Aflac is an insurance business holding which is considered a management company. The agency looks into various operations by providing health-related insurance policies. The company operates through its two main segments – Japan and the US. In Japan, the company has concentrated on death benefits and more so issuance of surrender values. The products contain features that enable policyholders to link the life assurance to medical or nursing care. Annual and fixed benefits are determined by age of the insured. The company also sells voluntary supplemental products that include general indemnity programs, care plans and ordinary life insurance plans. The US segment majors on voluntary supplemental products and especially those developed protect against loss of income (Forbes , 2018).
History
Aflac was initiated six decades ago by John Amos the founder in collaboration with his brothers Bill and Paul. According to the trio, there was a need to create financial protection whenever a risk was incurred. The business kicked off in a small room in Columbus, Georgia, with a team of 16 employees and about 60 agents. Upon completing the first year, the agencyhad gathered about 6400 policy holders. After the first year the business had accumulated assets worth $188,000. Through the company, American Family life initiated a cancer policy after a careful research to cover healthcare needs of the community. The business soon became a life assurance company through extensive advertising campaigns that allowed the company to build a reputation. The agency now operates in its several segments in Aflac Japan and US (AFLAC, 2018).
Industry description and outlook for the next 10 years
Technology has necessitated the need for improvement in customer satisfaction in all sectors of the economy. Competition has led to changes in the market trends given the impact brought about by new entrants. Insurers have been left with no option but to strive to remain at the top in terms of sales and market relevance. The industry dynamic trends have come up with threats and opportunities that most agencies pay attention to. Political issues such as regulations have been changing over the years hence insurance agencies have had to adopt them to stay in business. High customer expectations and innovations have changed the way business in conducted. For instance, online selling has become paramount in the insurance sector. The race to keep up with technology weighs down heavily on new comers since it demands some financing which is hard to come by. Despite these changes, some attributes have remained constant such as growing top-line sales. The struggle for interest rates has also been a major challenge. This leaves the insurance companies with no option but to adapt, prepare and anticipate (Forbes , 2018).
Aflac Mission, Vision " Values
Mission Statement
The company’s mission statement was formulated by the founder together with his brothers six decades ago. The agency “maintains the spirit of commitment to putting policy holders first” (AFLAC, 2018).
Vision Statement
The vision statement was established in 1995 after, the company donated money to a child with cancer. Through the realization of the need for healthcare plans, AFLAC embarked on introduction of cancer insurance cover for their customers. The company vowed since then to support children with cancer nationally by investing in treatment, programs and pediatric cancer research (AFLAC, 2018).
Values
The company takes pride in values such as teamwork, fairness honesty, respect, Integrity and responsibility.
Company Leadership/Leadership Style
Dan Amos serves as the Chief Executive Officer of AFLAC. Amos has grown in the company over the years beginning as a sales agent and becoming best in the agency. The agency made him the president in 1983 and CEO in 1990. Through his prowess in managerial skills, Amos slowly rose the ranks gradually. Amos was selected based on his performance and dedication to the company goals and objectives. Having started as an agent and progressed to his current status, it is clear that both transformational and servant leadership styles are used. While as an agent, he served first hence he valued group decision making and power-sharing. Through this approach the company has managed to have several presidents leading different sectors of the business. As a transformational leader, Amos leads by example through effective communication and improve the environment for work prosperity. Amos uses positive motivation to boost his employee morale such as rewards and remuneration. Teamwork is the most important attribute of a transformational leader (Forbes , 2018).
Company Product/Services
Aflac has majored in Health and Life Insurance covers only. Under health the company provides products such as;-
Accident Insurance
This policy offers peace of mind when a patient is at different stages of recovery. The policy also protects in case of further injuries during patient care and recovery.
Cancer Insurance
Cancer policy is a form of financial security in cases where a positive diagnosis of cancer comes up.
Critical Illness Insurance
This policy helps in covering costs in case of a serious health problem.
Life Insurance
This is a form of security for loved once in case of death of an insurer.
Hospital Insurance
The policy aims at providing a variety of affordable benefits for in-patients and out-patients hospital services.
Short-Term Disability Insurance
This is cover over a short-term illness hence is a security in case of low income. The benefits include cover up for the money used during the period of illness.
Vision Insurance
This is a financial security for the eyes.
Company Target Market
Aflac is strategic in selecting its target consumers especially since most health issues are prevalent at old age. The customer base mainly ranges from 35 to 54 years for most of their policies. The company decided to create a wide range of products for the sake of diversifying its sales rather than concentrating on its core products such as cancer insurance. The sale of the supplemental insurance was part of the strategy to reach more customers. Customers with families also became the target market for the agency. Through the marketing campaigns the company worked tirelessly to build a reputation for itself. Campaigns also increase awareness of the company’s products even though Aflac brand name is not such a easy one.
Company National and International locations
Aflac operates in two major countries – Japan and the US. The company’s major headquarters is in Columbus with various branches such as Aflac support Centre, Paul S. Amos Building, Information Technology centre, CSC building Aflac Federal Credit Union. Omaha location with the Aflac Customer Service Centre, Aflac group at Williams Street, Laurel street and tailor street. Aflac New York and the Aflac Global investments both situated in New York.
References
AFLAC. (2018). AFLAC. Retrieved Oct 24th , 2018, from https://www.aflac.com/business/products/life-insurance.aspx
Forbes . (2018). AFLAC. Retrieved Oct 24th , 2018, from https://www.forbes.com/companies/aflac/#42429cda6305
Appendix 1
Aflac Organization Structure
