Distribution and Consumer Value Issues

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Allan OBryant Aflac International
Distribution and Consumer Value Issues
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Road Map

• Aflac Japan Today
• Corporate Agency System
• Changing Customer Needs
• Evolving Distribution Systems
• Lessons Learned

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No. 1 Life Insurer in Japan
Policies in Force
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Comparison of Premium Income Growth
(FSA Basis, 3/00100)
Aflac
Industry
Source Japan Institute of Life Insurance
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Corporate Agency System
Parent Company
Aflac
Corporate Agency
Employees of Parent Affiliated Companies
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Shrinking Worksite Market

• Decrease in number of employees due to corporate
  restructuring
• Shift in employee preference in buying insurance
  to outside the worksite
• Need for privacy when discussing insurance needs

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Product Broadening
New Business in Annualized Premium
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Sales by Agency Type
Tie-Up
Individual
Corporate
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Surrender and Lapse Rates
Life Industry
Aflac
Source Japan Institute of Life Insurance (FSA
Basis)
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Paid Claims
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Days Required to Pay Claims
Less than 2 days on average
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Average Premium per Policy

• Average
• Premium
• Aflac \52,591
• Top 9 life insures \154,635
• Life Industry \135,972

Source Life Insurance Association of Japan
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Evolving Distribution Systems

• Internet
• Call Center Telemarketing
• Insurance Service Shops
• Automated Business Writing (e-App)

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Customer Voice

• Customer comments are registered into an
  internally shared DB.
• Customer comments are reviewed by Customer Voice
  Committee and corrective actions are taken.
• Critical issues are shared with appropriate
  management.

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Lessons Learned

• Support the existing distribution channels when
  introducing a new approach.
• Must meet customer needs.

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