of higher copayments and health care insurance premiums. Copayments have tripled in the last 10 years, and consumers are paying more out of their own pockets for health care than ever before.

Our goal is to provide affordable products that help consumers with that increasing burden. We listen closely to what consumers want and need, and we believe their collective interest is in products that provide "living" benefits. For several years, the market for living-benefit products, known in Japan as the third sector, has been expanding, while other segments of the insurance industry have been shrinking.

To strengthen our portfolio of living-benefit products, we introduced two new versions of EVER, our popular stand-alone medical product. EVER Half, the first of the two new products, has the same hospitalization benefits as our original EVER product; however, the premiums are reduced by half when the policyholder reaches age 60 or 65. EVER Bonus, the second new product, has the same features of EVER Half, but also provides a bonus benefit when the policyholder has not filed a claim over a specified period of time. These new versions together accounted for roughly 45% of our medical sales on a premium basis in 2005.

In addition, we introduced a new cancer insurance product in June 2005. This new product incorporates a wellness benefit, while also increasing the daily outpatient benefit to the same level as the hospitalization benefit. The reception to this new product has been very positive. Aflac Japan also developed a new product called WAYS, which we introduced in January 2006. The product is a life insurance policy that allows a policyholder to convert a portion of their life insurance to medical, nursing care, or fixed annuity benefits at a predetermined age.

We believe Aflac's distribution system remains one of the strongest and most efficient in Japan. Similar to the way we tailor our products to match the needs of our customers, we also customize our distribution channels to fit the buying habits and preferences of consumers. Reflecting changed employment patterns, Aflac's sales growth through large affiliated corporate agencies has slowed for several years. However, we still consider the corporate channel to be an important part of our distribution system and the best means for reaching workers at large employers.

Aflac Japan has focused on the development of new agencies, primarily individual agencies, to meet the needs of individuals at home and through small businesses. We recruited 4,400 new agencies in 2005. Of these new agencies, 82% were individual rather than corporate agencies. Our focus on recruiting individual agencies reflects the importance of reaching employees at smaller businesses. It also better positions us to consult with potential customers about their insurance needs. Aflac Service Shops, which are primarily owned and operated by individual sales agencies, offer consumers a convenient location to discuss insurance needs and purchase Aflac products. By the end of 2005, there were more than 400 Aflac Service Shops throughout the country.

We also continued to reach consumers through our strategic marketing alliance with Dai-ichi Mutual Life. Dai-ichi Life produced strong results in 2005, selling more than 277,700 Aflac cancer life policies. We have been, and continue to be, very pleased with our alliance with Dai-ichi Life, and they remain an important part of our distribution system. We believe our alliance has been one of the most effective partnerships in the insurance industry.