Tatsuo Kurogi

After the end of the Second World War, Japanese life insurers severely suffered from financial problems amid hyperinflation, and as part of the rehabilitation process, thirteen stock life insurers among them underwent mutualization consecutively in the postwar years of 1947-1948. The observed key drivers of these insurers’ mutualization include dissolving Japanese conglomerates, management succession, confrontation against labor unions, and policyholder interests. Comparative analysis between Japan and the U.S./Canada reveals that the key drivers/motivations for mutualization significantly differed by region, comprising several local- and event-driven factors, unlike those for demutualization such as access to capital markets and reduction of agency costs.

Thirteen stock life insurers in Japan underwent mutualization consecutively in the postwar years of 1947-1948. The observed key drivers of these insurers’ mutualization include dissolving Japanese conglomerates, management succession, and confrontation against labor unions. Comparative analysis between Japan and the U.S./Canada reveals that the key drivers for mutualization significantly differed by region, comprising several local- and event-driven factors, unlike those for demutualization.