In this article, we will take a look at the top 10 alternatives to Aflac. If you want to skip our detailed analysis, you can go directly to Top 5 Alternatives to Aflac.
The Insurance Outlook in 2024
According to a report by KPMG, insurance leaders have a pretty bullish outlook on the insurance industry. It is to be noted that the positive sentiment has been comparatively lower compared to previous years. 75% of CEOs surveyed held a positive outlook, down from 90% from the previous year. 82% of the CEOs on the other hand are particularly concerned about the impact of cybercrime and the rising cost of living. While technology seems to be a threat to the future of insurers, 60% of CEOs stated they were buying disruptive technologies. The number grew by 6 points compared to 2022.
On April 2, Reuters reported that the shares of health insurers in the US collapsed by 6% to 12% right after final rates for Medicare Advantage payments for 2025 were announced. The final rates hinted towards a cut. Such has been particularly alarming for health insurers as they foresee a decline in margins. High medical costs and lack of clarity in the insurance industry are even more triggering for primary health insurers. The decline in shares has also impacted the S&P 500 index along with the blue-chip Dow index. Kevin Fischbeck, an analyst at BofA Securities, suggested that the clouded insurance environment coupled with low rates may push companies to limit the number of benefits they provide.
Aflac: Why Are People Choosing Aflac?
Aflac Incorporated (NYSE:AFL) is one of the best supplemental insurance companies based in the United States. The company covers out-of-pocket expenses usually not covered by health insurance packages. It provides accident insurance, cancer insurance, critical illness insurance, dental insurance, and final expense insurance. Users can use the insurance service to cater to emergency accidents, the emotional and financial impacts of cancer, the costs associated with crucial illnesses, and sudden funeral expenses. Aflac has been operational for the past 63 years and has been protecting over 50 million people with its insurance policies.
Aflac Incorporated’s (NYSE:AFL) commitment to society explains why it is among the most favorable insurance companies. On February 14, Aflac Incorporated (NYSE:AFL) announced a donation of $1.5 million to the Aflac Cancer and Blood Disorders Center. Of this, $1 million is dedicated to the organization’s research facility. The remaining amount will then cater to the critical patient needs of children at the Children’s Hughes Spalding Sickle Cell Clinic. The clinic caters to more than 85% of patients who rely on Medicaid or are uninsured. The center provides healthcare services to more than 2,600 children and adolescents every year. It is also home to more than 380 clinical studies with 71 full-time research employees. The Aflac Childhood Cancer Foundation has provided over 28,000 My Special Aflac Ducks to kids across the United States, Japan, and Northern Ireland since 2018.
Prominent Alternatives in the Supplemental Insurance Industry
The Cigna Group (NYSE:CI), MetLife, Inc. (NYSE:MET), and State Farm Insurance are among the leading names that provide supplemental insurance. Let’s take a look at some offerings from these companies. You can also take a look at the largest insurance companies in the US by assets in 2024.
The Cigna Group (NYSE:CI) is a leading managed healthcare and insurance company based in Connecticut, United States. The company provides health insurance plans, dental insurance plans, and medicare plans. The Cigna Group (NYSE:CI) provides personalized support to help customers deal with serious illnesses and injuries under its supplemental health plans. Other than cash benefits, users also enjoy discounts on health and wellness services such as nutrition and weight management. The company also provides coaching on money management and mental health.
MetLife, Inc. (NYSE:MET) is one of the largest providers of insurance, annuities, and employee benefits. The company is home to more than 90 million customers from across the globe. MetLife, Inc.’s (NYSE:MET) insurance lines provide coverage for auto, home, dental, and vision. Under its supplemental health insurance plan, the company provides users with lump sum payments to deal with unexpected injuries, accidents, and critical illnesses. Users can use these payments for prescriptions, deductibles, medical treatments, and copayments. Users also enjoy extended accident and health training.
State Farm Insurance is a private group of mutual insurance companies based in Illinois, United States. The company has been operational for over 100 years and is known for its life, home, and car insurance rates. The company offers two primary supplemental insurance plans which include Supplemental Health Insurance and Supplemental Health Insurance Plus. Supplemental Health Insurance pays users with $1,000 in admissions benefits. Supplemental Health Insurance Plus on the other hand, also covers extended care, emergency accident, outpatient surgery, and ambulance services.
Now that we have discussed the supplemental insurance industry, let’s discuss the top 10 alternatives to Aflac. You can also read our piece on the best states for homeowners insurance in the US.
Top 10 Alternatives to Aflac
Our Methodology
To make our list of Top 10 Alternatives to Aflac, we employed a consensus approach. We went over several sources, including industry reports, our own rankings, and multiple similar rankings. For our primary metric, we sourced the number of customers from each company’s official website. In case of unavailability of data, we used the number of employees as a primary metric for the missing companies. As for our secondary metric, for public companies, we sourced the trailing 12-month revenue, as of December 31, 2023, from Macrotrends. To quantify the “value” or “size” of private companies, we selected the annual revenue available for the most recent fiscal year. The annual revenue was sourced from official statements by the company. Our list is in ascending order of number of customers or employees primarily, and trailing 12-month revenue as of December 31, 2023, for public companies, and annual revenue for private companies, secondarily.
Top 10 Alternatives to Aflac
10. New York Life Insurance Company
Number of Employees and Agents: 26,000
Annual Revenue (2023): $28.84 Billion
New York Life Insurance Company is home to 12,000 agents and 14,000 employees coming from over 120 countries across the globe. The company’s global presence is a testament to its position on our list. The company has been providing customized life insurance plans for the past 175 years to its customers. Under its supplemental health insurance policy, New York Life Insurance Company provides group products to cover hospital indemnity, home care, hospital recovery, and critical illnesses. It reported revenue worth $28.84 billion in the fiscal year 2023.
9. The Allstate Corporation (NYSE:ALL)
Number of Customers: 16 Million
Revenue (TTM) as of December 31, 2023: $57.09 Billion
With over 16 million customers on board, The Allstate Corporation (NYSE:ALL) is one of the best alternatives to Aflac. The company provides coverage across auto, home, renters, condo, and motorcycle insurance lines. Under its supplemental insurance plan, the company provides several coverage options including accident coverage, hospital indemnity, identity protection, life insurance, and cancer insurance. The company also covers expenses for regular physicals, tests, and screenings to help individuals maintain their health and well-being. The Allstate Corporation (NYSE:ALL) has a trailing 12-month revenue of $57.09 billion, as of December 31, 2023, and was founded in 1931.
8. Humana Inc. (NYSE:HUM)
Number of Customers: 17.1 Million
Revenue (TTM) as of December 31, 2023: $106.37 Billion
Humana Inc. (NYSE:HUM) ranks eighth on our list of the top alternatives to Aflac. The company is home to more than 17.1 million members. The health insurance company is based in Kentucky, United States. Under its medicare plans, the company now also provides coverage for dental, vision, and hearing benefits. The company offers a range of supplemental insurance plans that provide coverage for hospital benefits, foreign travel emergencies, excess charges, hospice care, and skilled nursing facility care. Humana Inc. (NYSE:HUM) has a trailing 12-month revenue of $106.37 billion, as of December 31, 2023.
7. Prudential Financial, Inc. (NYSE:PRU)
Number of Customers: 18 Million
Revenue (TTM) as of December 31, 2023: $15.08 Billion
Prudential Financial, Inc. (NYSE:PRU) is one of the best alternatives to Aflac with 18 million customers on board. Prudential Financial, Inc. (NYSE:PRU) provides a range of supplemental health benefits. The company provides coverage for accidents, critical illness, and hospital indemnity. The company has a simple process, allowing users to submit claims via email, phone, or paper. The claims are reviewed within five days, and lump sum payments are directly sent to the claimants. The company has a trailing 12-month revenue of $15.08 billion, as of December 31, 2023.
6. Mutual of Omaha
Number of Customers: 18.1 Million
Annual Revenue (2023): $4.32 Billion
Mutual of Omaha ranks sixth on our list of the top alternatives to Aflac. The company is a prominent medicare supplement insurance provider. The company’s supplemental insurance policy covers 20% of health costs typically not covered by the original medical insurance plan. The company pays 99% of medicare claims within 24 hours to ensure customers face no delays. Users do not have to find referrals to see specialists, as customers can keep their hospitals and doctors standardized for supplemental care. The company also covers supplemental costs when a customer is out of the country or is traveling.
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Disclaimer: None. Top 10 Alternatives to Aflac is originally published on Insider Monkey.