Corporate forms and organisational choice in international insurance

CORPORATE FORMS AND ORGANIZATIONAL C H O I C E I N I N T E R N A T I O N A L IN S U R A N C E Corporate Forms and Organizational Choice in International Insurance Edited by ROBIN PEARSON AND TAKAU YONEYAMA Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © Oxford University Press 2015 The moral rights of the authors have been asserted First Edition published in 2015 Impression: All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America British Library Cataloguing in Publication Data Data available Library of Congress Control Number: 2015938193 ISBN 978–0–19–873900–5 Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY Links to third party websites are provided by Oxford in good faith and for information only Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work Acknowledgements The editors wish to thank the Dai-ichi Life Insurance Corporation for its generous support for the research project upon which this book is based We offer our sincere thanks to Ms Yukie Owada and Ms Yuki Fukui, assistants at Hitotsubashi University, who handled the administrative side of the project with great skill and efficiency We are also most grateful to those colleagues who not appear as chapter authors in this volume but who nevertheless made invaluable contributions during the course of the project, namely Christopher Kopper, Tim Guinnane, Heather Nelson, André Straus, and Jochen Streb We thank the anonymous readers for Oxford University Press for their insightful comments on an early draft and last, but not least, we wish to thank the team at OUP, in particular Clare Kennedy and David Musson, for their patience and support in helping us bring this book to publication Robin Pearson and Takau Yoneyama Contents List of Figures List of Tables Notes on Contributors Corporate Forms and Organizational Choice in International Insurance: An Overview of the History and Theory Robin Pearson and Takau Yoneyama ix xi xv Part I The Variety, Choice, Governance, and Regulation of Organizational Forms Tsuneta Yano, Founder of the First Mutual Company in Japan: Was He an Obstinate Mutualist? Takau Yoneyama Organizational Choice in UK Marine Insurance Robin Pearson and Helen Doe Risk Management by Mitsubishi: From Self-Insurance to Captive Insurance Hisaaki Kamiya The Survival and Success of Swedish Mutual Insurers Mats Larsson and Mikael Lönnborg Organizational Forms in Insurance: A Comparison of the USA and Germany during Industrialization Robin Pearson 29 47 68 93 114 Part II Mutual Insurance Organizations in Uncertain Environments The World Insured South Africa: Early Insurance Activities of Insurance Companies in South Africa, 1820–1910 Grietjie Verhoef 145 Business Strategies under Conditions of Uncertainty: The Rise of Mutual Life Insurers in Colonial Australia Monica Keneley 169 Support for Mutual Insurance Companies during the Franco Dictatorship (1939–75) Jerònia Pons Pons 193 viii Contents Part III The Performance of Different Organizational Forms 10 The Development of the Mutual Form and Its Influence on the Life Insurance Industry: Evidence from Japan during the Period 1881 to 1935 YingYing Jiang 11 Growth Performance and Organizational Forms: The Case of Swedish Life Insurance, 1890–1950 Magnus Lindmark and Lars Fredrik Andersson 217 243 Part IV Demutualization 12 An Attempt by a Black Mutual Life Insurance Company to Demutualize: The Case of Golden State Mutual of Los Angeles Natsuki Kinoshita 263 13 The Insurance Demutualization Process Develops in Spain with Mapfre Leonardo Caruana de las Cagigas 284 Bibliography Index 301 321 List of Figures 8.1 Factors influencing the emergence of life insurance mutuals 172 8.2 Professor Simon’s character-reading lecture entertainment 188 11.1 Organizational structure of the Swedish life insurance market, 1890–1948 246 11.2 Crude mortality rate (deaths per 100 inhabitants) and log real male wage for blue-collar workers (1910–12 = 1) in Sweden, 1855 to 1950 248 11.3 Real average policy size (SEK in 1890 prices) and number of policies in thousands in the Swedish life insurance market, 1890 to 1950 249 13.1 The new organizational structure of MAPFRE in 2008 297 .. .CORPORATE FORMS AND ORGANIZATIONAL C H O I C E I N I N T E R N A T I O N A L IN S U R A N C E Corporate Forms and Organizational Choice in International Insurance Edited by ROBIN PEARSON AND. .. Development of International Insurance (Pickering and Chatto, 2010); and in P Borscheid and N V Haueter (eds), World Insurance (Oxford University Press, 2012) She has published on social insurance in Geoffrey... interests include insurance history and insurance regulation Recent publications include ‘The Role of Insurance in the Rapid Modernization of Japan’ in P Borscheid and N V Haueter (eds), World Insurance