Aflac (AFL) Ties Up to Cater to Employees' Mental Health Issues
Aflac Incorporated AFL recently collaborated with the digital health platform NeuroFlow to provide a cutting-edge mental health solution to AFL’s new or present fully insured customers holding Group Long-Term Disability policies. The NeuroFlow solution is expected to be extended to Aflac’s eligible clients from the third quarter of 2022.
Shares of Aflac have lost 4.3% on Mar 1, replicating declines in broader markets.
The recent partnership highlights the dual endeavor of Aflac. Firstly, it intends to extend NeuroFlow solution to its employees, thereby enabling them to detect and navigate either prevailing or undiscovered behavioral health issues. The solution offers self-service resources, which makes it easier to detect the behavioral health conditions in advance and stop the situation from aggravating. The latest move will result in better health outcomes through constant tracking of health conditions.
Secondly, Aflac intends to upgrade its Group Long-Term Disability offering by integrating the mental health solution into it. With AFL insuring over 1,000 lives through the offering, strengthening of the same is likely to entice more customers to opt for Group Long-Term Disability policies. Aflac is the leading provider of short-term disability benefits and long-term disability benefits across the United States, and effective solutions similar to the NeuroFlow minimize the need of customers to file claims. This bodes well for insurers as higher claims can lead to substantial cash drainage.
NeuroFlow seems to be the apt partner for complementing Aflac’s endeavor as the mental health solution is devised to fill discrepancies in the behavioral health programs offered by employers and has services to reach out to high-risk individuals and offer them apt care.
Efforts similar to the latest one are time opportune as well since Americans have been grappling with rising mental health issues for quite some time. The COVID-19 pandemic has only aggravated the scenario further, thereby necessitating the need for accessible and improved behavioral health services. This clearly indicates solid demand for behavioral healthcare services, which gives Aflac the perfect opportunity to capitalize on. Per the American Psychological Association, 67% of Americans reported of grappling with higher stress amid the pandemic. There is a dire need to cater to the mental and emotional health issues particularly witnessed in the workplace.
Considering the recent partnership with a digital health company offering self-service resources, Aflac seems to be in sync with the ongoing trend of digitization integration across every sphere of life. AFL has pursued digital transformation efforts, which have improved its operational efficiencies. Meanwhile, the insurer has undertaken significant digital investments to transition to digital sales methods and enable hassle-free rendering of services amid the volatilities inflicted by the pandemic that restricted face-to-face sales opportunities.
Shares of Aflac have gained 19.4% in a year compared with the industry’s rally of 17.7%. AFL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are Horace Mann Educators Corporation HMN, Old Republic International Corporation ORI and CNO Financial Group, Inc. CNO. While Horace Mann sports a Zacks Rank #1 (Strong Buy), Old Republic and CNO Financial carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Horace Mann’s earnings surpassed estimates in each of the last four quarters, the average being 22.80%. The Zacks Consensus Estimate for HMN’s 2022 earnings suggests an improvement of 1.1% from the year-ago reported figure, while the same for revenues suggests growth of 1%. The consensus mark for 2022 earnings has moved 8.4% north in the past seven days. Horace Mann has a Value Score of B.
The bottom line of Old Republic outpaced earnings estimates in each of the last four quarters, the average surprise being 38.74%. The Zacks Consensus Estimate for ORI’s 2022 earnings has been revised upward by 3.7% in the past 30 days. Old Republic has a VGM Score of B.
CNO Financial’s earnings surpassed estimates in each of the trailing four quarters, the average being 25.48%. The Zacks Consensus Estimate for CNO’s 2022 earnings has moved 2.1% north in the past seven days. CNO Financial has a VGM Score of B.
Shares of Horace Mann and Old Republic have gained 2.4% and 30%, respectively, in a year. Meanwhile, CNO Financial stock has lost 3.7% in the same time frame.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
Aflac Incorporated (AFL) : Free Stock Analysis Report
Old Republic International Corporation (ORI) : Free Stock Analysis Report
Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
