37 Pages Posted: 20 Jun 2005
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.
Keywords: Life insurance, Degree of competition, Collusion, Japan
JEL Classification: G22, L13, L21
Suggested Citation: Suggested Citation
Souma, Toshiyuki and Tsutsui, Yoshiro, Recent Competition in the Japanese Life Insurance Industry. ISER Discussion Paper No. 637. Available at SSRN: https://ssrn.com/abstract=744244 or http://dx.doi.org/10.2139/ssrn.744244