Recent Competition in the Japanese Life Insurance Industry
Kyoto Gakuen University
Osaka University - Graduate School of Economics
ISER Discussion Paper No. 637
This paper examines a change in the level of competition in the Japanese life insurance industry over the last 17 years. We estimate the first order condition for profit-maximizing insurance oligopolies to obtain the degree of non-competition and collusion. Estimation results suggest that: 1) not only stock companies, but also mutual companies maximize their own profits rather than pay out dividends to policyholders; 2) competition has become stronger since 1995; 3) revision of Insurance Industry Law and failures of insurance companies promoted the competition; and 4) the competition in the recent years is still more lax than the pre-war period.
Number of Pages in PDF File: 37
Keywords: Life insurance, Degree of competition, Collusion, Japan
JEL Classification: G22, L13, L21
Date posted: June 20, 2005
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