Aflac Incorporated is the largest provider of supplemental insurance in the United States,
founded in 1955 and based in Columbus, Georgia.
In the U.S., 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".
In 2009, Aflac acquired Continental American Insurance Company for $100 million; this enabled
Aflac to sell supplemental insurance on both the individual and group platform . As of
June 30, 2012, Aflac was represented by approximately 19,300 sales agencies in Japan, and 76,900
licensed sales associates in the U.S.
History The company was founded by brothers John,
Paul, and William Amos in Columbus, Georgia, in 1955, as American Family Life Insurance
Company of Columbus.
In 1964, the company name was changed to American Family Life Assurance Company of Columbus.
The company, in 1990, adopted the Aflac initials, although the official name of the underwriting
subsidiary remains American Family Life Assurance Company of Columbus.
The company signed 6,426 policyholders in its first year.
Aflac pioneered cancer insurance in 1958.
Beginning in 1964, the company decided to focus sales on worksite settings, eventually
through policies sponsored by employers and funded through payroll deductions.
By 2003, more than 98% of Aflac policies in the United States were issued on a payroll
deduction basis, making the company a leader in that approach to policy distribution.
In 1973, Aflac established a holding company, the American Family Corporation.
Business Aflac operates in the United States and Japan,
and has its worldwide headquarters and corporate offices in an eighteen story tower just east
of Downtown Columbus, Georgia in an area known as MidTown.
The Aflac tower is the tallest building in the city.
As of September 30, 2012, the corporation's total assets were more than $124 billion,
and the company insured more than 50 million people worldwide.
Aflac is the largest provider of guaranteed-renewable insurance in the United States and the largest
insurance company overall in Japan, when measured by individual insurance policies in force.
Aflac launched a campaign in 2001 to promote their first accident policy in Japan, which
The Wall Street Journal rated as one of the "ten most effective campaigns of 2000."
The company now offers several types of insurance policies in the United States, including the
following: Accident
Cancer/Specified Disease Dental
Hospital Confinement Indemnity Hospital Confinement Sickness Indemnity
Hospital Intensive Care Life
Lump Sum Cancer Lump Sum Cancer Critical Illness
Specified Health Event Short Term Disability
Vision Aflac also offers un-reimbursed medical, dependent
day-care, and transportation flexible spending accounts.
The company also offers human resources services for HIPAA and COBRA administration.
From 1979 to 1997, the company owned several television stations, most of them in small
and medium markets.
It sold the broadcasting division to what became Raycom Media in 1997.
Critics of cancer policies Consumer groups and some government officials
say that cancer insurance returns fewer premium dollars to policyholders than standard insurance.
A U.S. General Accounting Office study found that the policies paid back as little as 35%
of premiums.
In comparison, New York State requires most major-medical policies to pay back 82% and
group policies to pay back 75%.
New York State does not allow stand-alone cancer policies.
In 1997, AFLAC spent $175,000 on lobbyists and campaign contributions to change the law.
New York State lifted its ban in 1998, for purchasers who already have basic coverage.
Consumer Reports recommended that policyholders use the money instead to buy lower-deductible
insurance.
The Aflac Duck Since December 1999, the company's identity
and brand has become more widely recognized in the United States as the result of TV commercials
featuring the Aflac Duck, who frustratedly quacks the company's name to unsuspecting
prospective policyholders.
The duck concept and all of the commercials to date have been created by Kaplan Thaler
Group, an advertising agency based in New York City.
Metzer Farms, a Gonzales, California goose, duck, and gamebird hatchery, supplied them
with the initial ducklings that each grew into the famous duck.
Struggling to come up with a concept to make the big but relatively obscure insurance company's
name memorable, one of the agency's art directors stumbled upon the duck idea while walking
around Central Park at lunchtime uttering, "Aflac, Aflac."
He soon realized how much the company's name sounded like a duck's quack.
The Aflac Duck character has now starred in more than 30 commercials.
In many of these commercials, character actor Earl Billings also appears.
The Aflac Duck is enshrined on Madison Avenue's Walk of Fame as one of America's Favorite
Advertising Icons.
In April 2009, Aflac introduced a new marketing campaign called "Get the Aflacts", designed
to educate consumers about the specific benefits of the insurance products the company sells.
The Aflacts campaign gave the Aflac Duck "a more prominent role", designed to "help potential
customers learn the Aflacts, er, facts about policies and other products", according to
The New York Times.
Celebrities have starred in the Aflac ads, including Chevy Chase; Yogi Berra; Yao Ming;
Donald Trump's wife, Melania Trump; NASCAR Sprint Cup Series driver Carl Edwards; the
United States Olympic synchronized swimming team; and Wayne Newton playing at Stardust
Hotel and Casino for the 2003 commercial.
The duck even appeared with Bugs Bunny, Daffy Duck, Wile E. Coyote and The Road Runner,
and Rudolph the Red-Nosed Reindeer.
In 2005, the company logo was changed to incorporate the duck.
The first commercial using the new logo featured Gilbert Gottfried at a pet store because the
duck kept saying, "Aflac!" and he had to trade in the duck for a parrot, saying, "If you're
hurt and can't work."
The duck was voiced by comedian Gilbert Gottfried.
After 11 years as the voice of the Aflac duck, Gottfried was dismissed on March 14, 2011
due to postings on Gottfried's Twitter account referencing the Tōhoku earthquake and tsunami.
The company's chief marketing officer stated that "Gilbert's recent comments about the
crisis in Japan were lacking in humor, and certainly do not represent the thoughts and
feelings of anyone at Aflac."
On March 23, 2011, Aflac announced that the company was taking applications for the new
voice of the Aflac Duck through QuackAflac.com until April 1.
Commercials requesting the submissions, first aired in 2006 but updated, resemble a silent
movie.
On April 26, 2011, it was announced that Daniel McKeague, a television advertising sales manager
from Hugo, Minnesota, would be the new voice of the Aflac duck.
The first Aflac commercial featuring the duck's new voice aired on May 1, 2011.
Corporate philanthropy and social responsibility The company states that through a partnership
with Children's Healthcare of Atlanta, Aflac has contributed more than $79 million to childhood
cancer research and treatment.
Aflac employees are formally involved in an array of charitable organizations such as
Habitat for Humanity International, the Easter Seals, and the United Way.
Aflac's stated objectives include the decrease of its environmental impact, for which the
company is into a partnership with the Clean Air Campaign to encourage employees to engage
with greater frequency in alternate commuting methods.
Award programs Aflac National High School Baseball Player
of the Year.
The Jackie Robinson Award is given to the high-school player who is entering his senior
year and who best displays character, leadership, and the values of being a student athlete
in academics and community affairs.
The award is presented at an annual All-American Awards banquet, which was first held in 2003.
The banquet follows the annual All-American Baseball Classic, an East-West all-star game
featuring the 38 best players from around the nation who are entering their senior year
of high school.
First held in 2003, the game is played at PETCO Park, San Diego, California.
Proceeds from the game and banquet are donated to Rady Children's Hospital in San Diego and
its fight against childhood cancer.
In 2011, the name of the all-star game was changed to the Perfect Game All-American Classic.
Awards and honors Aflac has been the recipient of several awards:
Aflac was on Fortune's 100 Best Companies to Work For list for 15 consecutive years.
Aflac has appeared on Fortune's America's Most Admired Companies list for 12 years.
Aflac has been recognized by Ethisphere magazine as a World's Most Ethical Companies for seven
consecutive years.
Aflac has been named to the Dow Jones Sustainability Index North America for two consecutive years.
In August/September 2012, Latina Style magazine placed Aflac in the top five of the 50 Best
Companies for Latinas to work for in the United States.
Aflac has been on this annual list for 13 of its 15 years.
In July 2012, Black Enterprise magazine included Aflac in its list of the Top 40 Best Companies
for Diversity for the ninth consecutive year.
See also List of United States insurance companies
References
External links Corporate website
Aflac SEC Filings