AA&B: Roughly how many independent agents/brokers represent Aflac?

Agypt: We are always seeking talented entrepreneurs to join Aflac's sales force of 70,000 strong, of which more than 22,000 are broker producers. Since we rolled out the new broker initiative on January 5, 2009, the first half of the year was educating brokers on the substantial changes we have made with the Aflac for Brokers initiative. This third quarter saw a substantial increase in new broker premium growth over the first, and the fourth quarter is showing even more momentum. Additionally, we have expanded the broker team with 15 new market vice presidents across the country and 100 broker development coordinators (BDCs) that act as our carrier reps strategically placed throughout the U.S. BDCs are responsible for developing and managing client relationships with insurance brokers. They serve as one local, single point of contact for brokers who are supported by market vice presidents. They target large employer opportunities in their market.

AA&B: What products are available to independent agents/brokers, and which are the most popular with them?

Agypt: As the marketplace has evolved, consumers and employers want to see more options in health insurance. To help address these needs, Aflac enhanced and/or launched new products so that more people can have access to the benefits that our insurance policies provide, including a wide range of life products, short-term disability, Disability Income Protection Advantage (DIPA), Accident Indemnity Advantage (AIA), lump-sum products for cancer and critical illness, and Aflac Essentials, a combination of accident, hospital confinement sickness indemnity and life. We are very excited about these new and enhanced products as we roll out group products through our Aflac Group Insurance platform. These include critical illness, accident, disability, whole life, mid med, cancer, hospital indemnity plus, hospital indemnity product and term life. Our most popular products are accident, critical illness, disability and cancer.

AA&B: What marketing assistance do you offer them?

Agypt: The newly launched Aflac Broker Services Web site (www.aflacforbrokers.com) is our brokers' one-stop shop for marketing and service tools, as well as Aflac services. Marketing tools are also available, from print and banner ads to billboards and presentation templates. With our recent acquisition of Continental American Insurance Company (CAIC), Aflac now offers both individual and group products. It is our belief that we will compete very favorably for broker business because of a strong product portfolio, strong core enrollment systems and multiple value-added services that brokers can deliver to their clients. It's a winning formula for the broker community.

AA&B: Do you offer different commission structures for independent versus captive agents?

Agypt: We offer a standardized compensation schedule across the country.

AA&B: Are there regions of the country where Aflac products are more popular with independent distributors?

Agypt: Based on our sales trends, there isn't a particular region where Aflac products are more prevalent in one market or another. Our market share is consistent across the country, including Puerto Rico & Guam.

AA&B: Progressive recently unveiled an advertising campaign highlighting its independent agent distributors. Anything similar in the works for the Duck?

Agypt: Aflac recently launched a new integrated marketing campaign: "You Don't Know Quack." The campaign is designed to take Aflac's brand awareness to a new level by moving consumers from name recognition--and its iconic Aflac Duck--to understanding the type of insurance protection the company provides. Most Americans know the power of the Aflac brand, but don't understand the products and services we offer. With our new campaign, we're entering into a real dialogue with the public.

To support the Broker Initiative, the Aflac Duck will continue to show businesses how Aflac can help them provide employees with outstanding benefits at no direct cost to their companies throughout the "You Don't Know Quack" campaign.