Aflac State Government Relations Overview
October 25, 2013
Aflac Organizational Structure
Aflac, Inc
Columbus, GA
Aflac Group
(Continental American)
Columbia, SC
Aflac Nebraska
HQ – Columbus, GA
Aflac New York
Albany, NY
Aflac: Company Overview
 Founded in 1955 in Columbus, Georgia
 Fortune 125 company; $29 billion market capitalization (NYSE: AFL); $118+ billion in assets (2012); $25.4 billion
in annual revenues (2012)
 Aflac covers over 50 million policyholders worldwide (U.S. and Japan)
 #1 insurance company in terms of individual policies in force in Japan, insuring approximately one in four
Japanese households
 Number one provider of guaranteed-renewable insurance in the U.S. according to National Underwriter.
Supplemental insurance market leader in the U.S. with about 25% market share.
 Sales in all 50 U.S. states, Puerto Rico and the Virgin Islands, represented by 76,000 agents. U.S. operations in
Georgia, Nebraska, South Carolina and New York.
 96% of Aflac U.S. sales are through the worksite. In the U.S., 460,000+ businesses of all sizes and industries offer
Aflac on a voluntary basis to their employees.
 Aflac, its employees and its independent sales force have contributed over $79 million to the Aflac Cancer and
Blood Disorders Center of Children’s Healthcare of Atlanta
3
Samples of Aflac Recognitions and Awards:
Training
America’s Most Admired
Companies
Platinum 400 List of Best
Big Companies
Best Place to Launch a Career
Number 58 in U.S.
40 Best Companies for
Diversity
Top 100 Organizations with
Outstanding Workforce
Development Programs
World’s Most Ethical
Companies
100 Companies Providing the
Most Opportunities for
Hispanics
Most Respected Company in US
Insurance Industry
100 Best Companies for
Working Mothers
State Government Relations: Mission and Objectives
Department Mission: To influence the decisions and actions of State Government in order to protect and advance
Aflac’s corporate interest.
Department Objectives
Maintain relations with
State legislatures and
Insurance
Commissioners
Monitor State
legislation and
regulations and act on
identified threats and
opportunities for Aflac
Identify and manage
State issues
Identify, coordinate
and monitor emerging
and existing State
legislative and industry
issues
State Government Relations Workstreams: Five Focus Areas
Examples:
• Mandated benefits
• Minimum loss ratio requirements
• Taxes/Fees
• Product approvals
• Support Aflac Group and New
York company government
relations
State-level
Legislative and
Regulatory
Activity and
Monitoring
Examples:
• Healthcare Reform
• Supplemental products on
Exchanges
• Federal Insurance Office
Coalition
Building to
Resolve and
Monitor Issues
Federal
Workstreams
with State
Implications
Examples:
• Public Sector Associations
• Industry Associations
• Like-minded companies
• State Regulators and
Legislators
• Focus on domicile states
International
and Japan
Financial and
Investments
Examples:
• IAIS
• ComFrame
• Supervisory College
Examples:
• Derivatives
• Investments
• Principal-Based Reserves
Government Relations Legislative/Regulatory Monitoring Process
Assessment
• StateNet provides overnight
feed of potential adverse
legislation and regulations using
key words algorithm
• YTD Per Week: @1,300 pieces
of legislation and @120 new
regulations flagged; all 50
States, DC, Puerto Rico
• Myriad of issues including
product mandates, health
reform, agent licensing,
Medicaid, taxation, exchanges,
privacy, life insurance, etc.
Screening
• Retained State counsel
assesses for viability
• Analysis of legislation and
regulation impact (critical,
serious, not critical, N/A)
• Assignment to State
lobbyist with copy to
Regional Director
• 72-hour service level
turnaround to Lobbyist
• Viable legislation/regulation
action plan developed and
implemented with Regional
Director
• @150 proposed laws or
regulations YTD requiring
lobbying for resolution. We
expect this number to go higher
with ACA implementation in the
States.
Lobbying
Coalition Building to Resolve and Monitor Issues
Aflac Government Relations works with several industry trade associations, legislative and
supervisory groups to protect Aflac’s interests and expand market opportunities.
Public Sector Associations
Industry Associations
International Associations
8
Primary Federal Workstreams With State-level Implications: Healthcare Reform
Federal healthcare reform has downstream State consequences and requires close monitoring and
mitigation.
Issue Area
Healthcare Reform
Mini-meds, FAQ 7
NAIC Model Law review and PPACA
Supplemental Products on Exchanges
Federal Insurance Office (FIO)
Post-Financial Crisis Rules
Agent Licensing (NARAB II)
9
Governmental Relations
State Alignment
WA
M
E
MT
VT
ND
NH
MN
OR
WI
ID
NY
SD
MI
WY
NV
PA
NE
UT
CO
CA
KS
IA
IL
MO
OH
IN
MD
WV VA
OK
NM
NC
HI
TX
AK
SC
AR
M
S
AL
N
J
DE
DC
KY
TN
AZ
RI
MA
CT
GA
LA
FL