Using Technology to Stay Ahead
Japan Airlines' (JAL) employees Satoru Okuyama, left, and Kaneto Kawasaki do maintenance work on a Boeing 747 being refurbished at JAL's Haneda Airport maintenance facility. JAL is among the 95% of Tokyo Stock Exchange listed companies that offer AFLAC policies to their employees. JAL employees own approximately 6,500 AFLAC policies. The maintenance facility pictured here is one of three for JAL.
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New technologies are allowing us to extend our competitive position. Last year many of our individual agencies began using Cyclone, which is a Japanese version of our U.S. SmartApp. Cyclone allows our sales agencies to electronically transmit policy applications to our headquarters in Tokyo. Regulatory approval of Cyclone was historic in that AFLAC became the first company permitted to accept an electronic signature rather than the traditional personal seals to execute an insurance contract. Approximately 1,000 agencies transmitted policies via Cyclone in 2000. We believe Cyclone will help improve efficiency and service to our customers.
Another first for AFLAC in 2000 was our initiative to sell insurance over the Internet. In May 2000 we formed a new company, aflacdirect.com, which is a partnership with a subsidiary of NTT, the leading telecommunications firm in Japan. We offer Internet versions of our cancer term life and Rider MAX coverages via aflacdirect.com. We recently began selling an education support annuity plan for the parents and grandparents of young children. By expanding our distribution system to include the Internet, we believe we can effectively reach more customers.
Investing in new technologies like Cyclone and aflacdirect.com helps us to remain the most efficient insurance company in Japan. Operating as a low-cost producer is critical to AFLAC Japan's success. It enables us to offer the best products at the best prices while providing the best compensation to our sales force. It also allows us to extensively promote our brand through national advertising.
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