AFL » Topics » Competition - U.S.

This excerpt taken from the AFL 10-K filed Feb 26, 2010.

Competition – U.S.

We compete against several insurers on a national basis plus other insurers regionally. We believe our policies and premium rates, as well as the commissions paid to our sales associates, are competitive

 

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with those offered by other companies providing similar types of insurance. However, we believe our U.S. business is distinct from our competitors because of our product focus, distribution system, and brand awareness. For many of the other companies that sell supplemental insurance, it represents a secondary business. For us, it is our primary business. We also believe that our growing distribution system of independent sales associates expands our business opportunities, while our advertising campaigns have increased our name awareness and understanding by consumers and businesses of the value our products provide.

Private insurers and voluntary and cooperative plans, such as Blue Cross and Blue Shield, provide major medical insurance for hospitalization and medical expenses. Much of this insurance is sold on a group basis. The federal and state governments also pay substantial costs of medical treatment through various programs. Such major medical insurance generally covers a substantial amount of the medical expenses incurred by an insured as a result of accident and disability, cancer or other major illnesses. Aflac’s policies are designed to provide coverage that supplements major medical insurance and may also be used to defray nonmedical expenses. Thus, we do not compete directly with major medical insurers. However, the scope of major medical coverage offered by other insurers does represent a potential limitation on the market for our products. Accordingly, expansion of coverage by other insurers or governmental programs could adversely affect our business opportunities. Conversely, any reduction of coverage, or increased deductibles and copayments, by other insurers or governmental programs could favorably affect our business opportunities.

These excerpts taken from the AFL 10-K filed Feb 29, 2008.
Competition - U.S.
 
Approximately 1,000 life insurance companies are licensed in the United States. We compete against several insurers on a national basis plus other insurers regionally. We believe our policies and premium rates, as well as the commissions paid to our sales associates, are competitive with those offered by other companies providing similar types of insurance. However, we believe our U.S. business is distinct from our competitors because of our product focus, distribution system, and brand awareness. For many of the other companies that sell supplemental insurance, it represents a secondary business. For us, it is our primary business. We also believe that our growing distribution system of independent sales associates expands our business opportunities, while our advertising campaigns have increased our name awareness and consumer understanding of our brand message.
 
Private insurers and voluntary and cooperative plans, such as Blue Cross and Blue Shield, provide insurance for hospitalization and medical expenses. Much of this insurance is sold on a group basis. The federal and state governments also pay substantial costs of medical treatment through various programs. Such major medical insurance generally covers a substantial amount of the medical expenses incurred by an insured as a result of accident and disability, cancer or other major illnesses. Aflac’s policies are designed to provide coverage that supplements major medical insurance and may also be used to defray nonmedical expenses. Thus, we do not compete directly with major medical insurers. However, the scope of major medical coverage offered by other insurers does represent a potential limitation on the market for our products. Accordingly, expansion of coverage by other insurers or governmental programs could adversely affect our business opportunities. Conversely, any reduction of coverage, or increased deductibles and copayments, by other insurers or governmental programs could favorably affect our business opportunities.
 
Competition -
U.S.



 



Approximately 1,000 life insurance companies are licensed in the
United States. We compete against several insurers on a national
basis plus other insurers regionally. We believe our policies
and premium rates, as well as the commissions paid to our sales
associates, are competitive with those offered by other
companies providing similar types of insurance. However, we
believe our U.S. business is distinct from our competitors
because of our product focus, distribution system, and brand
awareness. For many of the other companies that sell
supplemental insurance, it represents a secondary business. For
us, it is our primary business. We also believe that our growing
distribution system of independent sales associates expands our
business opportunities, while our advertising campaigns have
increased our name awareness and consumer understanding of our
brand message.


 



Private insurers and voluntary and cooperative plans, such as
Blue Cross and Blue Shield, provide insurance for
hospitalization and medical expenses. Much of this insurance is
sold on a group basis. The federal and state governments also
pay substantial costs of medical treatment through various
programs. Such major medical insurance generally covers a
substantial amount of the medical expenses incurred by an
insured as a result of accident and disability, cancer or other
major illnesses. Aflac’s policies are designed to provide
coverage that supplements major medical insurance and may also
be used to defray nonmedical expenses. Thus, we do not compete
directly with major medical insurers. However, the scope of
major medical coverage offered by other insurers does represent
a potential limitation on the market for our products.
Accordingly, expansion of coverage by other insurers or
governmental programs could adversely affect our business
opportunities. Conversely, any reduction of coverage, or
increased deductibles and copayments, by other insurers or
governmental programs could favorably affect our business
opportunities.


 




This excerpt taken from the AFL 10-K filed Feb 28, 2007.

Competition - U.S.

Approximately 2,000 life insurance companies are licensed in the United States. We compete against several insurers on a national basis plus other insurers regionally. We believe 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 our U.S. business is distinct from our competitors because of our product focus, distribution system, and brand awareness. For many of the other companies that sell supplemental insurance, it represents a secondary business. For us, it is our primary business. We also believe that our growing distribution system of independent sales associates expands our business opportunities, while our advertising campaigns have increased our name awareness and the effectiveness of our branding efforts.

Private insurers and voluntary and cooperative plans, such as Blue Cross and Blue Shield, provide insurance for hospitalization and medical expenses. Much of this insurance is sold on a group basis. The federal and state governments also pay substantial costs of medical treatment through various

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programs. Such major medical insurance generally covers a substantial amount of the medical expenses incurred by an insured as a result of accident and disability, cancer or other major illnesses. Aflac’s policies are designed to provide coverage that supplements major medical insurance and may also be used to defray nonmedical expenses. Thus, we do not compete directly with major medical insurers. However, the scope of major medical coverage offered by other insurers does represent a potential limitation on the market for our products. Accordingly, expansion of coverage by other insurers or governmental programs could adversely affect our business opportunities. Conversely, any reduction of coverage, or increased deductibles and copayments, by other insurers or governmental programs could favorably affect our business opportunities.

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