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

1


3

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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 do 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

1. Corporate Forms and Organizational Choice in International
Insurance: An Overview of the History and Theory
Robin Pearson and Takau Yoneyama

ix
xi
xv

1

Part I. The Variety, Choice, Governance, and Regulation
of Organizational Forms
2. Tsuneta Yano, Founder of the First Mutual Company in
Japan: Was He an Obstinate Mutualist?
Takau Yoneyama
3. Organizational Choice in UK Marine Insurance
Robin Pearson and Helen Doe
4. Risk Management by Mitsubishi: From Self-Insurance to
Captive Insurance

Hisaaki Kamiya
5. The Survival and Success of Swedish Mutual Insurers
Mats Larsson and Mikael Lönnborg
6. 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
7. The World Insured South Africa: Early Insurance
Activities of Insurance Companies in South Africa, 1820–1910
Grietjie Verhoef

145

8. Business Strategies under Conditions of Uncertainty:
The Rise of Mutual Life Insurers in Colonial Australia
Monica Keneley

169

9. Support for Mutual Insurance Companies during the

Franco Dictatorship (1939–75)
Jerònia Pons Pons

193


viii

Contents
Part III. The Performance of Different Organizational licio 296
endowment insurance 166, 230
England, see United Kingdom
Equitable Life Assurance Society of
New York 130n.63, 131, 133–4,
154–5, 158–9, 166
Eriksson, L. 248
European Union 104, 112, 288, 290
Factory Insurance Association 135
‘factory mutuals’ 6
Fairbairn, John 156–7, 159
Fatal Accidents Act (1846) 60
Fatal Accidents (Damages) Act (1908) 61,
61n.47
Federación de Mutualidades de Cataluña 206,
206n.25
federal deposit insurance 19
Federal Emergency Management Agency (US) 15
‘FET y de las JONS’ 207
Feuercasse (insurance fund) 4, 122–3,
123n.30–1

Financial Services Modernization Act 1999
(US) 284
Finanzas Mapfre 292
Finland 6
Fire Aid 94–5, 106
‘fire contracts’ (Hamburg) 4, 122
fire guilds (Brandgilden) 122, 122n.28
fire insurance
in Canada 7
and corporate self-insurance 69
development of 4–5
in early Sweden 94
farmers’ mutuals in Canada 7
first to penetrate colonial markets 145
in Germany 121–4, 122
and Mitsubishi 73
and Norwegian mutuals 16
in South Africa 149–55, 150n.21, 158–60,
161–2
in Spain 194, 194n.2, 202
and Spanish mutuals 196
in Sweden 6–7, 18, 98–9, 253
and Tsuneta Yano 43–4, 44n.31
in the United States 119–21, 119–20,
135–6, 138

323

Fire Offices Committee of London 150
firm-effect model 258

First International Congress of Actuaries
(Brussels) 34
Folket 108
Folksam 100, 103, 107–11, 109n.38–9, 250
Fortis 14
France 7–8, 10–11, 12, 18n.87, 39n.8
Franco, General 193–4, 197, 199–200, 205,
209, 212–13, 286, 289
Friendly Insurance 56
Fujisawa, Dr. Rikitaro 31
Fukuhara, Arinobu 230
Fukuzawa, Yukichi 39, 226
funded pension plans 105
Galicia S. A. 210
Generali (Italy) 284, 296
Germany
emergence of compulsory contribution
employment-based social
insurance 11
fire insurance in 121–4, 122
German miners’ insurance
associations 11–12
and Knappschaften 8
leading insurance market before
1914 114–16
life, health, and accident insurance 124–6,
126n.47/49, 127, 128, 132–3, 137–40
marine and transport insurance in 116–17
mutual property-casualty insurers in 18n.87
mutuals in 123, 125–6, 133

non-life insurance markets 140–1
and specialist reinsurance 6
Gibrat’s law 253
Gloster, J. 265
Gloucester and Severn Estuary Mutual Marine
Insurance Society 63
gold rushes 146–7, 160, 172, 176, 182–3
Golden State Financial Corporation 268
Golden State Minority Foundation 279
Golden State Mutual Agency Club 277
Golden State Mutual Life Insurance Company
(GSM)
community-specific factors 273–6
conclusions 278–83
demutualization planning of 268–9
firm-specific factors 276–8
formation and development of 267–8
introduction 23, 263–4
market-specific factors in 269–71,
270–2, 273
political-specific factors 276–8, 277n.56
Gotha Life Insurance Bank, see Gothaer
Lebens-versicherungsbank


324

Index

Gothaer Lebens-versicherungsbank 34, 36,

43, 125, 133
Graham, Colonel John 147
Grahamstown Journal 155
Gram (Grupo Asegurador Mutuo) 288–9
Gray, A. C. 180
Great Fire of London 4
Great Kanto Earthquake 89
Gregorio y Villota, Isidro de 210, 286
Gresham 183
Greve, Henrich R. 16
Groningen 3
Guardian Assurance and Trust Company 159
Guardian Life Insurance 265
Guindos, A. De 208
Guinnane, Timothy W. 11
Hagel-Assekuranz Verein (HAV) 139–40
hail insurance 139–40
Hamburg 4
Hansmann, Henry 19, 20, 20n.94, 37, 157,
170, 241
Harbours, Docks and Piers Clauses Act
(1847) 60
Harrington, Scott E. 69
Hatsune Maru (steamship) 73
Hausman test 256
health insurance 128–40, 129, 129n.57,
130n.59
Henderson, A. B. 265
Henry Head and Co. 74, 87
Hermes (later Hermes S. A.) 210

Herndon, Alonzo F. 266
heteroskedasticity 256
Higgs, H. 285
Hiramatsu, Jinshiro 238
Hirao, Hachisaburo 89–90
Hohne and Redelinghuys (auditors) 154
‘Holding Companies, Mergers and
Acquisitions in the Insurance
Industry’ (AMA) 282
Horai life 38, 42, 229
Horwood, Sir Arthur Owen 149
Houghton, John 149
Houston, Norman B. 274
Hyde, James 133
Imperial German Insurance Bureau 12
Imperial Liability Law 1871 (Germany) 126
Imperial Marine Insurance Company 71
In Expectation of the Establishment of a NonProfit Based Life Assurance Company
(Yano-pamphlet) 33, 35
Indemnity Marine 58
Independent Order of Rechabites 178
India 64

Industrial Assurance Company of South
Africa 166
industrial insurance
accident 196, 205–6
in Spain 203, 203n.22
in Sweden 95, 253
Industrial Life Assurance Company of South

Africa 149, 162
informational hypothesis 245–7
ING (Netherlands) 14, 284
INI (Instituto Nacional de Industria) 206
Inmobiliaria Mapfre, see Mapfre Investments
Institute of London Underwriters 59
insurance
economics of organisational forms 15–20
history of 5–15
structure of book 20–6
Insurance Act 1903 (Sweden) 96, 251–2
Insurance Business Act 1900 (Japan) 30–2,
35–6, 44, 46, 82, 82n.44, 91, 217–18,
218n.3, 224
Insurance Business Law 1948
(Sweden) 96–102, 251
Insurance Code of the State of California 267
Insurance Company of North America 118
Insurance Inspection Board
(Sweden) 98–100, 98n.16
Insurance Workers International Union 277
International Group of P&I clubs 64; see also
London Group
International Transport Insurance
Association (Germany) 117
investment trust companies (ITCs) 287
Iran 12
Iwakura Mission 30, 30n.6–7
Iwasaki, Hisaya 68, 238
James, Harold 114

Japan
burial societies 8
and compulsory state-run industrial life
assurance 12
exchanging the American business
model 293
first modern life assurance company
in 30–1, 35
and ‘Kyosai’ 7
and Mitsubishi Goshi Kaisha 22, 68
and P&I clubs 65
premium-based and assessment-based
mutuals 10
and Tsuneta Yano 29
see also Japanese mutuals; Mitsubishi
Japan Doctors Kyosai Life 38
Japanese Company Act (1893) 31
Japanese mutuals


Index
advantages of 39
characteristics of 219–21, 221
conclusions 241–2
development of 217–19, 219n.4, 220
emergence of 224–6, 224n.12, 225, 227–9,
229–31, 231–2, 233–7, 234n.26, 235–6
and joint-stock companies 31–2
management control 237–41
selling with-profits policies 221–4,

222n.9, 223
and Tsuneta Yano 34
Jiang, YingYing 22, 25
Joint Stock Companies Limited Liability Act
1861 (South Africa) 162
joint-stock companies
alternatives to mutuals 16–19
in Australia 181–2, 184
in Cape Colony 145
competition to mutual hull associations 61
and conversion of Dai-ichi Mutual Life 46
fire insurers in US 135
in Germany 123–6
and Harold James 114
in Japan 217–21, 224, 230–4, 233n.22,
236–7, 237–42
and Japanese mutuals 31–2
natural successors to underwriters/
mutuals 57–8
P&I clubs did not compete with 62
and private underwriters 67
in Spain 284–99
in Sweden 95, 99–100, 100–3, 105–8, 112,
243–7, 250–4, 258–9
in US 118, 120–1, 128–9, 136, 265–7
Kader, H. A. 17, 17n.82
Kadono, Ikunoshin 39, 226, 240
Kagami, Kenkichi 75, 87, 89–90
Kamiya, Hisaaki 6, 21–2
Kampo (industrial life assurance) 12

Kansa 109–10
Kataoka, Naoharu 32, 36
Keio Gijyuku School 226
Keller, M. 265
Keneley, Monica 22, 24, 26n.99, 148
Kiev Union for the Insurance of Sugar
Refineries 6
Kikuchi, Kantaro 75
Kimura, Kusuyata 74
Kimura, Rinjiro 89
King, Wyllis 136
Kingston, Christopher 49, 51–2
Kinoshita, Natsuki 23, 266
Knaggs, O. 149
Knappschaften 8, 125
Kokko life 38–9, 42, 229, 241

325

Konan Gakuen 89
Kopper, Christopher 6
Korea 12
Kyodo Unyu Kaisha 70
Kyosai 500 Members 30, 33–5
Kyosai Life Insurance 34–5, 220–1
Kyosai (not-for-profit cooperatives) 7
La Compañía General de Reaseguros
S. A. 211
La Constancia 211
La Estrella 296

La Unión y el Fénix 287, 296
labour market insurance 109, 109n.36
Lai, Gene C. 285
Lamm-Tennant, Joan 17, 17n.82
Landsbygdens Ömsesidiga
Brandforsäkringsbolags Förening 106
Landsorganisationen (LO) 108
Länsförsäkringar (LF) 106–12, 250
Larramendi, Ignacio Hernando de 288–9,
293–4
Larraz’s law 193, 201–2
Larsson, Mats 22
Lázaro, M. 208
life assurance, see life insurance
Life Assurance Act, no.13 1891 (South
Africa) 162
life insurance
in Australia 173–6, 174, 180–6, 181,
184n.51, 185; see also Australian
mutuals
and demutualization 280–3
early private for-profit 8
in England from 1721 9
first branch subjected to regulation 10–11
first companies mostly joint-stocks 10
in Germany 124–6, 126n.47/49, 127, 128,
132–3, 137–40
in Japan 12, 30–1, 35, 221–2, 221, 234,
234n.27
and Meiji Life 31

and mutuals 172
nationalization of 12
in South Africa 149, 153–5, 156–60, 164,
166–7
in Sweden, see Swedish life insurance
tontine 8–9
and Tsuneta Yano 43
in United Kingdom, see United Kingdom
in United States, see United States
in US/UK insurance before 1914 18
Life Insurance Bank 287
Lindmark, Magnus 23, 25, 94, 248
Liverpool Underwriters’ Association 58–9
livestock insurance 195


326

Index

Lloyd’s
alleged inadequacy of capital reserves 56–8
cheaper alternatives to 56
and coinsurance 53
competition to mutual hull associations 61
diversified into new lines 59
and insuring inferior risks 52
and marine insurance 3, 21, 49
P&I clubs did not compete with 62, 66
problems of asymmetric information 66

scheme of subscription underwriting 117
underwriters working in 34
unlimited liability a badge of strength 67
Lloyd’s agents re-entry into US insurance
markets 118
Lloyd’s coffee house 48
Lloyd’s List 48, 50, 52
Lloyd’s Register of Shipping 50, 52
London Assurance Corporation 47, 50, 56, 58
London Group 62, 64
Lönnborg, Mikael 22
Ludwig, Baron von 153
Macdonald, Alexander 149
McFall, L. 190, 190n.75
McGowan, James 151
McLean, I. W. 183
McNamara, Michael J. 285
Makanda (Xhosa prophet) 147
Mammoth Life and Accident Insurance
Company 271, 273
‘managerial discretion’ hypothesis 17, 247
Mannheimer 211
Mansfield, Lord 53
Manvell, G. R. 181
Manzano, Alberto 295
Mapfre Corporación 291–3, 299
Mapfre Finance 293
Mapfre Finance of Guipuzcoa 293
Mapfre Finance of the North 293
Mapfre financial field 292

Mapfre Foundation
and demutualization 210–12
a new social organization 23
ranking of 203
results of demutualization 297–9
story of 284–5, 286–97, 297
Mapfre Group (Gama) 288, 293
Mapfre Industrial SA 288–90, 292
Mapfre Investments 292
Mapfre Mutual Insurance, see Mapfre,
Mutualidad
Mapfre Mutual Patronal 289, 289n.18
Mapfre Mutualidad 290–1, 293
Mapfre SA 292, 294–6, 299
Mapfre Vida SA 288–90, 292

Mare Nostrum 210
marine insurance
adverse selection problem 47–53, 48n.2,
49n.50, 51n.10
changing organizational forms in UK 21,
65–7
and corporate self-insurance 69
early history of 2–3
in Germany 116–17
and mutuals 66
organizational choice 47
P&I clubs 60–5, 61n.47, 67
primacy of risk selection 53–6, 54n
in South Africa 149, 149n.15, 154

in Spain 196, 196n.11
structure after 1824 57–9, 59n.39
in Sweden 98–9
in United Kingdom 3, 21, 66–7
in United States 116–18, 121, 134
Martin, Thomas Jacques 179, 179n.32
Martínez, Jose Manuel 295–6
Massachusetts Hospital in Boston 128
Matran, Julio Castelo 293
Mecklenburg Life Assurance and Savings
Bank 126
Mediterranean trade 2
Meiji Fire Insurance Company 74
Meiji Life 30–1, 39, 218, 220–6, 220, 229–30,
233–5, 238–9, 238n.33
Meiji Restoration 43, 217
Meikyo Life 240
Merchant Shipping Act (1854) 61
Metropolitan Life 130–1
Mexico 7, 12
Mitsubishi
captive insurance 6, 25, 87, 89–92
loss financing 69–70
risk management 68–9
self-insurance 68–73, 70–1n.17, 72–3,
73–5, 76–81, 82, 83–6, 87
summary 91–2
Mitsubishi Iron and Steel Co., Ltd 82
Mitsubishi Kaisha 70
Mitsubishi Mail Steamship Company, see

Mitsubishi Kaisha
Mitsubishi Marine and Fire Insurance
Company 68, 82, 87, 87n.49, 89–91
Mitsubishi Shipbuilding and Engineering Co.,
Ltd 82
Mitsubishi Trading Co., Ltd 82
Mitsubishi Zaibatsu 238
Mitsui Bussan Kaisha, see Mitsui Co. Ltd
Mitsui Co. Ltd 69, 87
Morgan, Pierpont 133–4
mortality 9, 18, 23, 31, 128, 130–1, 171, 190,
246–51, 256, 258


Index
mortuary tontine 33
motor insurance 59, 287–9, 294
Muinsa (Mutualidad de Inversiones) 287,
287n.14
Murphy, Sharon Ann 9, 132
Musini 203
Mutua Balear, see Mare Nostrum
Mutua General de Seguros 203, 206, 210–11,
211n.39
Mutua Madrileña Automóvilística 203, 205
Mutua Nacional del Automovil 205
Mutual Holding Company (MHC) 14
mutual hull
associations 61–2
insurance boxes 3

Mutual Life Association (MLA) 189
Mutual Life Association of Victoria
179–80, 190
Mutual Life Assurance Society of the Cape of
Good Hope, see South African Mutual
Life Assurance Company
Mutual of New York 165
Mutualidad de Seguros del INI
(Musini) 208–9
Mutualidad Gallega de Seguros,
see Galicia S. A.
Mutualidad Sevillana de Seguros C. I. A., see
Compañía Anónima de Seguros y
Reaseguros
Mutualidades Laborales (workers’
mutuals) 205–7, 213
mutuals
advantages in Japan 39
advantages/disadvantages of 16–19, 19n.90
in Australia, see Australian mutuals
Canadian fire 7
‘class’ in US fire insurance 135–6
‘conscription’ 195
declined in non-life markets 8
did not issue individual policies 62, 62n.51
in Germany 123, 125–6, 133
grew rapidly in 1840/50 in US 118
and Guardian Life Insurance 265
joint-stock companies as natural successors
to 57–8

and life insurance growth/decline 10–11
and marine insurance 66
and minimization of aggregate costs 37
more offices formed in 1820s/early 1830s 9,
9n.42
mortuary tontine 33
New England factory 135–6, 135n.84
operation of ‘a posteriori’ calls 67
organizations as powerful players 6–7
persistently strong in Swedish
insurance 22–3

327
preferred by frontier and settler
economies 21
protected from predatory takeovers 13
in South Africa 149, 156–60, 162, 167
Spanish employers 7
in Sweden, see Swedish mutual insurers
and Tsuneta Yano 43–5
in United States 7, 14, 119–21, 129, 132–4,
137, 156
see also demutualization; Swedish mutual
insurers

Natal Colony 146, 148, 155, 158–9, 161,
163, 167
Natal Fire Assurance Company 158
National Association for the Advancement of
Colored People (NAACP) 273–4

National Board of Fire Underwriters (US) 115
national health insurance 11
National Industry Institute (INI) 208
National Insurance Company (NIC) 178–9
National Law Codes (King Magnus Eriksson) 94
National Mutual Life Association
(NMLA) 178–80, 183, 190
National Welfare Institute 206–7
nationalization 102
Nazis 24
Nelson, Richard R. 245
Neptune (ship) 159
Netherlands 3, 8, 10, 14, 146
New Idea of Life Assurance Rules, The (Yanopamphlet) 33, 33n.15
New York Life Insurance and Trust 128–9
New Zealand 11, 162, 165
Niehaus, Gregory R. 69
Nihon Kairiku Insurance 35–6, 41–2
Nippon Ishi Kyosai 229
Nippon Life 31–3, 35, 43, 218, 220–5, 233–6,
235, 238–9, 238n.31, 239, 239n.36
Nippon Marine Insurance Company 71
Nippon Sea and Land Insurance Company 71
Nippon Yusen Kaisha 50, 70, 89
Nisbet and Dickenson 151
Nitto Life 30, 219
Nobbs, R. K. 176
non-life insurance 7–8, 18, 35, 68, 71, 73, 75,
82, 87, 90–1, 140–1, 217
Nordea (bank) 104

North Africa 7, 12
North Carolina Mutual (NCM) 265
Northern Assurance Company (London) 166
Norway 16
Norwich Union Fire Society 149
Okano, Keijiro 34–36
Okayama Medical School 32


328

Index

Orange Free State 146–7, 161, 165–7
Ordinance no.10 (1891) 163
Orange River Colony, see Orange Free State
Organización Sindical y del Mutualismo
Laboral 207
Orphan Society of Philadelphia 128
P&I clubs 47
Palestine 7
Passenger Acts (1842 and 1847) 60
Pearson, Robin 21–2, 24–5
pension insurance, folkförsäkring 108
People’s Insurance Company (China) 13
Philadelphia druggists’ mutual fire insurance
company 136
Phoenix Assurance Company (London) 149,
151, 186
Plincke, John 63

Plus Ultra company 211, 287
Pons Pons, Jerònia 22, 24
population ecology theory 15–16, 15n.73
Port Elizabeth Bank 152
Port Elizabeth Fire and Marine Assurance
Company 166
Post Magazine and Insurance Monitor 161
Pottier, S. W. 18n.87
Praktiska Liv 108
‘principle of need’ 97
Private Insurance Law 1908 (Spain) 200,
200–1n.16
private stock companies 6–7, 149–50
Progressive Era 137
property insurance
in Germany 18n.87
and joint stock companies 5
in Sweden 17, 98–9, 108–9
in United States 121
Prudential 130–1
public insurance societies 4–5, 115
Puth, R. C. 265
‘quasi-war’ with France (1796/1800) 134–5
Rand Mutual 11, 11n.55
random-effect models 258
Rao, Hayagreeva 16
Raynes, Harold E. 54
redistributive schemes 9
Reglamento General de Mutualismo Laboral
regulation 207

reinsurance
in Germany 6
mandatory state participation in numerous
countries 12
and self-insurance 69
in Sweden 107, 109, 251, 253–4

risk
management 69
nature of 2–3
Roman Empire 8
Royal Exchange Assurance 3, 47, 50, 151
Royal Insurance Company (Liverpool) 158
rural mutual insurance unions 4
Russia 6, 12
SA Mutual (Old Mutual) 157–9, 165–6, 168
Sage, Lionel 63, 65
Sailing Ship Mutual Insurance Association 63
Samarbete (Co-operation) 108
Samvirke 110
Sardá, Joan 287, 287n.13
Scottish Equitable Mutual Life Assurance
Society 156–7
Securities Exchange Commission 268
Seguros de Mexico (life insurance
company) 12, 12n.57
self-insurance 6, 69
Serifsoy, Baris 285
Shibusawa, Ei-ichi 44–5
Shipowners’ Mutual Protection

Society 60n.52
Short, Benjamin 187
Sistema Mapfre 292–3
Skandia group 95, 105, 111, 111n.41, 243,
246, 251
Skåne 95, 243, 251
Skånska Brand 107
Skuld 64
slaves 129
Smith, George David 265
Society for Equitable Insurances on Lives and
Survivorships 9
Somerset, Lord Charles 147
Sommer, D. W. 18n.87
South Africa
colonial market development 22, 24–5,
150–5, 171
conclusions 167–8
early insurance history 145–50
economic transformation 161–3, 164–7
people awakening 155–61, 160
and the Rand Mutual 11, 11n.55
South African Commercial Advertiser 155
South African Fire and Life Assurance
Company 152–5, 159
South African Mutual Life Assurance
Company 149, 156–7, 162
South African War (1899–1902) 146
South Sea Bubble 49
Southern Life Association 149, 162, 165–6

Spain 7–8, 14
Spanish Civil War 197


Index
Spanish mutuals
adapting to institutional change 209–12
creation of a framework for 197, 198–200,
199–205, 201n.17, 203–5
development of 194–7, 194n.2
during the Franco period 22, 205–9, 212–13
introduction 193–4
and Mapfre 286–99, 288n.17
Standard Oil Company 68
Starks, Laura T. 17, 17n.82
state
disability, old age insurance 11
insurance institutions 12–13
Steam Navigation Act (1846) 60
Steamship Mutual Underwriting
Association 24, 47
Steamship Mutuals (SSMs) 63–5, 67
Stephen, J. M. 162
Stocken, Alfred 63
Streb, Jochen 11
Sun insurance 151, 175, 181
Supreme Liberty Life Insurance Company 266
Svea 95, 243, 251
Svenska Handelsbanken (bank) 104
Sveriges Privatanställdas Pensionskassa

(SPP) 250
Sweden
and inter-war property insurance 17–18,
17n.82
mutuals, see Swedish mutual insurers
and P&I clubs 65
see also Swedish life insurance
Swedish Cooperative Movement 101, 108–9
Swedish life insurance
agency theory 245–8, 246, 248–9, 250
companies either mutuals or
joint-stocks 95
conclusions 258–9
and dividends 99
external capital/organisational
convergence 250–2, 251–2
growth performance analysis 253–4,
254–5, 256, 257, 258
history of 243–4
‘Swedish model’ 102, 111
Swedish mutual insurers
case studies 106–10
conclusions 110–13
customers/owners 100–3
distribution of dividends 99–100
emergence of the modern
market 94–6, 96
introduction 6–7, 10–11, 22–3, 93–4
and life insurance 243–8, 250–4, 258–9
mutuality and legislation 96–7

need and equity principles 97–9, 98n.13

329

restructuring 104–6, 104n.29, 105
‘solidity’ principle for life insurance 97n.9
System Mapfre 299
Taisho Marine and Fire Insurance
Company 87
Teikoku Life 31, 218, 221, 223–5, 230–1,
233–6, 238
Thames and Mersey Marine Insurance
Company 59
Thule 95, 251
Tokai Life 38, 42, 229, 239–40
Tokio Marine Insurance Company 35, 68,
70–5, 82, 87, 89–91, 90n.55, 217
Tonti, Lorenzo 8
tontines 124–5, 131n.67
Transvaal 147, 161, 163, 165–7
Trebilcock, Clive 186
Trygg and Folket, see Folksam
Trygg-Hansa group 105, 112
Tunisia 7
Turkey 12
Unanimous Association of South
Shields 54–5, 54n.16
underwriters
at Mitsubishi 82
and early life insurance 9

history 2–3, 9
joint-stock companies as natural successors
to 57–8
in Philadelphia 134–5
private 49–51, 66–7
survival of private system 58–9
in US 117–18
Union Fire and Marine Insurance
Company 159
Union Fire Office 5
Union of South Africa, see South Africa
United Empire & Continental Life Assurance
Association 151
United Kingdom
average sum assured per head 165
and insurance
in Australia 173–7, 183–6
in South Africa 145–54, 156–60, 167
life insurance
before 1914 18
from 1721 9
more popular in early 1930s 9
and marine insurance 3, 21, 66–7
removal of restrictions in marine
insurance 66–7
no longer possessed the largest merchant
fleet 64
and P&I clubs 65

330

Index

United Kingdom (cont.)
pensions/allowances for state employees 8,
39n.8–9
statutory pensions in 11
United States
average sum assured per head 165
and business in South Africa 162
Civil War 10, 59, 118–19, 130,
137, 201–2
and corporate group insurance 6
deposit requirements 11, 161
expansion of merchant fleet 64
fire insurance in 119–21, 119–20, 135–6,
138
first insurance companies 3, 5–6
and guaranty funds against insurer
insolvency 19–20
and large insurer-financial groups 284
leading insurance market
before 1914 114–16
life, health, and accident insurance 128–40,
129, 129n.57, 130n.59
life insurance
before 1914 18, 18n.87
business history 265–7
more popular in early 1930s 9

marine and transport insurance in 116–18,
121, 134
mutuals in 7, 14, 119–21, 129, 132–4, 137,
156
non-life insurance markets 140–1
and P&I clubs 65
property insurance in 121
rise of mutual life insurance 9–10
state guaranty funds 15
and tontine policies 9, 230, 230n.17
United States Steel Corporation 68
Unity Fire Insurance Association 159
Uruguay 12
Valand 107
variance inflation test (VIF) 256
Vegete 107
Velarde Fuertes, Juan 207–8
Verenigde Oostindische Compagnie
(VOC) 146
Verhoef, Grietjie 22, 24–5, 171
Volksfürsorge 128
Voortrekkers 146, 148
Wakayama, Norikazu 219, 219n.4
Wakayama, Yoshikazu 30

Wald test 256
Walker, Herschel 280
Walpole, Robert 49
Wasa 107–8, 112
Watts Riots (1965) 264, 274, 281

Wawanesa Mutual Insurance
Company 24n.97
Weare, W. B. 265
Weems, R. E. 266
Whiley, James 149
Widows and Pupils’ Fund 243
Willis Faber and Partners (now Willis
Group) 72, 75, 90
Winter, Sidney G. 245
‘with-profits’ insurance policies 18
wool 146, 159, 173, 176
Wooldridge test 256
Word about the Primary Avocation to Promote
a Mutual Insurance Company, A
(Yano) 36
workers’ mutuals (Mutualidades
Laborales) 194
Workmen’s Compensation Act (1906) 61, 63,
63n.56
Workplace Accidents Act 1900 (Spain) 7
Worthington, A. 285
Wright, Robert E. 19, 138, 265
Yano, Ise 32
Yano, Saneki 32
Yano, Tsuneta
and Dai-ichi Life 21, 24, 224–5, 240
early life and career 32–5
and the Insurance Business Act 35–6
and international insurance
management 36–7

introduction 29–30
and Kyosai Life 220–1
sagacity of his approach 39
unique as a top manager 43–6
Yasuda Zaibatsu 33
Yasuda, Zenjiro 33–5, 220
Yoneyama, Takau 21, 24
Yu, Tong 285
Zaibatsu 293
Zanjani, G. 9, 11
ZAR 161, 163, 165, 167
Zelizer, Viviana A. 132, 265
Zuid-Afrikaan 155
Zurich 287
Zwierlein, Cornel 123