What is AFLAC strengths and current weaknesses in the market as it relates to its service delivery
Answered Essay: What is AFLAC strengths and current weaknesses in the market as it relates to its service delivery
Expert Answer
AFLAC Incorporated is the largest provider of supplemental insurance in the United States, founded in 1955 and based in MidTown Columbus, Georgia. In the United States, Aflac underwrites a wide range of insurance policies, but is perhaps best known for its payroll deduction insurance coverage, which pay cash benefits when a policyholder has a covered accident or illness. In Japan, the company is the second largest insurer overall and the largest life insurer, and is also well known for its supplemental medical policies. Aflac currently is the number one Supplemental Health provider in the U.S. followed closely by Allstate Workplace Division.
The strengths for AFLAC are listed below:
1. Focus on niche helping defend global market leadership in supplemental health insurance
2. Long standing relationships with banks continue contributing to recurring sales
3. Strong balance sheet providing financial strength
4. Unique products with high customer loyalty
The weaknesses for AFLAC are listed below:
1. Increasing concentration in Japan increases business risk
2. Losses on perpetual debentures likely to continue
3.Brand equity not strong enough compared to competitors
