Corsage, which is a female-specific rider to its cancer insurance product. Corsage provides surgery benefits that address the high cost of treating female-specific cancers. The Company also offers traditional fixed-income annuities and care policies.
Insurance Products - U.S.
Aflac designs its U.S. insurance products to provide supplemental coverage for people who already have major medical or primary insurance coverage. Its U.S. policies are individually underwritten and marketed through independent agents. Its individually issued policies are portable and pay regardless of other insurance. Benefits are paid in cash directly to policyholders. Its individually issued health insurance plans are guaranteed-renewable for the lifetime of the policyholder (to age 70 for short-term disability policies). Its group insurance policies are underwritten on a group basis and often have some element of guaranteed issue. This coverage is generally not portable, which means the insurance coverage may terminate upon separation from employment or affiliation with the entity holding the group contract.
Aflac U.S. offers short-term disability benefits on both an individual and group basis. Short-term disability policies provide disability benefits with a variety of elimination and benefit period options. The longest, such benefit period offered is two years. Aflac U.S. offers term and whole-life coverage sold through payroll deduction at the worksite on both an individual and group basis and various term and whole-life individual policies on a direct basis. Aflac U.S. offers hospital indemnity coverage on both an individual and group basis. Its hospital indemnity products provide fixed daily benefits for hospitalization due to accident or sickness. Indemnity benefits for inpatient and outpatient surgeries, as well as various other diagnostic expenses, are also available. Its sickness indemnity plan provides a fixed daily benefit for hospitalization due to sickness and fixed amounts for physician services for accident or sickness. This plan is offered on an individually underwritten basis.
Aflac U.S. offers fixed-benefit dental coverage on both an individual and group basis. These policies provide various levels of benefits for dental procedures, including checkups and cleanings. Plan features include fixed benefits without deductibles, network restrictions, or annual rate reviews. Aflac U.S. also offers Vision NowSM, an individually issued policy, which provides benefits for serious eye health conditions and loss of sight. Vision Now includes coverage for corrective eye materials and exam benefits. Aflac U.S. offers accident coverage on both an individual and group basis. These policies are designed to protect against losses resulting from accidents. The accident portion of the policy includes lump-sum benefits for accidental death, dismemberment and specific injuries, as well as fixed benefits for hospital confinement. In addition, other benefits, such as short-term disability are available as riders.
Aflac U.S. offers cancer coverage on an individually underwritten basis. Its U.S. cancer plans are designed to provide insurance benefits for medical and nonmedical costs that are not covered by major medical insurance. Benefits include a first-occurrence benefit that pays an initial amount when internal cancer is first diagnosed; a fixed amount for each day an insured is hospitalized for cancer treatment; fixed amounts for radiation, chemotherapy and surgery, and a wellness benefit applicable toward certain diagnostic tests. Its Maximum Difference individually issued cancer plan incorporates coverage for medical advances in cancer prevention, diagnosis and treatment. Maximum Difference allows customization of coverage to fit varying needs and budgets.
Aflac U.S. offers critical illness/critical care policies on both an individual and group basis. Aflac U.S. offers critical illness plans, which pay lump-sum benefits for critical illnesses such as heart attack, stroke, or even cancer, on both a group and individual basis. Aflac U.S. also offers a critical care policy that pays a combination of lump-sum benefits and ongoing treatment benefits for critical illnesses (except cancer). Aflac U.S. also offers individually issued hospital intensive care plans, which pay benefits for intensive care unit treatment in a hospital.
OVERALL
Beta: 1.74
Market Cap (Mil.): $26,802.07
Shares Outstanding (Mil.): 470.21
Annual Dividend: 1.20
Yield (%): 2.11
FINANCIALS
AFL Industry Sector
P/E (TTM): 12.82 11.71 16.09
EPS (TTM): 33.81 -- --
ROI: -- 0.01 4.58
ROE: 21.02 3.28 9.11
Name Age Since Current Position
Amos, Daniel 59 2001 Chairman of the Board and Chief Executive Officer of the Company and Aflac
Cloninger, Kriss 63 2001 President, Chief Financial Officer, Treasurer, Director; EVP of Aflac
Amos, Paul 35 2007 President of Aflac, Chief Operating Officer - U.S. Operations of Aflac, Director
Lake, Charles 49 2008 Chairman of Aflac Japan
Tonoike, Tohru 60 2007 President and Chief Operating Officer of Aflac Japan
Loudermilk, Joey 57 2000 Executive Vice President, General Counsel, Corporate Secretary of the Company and Aflac
Durant, Martin 62 2008 Executive Vice President, Deputy Chief Financial Officer
Janke, Kenneth 52 2010 Executive Vice President, Deputy Chief Financial Officer
Tillman, Audrey 46 2008 Executive Vice President - Corporate Services
Howard, June 44 2011 Senior Vice President - Financial Services, CAO of the Company and the Aflac; Treasurer of Aflac
Agypt, Ronald 45 2011 Senior Vice President - Aflac Broker Sales
Wilkey, Robin 52 2010 Senior Vice President - Investor Relations
Rogers, Ralph 62 2011 Senior Vice President - Financial Services of the Company and Aflac
Yamauchi, Hiroshi 59 2011 First Senior Vice President - Planning, Government Affairs & Research, Customer Services Promotion, Legal, Risk Management, and Compliance Promotion of Aflac Japan
Isonaka, Jun 53 2010 Senior Vice President, Chief Administrative Officer of Aflac Japan
Arai, Yuji 48 2005 Senior Vice President, Principal Financial Officer of Aflac Japan
Blanck, Susan 44 2011 Executive Vice President - Corporate Actuary of Aflac
Jeffery, W. Jeremy 60 2007 Senior Vice President, Chief Investment Officer of Aflac
White, Teresa 44 2008 Executive Vice President, Chief Administrative Officer of Aflac
Ariyoshi, Koji 57 2010 First Senior Vice President, Director - Marketing and Sales, Aflac Japan
Giddens, Thomas 56 2010 Senior Vice President, Director - Sales
Purdom, E. Stephen 63 1987 Director
Amos, John 58 1983 Director
Harris, Joe 75 1991 Director
Armacost, Michael 73 1994 Independent Director
Hudson, Elizabeth 61 1990 Independent Director
During the 1970s a number of companies, seeing AFLAC's success, introduced cancer policies of their own. By the end of the decade there were about 300 insurers selling cancer coverage. AFLAC, however, handily controlled the market, having sold about 60 percent of all cancer policies. The company, in fact, claimed to be the world's fastest-growing insurance company. Between 1972 and 1977 annual premium income rose 294 percent to $205 million, while earnings jumped to $25 million--a 181 percent increase.
Much of AFLAC's success in the mid-1970s was the result of its entry into the rapidly expanding Japanese market. When Chairman John Amos visited Japan in 1970, he was convinced that it would be an excellent market for his cancer care policies. The Japanese industry, however, was well entrenched, and foreign companies found it virtually impossible to get licensing. Amos was not deterred and quickly formulated a plan to gain acceptance for his company's product in Japan.
When AFLAC was licensed by Japan's Ministry of Finance to sell insurance in 1974, it was only the second U.S. company to be allowed to do so in more than two decades. Part of AFLAC's success came from the fact that it offered a product that was not yet available from Japanese insurers, at a time when cancer awareness was expanding. Another factor was AFLAC's decision to employ retired workers as its agents, a move that impressed both former coworkers--potential policyholders--and the Ministry of Finance. In addition, Amos's choice of company officers was truly inspired: it included many luminaries of the Japanese insurance industry. Furthermore, these executives enlisted the support of the medical community even before AFLAC applied for its license.
Once AFLAC received permission to sell its product, it further moved to insure its own success by signing up large Japanese industrial and financial groups as agents, a variation on the cluster-selling theme. AFLAC paid commissions to the companies, which made the presentations themselves. Huge conglomerates including the Mitsui and Mitsubishi groups and the Dai-Ichi Kangyo and Sanwa banks tapped thousands of their own employees before having to search for customers. The plan was an unprecedented success. Japanese consumers had the money to buy coverage, meticulously paid their premiums, and had a very high rate of policy renewal. By 1987 the Japanese market accounted for two-thirds of AFLAC's total revenues and 70 percent of after-tax earnings.
Just as AFLAC's cancer insurance began taking off in Japan, the cancer insurance industry came under close scrutiny from a number of consumer groups in the United States. Two congressional committees investigated the product. The major complaints were that cancer insurance had limited value because it did not cover the entire cost of the disease and that the companies selling it, including AFLAC, used hard-sell tactics that exploited fear of cancer, particularly in elderly people.
John Amos was characteristically aggressive in defense of his company and its product. In 1979 AFLAC sued American Broadcasting Company (ABC) for alleged damages that resulted from a segment on insurance fraud on the network's 'World News Tonight' program. A similar lawsuit was filed against Changing Times magazine several months later.
In June 1980 John Amos appeared before the Senate Subcommittee on Antitrust and Monopoly. A Senate aide described the scene to Barron's (July 28, 1980): 'Amos sat with an attorney on each side of him and four corporate vice-presidents behind. There were public relations people handing out press kits by the door. They brought their own easels to display a bunch of charts. The hearing room was packed with sales agents and satisfied policyholders from every state. There were four senators there--Hatch, Laxalt, Leahy, and Thurmond&mdashø introduce their satisfied constituents. There was applause and cheers from the audience at every statement Amos made, and groans every time [Senator] Metzenbaum spoke.'
The Metzenbaum committee's report, a study from the Federal Trade Commission, another from the Massachusetts Department of Insurance, and several independent reports all suggested that cancer insurance was not a good buy because it covered only about a third of the actual costs of the disease, left a policyholder uncovered if struck by any other disease, and had a high premium relative to benefits.
AFLAC pointed out that in spite of all the controversy millions of informed customers wanted the coverage and continued to buy it. On the subject of fear being used to make sales, John Amos commented, 'All insurance is sold on fear.' By the time the controversy began to die down in 1982, Missouri, New York, New Jersey, and Connecticut had all placed restrictions on the sale of dread-disease policies.
Statistics:
Public Company
Incorporated: 1973
Employees: 4,927
Total Assets: $37.04 billion (1999)
Stock Exchanges: New York Pacific Tokyo
Ticker Symbol: AFL
NAIC: 524113 Direct Life Insurance Carriers (pt); 524114 Direct Health and Medical Insurance Carriers (pt)
Key Dates:
1955: American Family Life Assurance Company (AFLAC) is formed.
1958: AFLAC introduces cancer insurance policy.
1973: American Family Corporation is formed.
1974: AFLAC earns license to sell insurance in Japan.
1978: AFLAC acquires WYEA-TV in Columbus, Georgia.
1985: AFLAC introduces universal life insurance policy.
1990: Super Cancer policy is launched in Japan.
1992: American Family Corporation is renamed AFLAC, Inc.; John Amos dies of cancer.
1997: AFLAC completes divestment of television broadcasting unit.
2000: AFLAC enters strategic partnership with Dai-Ichi Mutual Life Insurance Co.
Address:
1932 Wynnton Road
Columbus, Georgia 31999
U.S.A.
Last edited: