.
MARIA: WELCOME BACK.
40-YEAR HIGH INFLATION IS ALSO
IMPACTING INSURANCE PEOPLE ARE
NOW LOOKING TO FILL FINANCIAL
GAPS DUE TO MEDICAL COSTS NOT
COVERED BY HEALTH INSURANCE
JOINING US CHAIRMAN CEO AFLAC,
DAN AMOS HERE LARGEST PROVIDER
SUPPLEMENTAL INSURANCE IN THE
UNITED STATES A BIG BUSINESS
IN JAPAN AS WELL.
DAN GREAT TO SEE YOU.
>> THANK YOU FOR HAVING ME.
>> THANKS VERY MUCH FOR BEING
HERE WE HEARD THE PPI WAS A
LITTLE BETTER THAN EXPECTED
YEAR-OVER-YEAR WAS UP 8.7%
TRYING TO UNDERSTAND WHAT FR
IS GOING TO DO AS A RESULT OF
40 YEAR HIGH NATION TELL US
ABOUT IMPACT HIGHER RATES HAVE
HAD ON YOUR BUSINESS.
>> WELL, I THINK FIRST, YOU
HAVE TO SAY THAT INFLATION IS
TERRIBLE FOR THE CONSUMER.
MARIA: RIGHT.
>> IT REALLY CREATES A
PROBLEM.
THERE ARE CHECKS AND BALANCES
WITH US.
WE HAVE AN ENORMOUS CASH FLOW.
SO WHEN YOU HAVE HIGHER
INTEREST RATES, THAT ACTUALLY
ALLOWS HIGHER STRONGER CASH
FLOWS FOR US THROUGH THE
HIGHER INTEREST RATES, SO THAT
IS NOT NELL BAD FOR US THAT IS
ONE OF THE ISSUES THAT WHEN IN
THAT LOW INTEREST RATE
ENVIRONMENT IT WAS REALLY
GIVING PROBLEMS TO INSURANCE
COMPANIES SO THAT IS THE --
THE POSITIVE.
OBVIOUSLY, BAD THING IS, IT
AFFECTS PURSE STRINGS OF THE
AVERAGE CONSUMER, AND HOW THEY
CAN AFFORD THESE HIGHER COSTS
OF HEALTHCARE.
NOW, OUR POLICIES ARE
DIFFERENT, THEY ARE INDEMNITY
IN NATURE MEANING SIMPLY IF WE
ARE GOING TO PAY 500 DOLLARS A
DAY FOR EVERY DAY IN THE
HOSPITAL EVEN THOUGH INFLATION
TOOK PLACE SAY 550 NOW, WE
STILL PAY 500 BUT YOU ARE RATE
STAYS THE SAME WE GO IN WITH
NEW POLICY OFFER HIGHER
BENEFITS SAY TO 550.
YOU CAN APPLY OR NOT BUY.
YOU ARE NOT REQUIRED.
AT TIME OF CLAIM NOT AS HAPPY,
IF YOU GOT 500 WHEN YOU NEEDED
550.
SO THAT POCKET EXPENSES GROW.
WE OFFER THOSE IT IS A
CHALLENGING ENVIRONMENT FOR
THE CONSUMER, IT IS A
CHALLENGING ENVIRONMENT FOR A
LOT OF COMPANIES.
BUT I THINK WE ARE WELL
BALANCED IT TO BE IN THIS
POSITION BUT CERTAINLY WE HOPE
INFLATION WILL GET UNDER
CONTROL QUICKLY.
MARIA: NOT AS BAD AS WHAT WE
SAW DURING THE HEIGHT OF THE
PANDEMIC, BUT TELL ME WHAT YOU
ARE SEEING IN TERMS OF
MACROSTORY YESTERDAY FORMER
PRESIDENT OF KANSAS CITY
FEDERAL RESERVE SAID WE ARE IN
FOR A SEVERE RECESSION THAT IS
WHAT YOU ARE SEEING?
>> WELL -- THERE ARE A LOT OF
PEOPLE SAYING DIFFERENT
THINGS.
CERTAINLY, I WORRY ABOUT THAT
I DON’T KNOW WHAT WILL HAPPEN,
I AM NOT AN ECONOMIST BY TRADE
BUT DO I WORRY THAT RECESSION
IS CERTAINLY A HIGH
PROBABILITY OR POSITIVITY,
YES, I WORRY ABOUT THAT.
BUT RIGHT NOW I THINK, TIME
WILL TELL IN THE NEXT SIX
MONTHS, WE WILL HAVE A MUCH
BETTER VIEW ON WHAT IS GOING
TO TAKE PLACE.
MARIA: WILL YOU TAKE PREMIUMS
HIGHER?
WHAT ARE YOU DOING IN TERMS OF
YOUR OWN INFLATIONARY STORY.
>> WHAT WE WILL DO WE WILL
OFFER A HIGHER BENEFIT POLICY,
THAT YOU CAN PAY A HIGHER
PREMIUM FOR.
BUT YOU DON’T HAVE TO BUY IT
IS YOUR OPTION.
WHEREAS WITH OTHERS, AS YOU
KNOW, IT IS ACTUAL EXPENSES IF
EXPENSE GOING UP YOU ARE
GETTING A HIGHER BENEFIT BUT
PAYING HIRE PREMIUM SO PEOPLE
COULD DROP POLICY.
>> TELL US ABOUT DUCK HOW IT
IS HELPING PEOPLE SICK I LOVE
THIS STORY YOU CAME ON LAST
TIME WALKED US THROUGH YOU
GIVE THESE AWAY.
>> WE DO GIVE THESE AWAY FIRST
OF ALL WE ARE BIG
PHILANTHROPIC EFFORT AT
CHILDREN’S HEALTHCARE AT
ATLANTA BLOOD DISORDERS WE
HAVE BEEN SPONSOR FOR 27
YEARS.
AND OUR FIELD FORCE SALES
PEOPLE COMPANY HAVE GIVEN OVER
161 MILLION DOLLARS TO HELP
KIDS WITH CANCER, WE HAVE
OUTSTANDING RESEARCH, AND WHAT
HAPPENED IS SOMEONE CAME UP
WITH THIS ANAMITRONIC DUCK A
COMPANION TO CHILDREN WHEN
GOING THROUGH CANCER.
AND WE GIVE THESE TO EVERY
CHILD IN AMERICA.
MARIA: SO GREAT.
>> IN JAPAN WE HAVE GIVEN AWAY
17,000 OF THESE, NOT JUST A
LITTLE STUFFED DUCK WE SPEND
ALMOST 200 DOLLARS APIECE ON
THEM IT CANNON CONSUMER
ELECTRONICS SHOW BEST IN SHOW
A FEW YEARS AGO WE CONTINUE TO
GIVE THOSE.
NOW, THE SICKLE CELL UNDER
BLOOD DISORDERS IS LARGEST IN
THE WORLD, OURS IS AT AFLAC
CANCER CENTER GIVE IT TO