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Paper short abstract

This study analyses changes in the socio-economic profiles of entrepreneurs in Japan’s prewar life insurance industry in response to the industry’s evolution and to nationwide socio-economic and political developments.

Paper long abstract

Entrepreneurship is a defining feature of early industry formation, yet little is known about its changing role and character as an industry evolves. Using Japan’s prewar life insurance industry as a historical case, this study analyzes changes in the profiles of 83 entrepreneurs involved in the establishment of 56 life insurance companies covering the period from the founding of the first company in 1881 to the establishment of the last prewar life insurer in 1921. The profiles summarize family background, educational achievement, prior overseas visits and their respective purpose, prior business experience by industry and by function, and prior services in the government, national or local politics, and the military. Changes are measured as differences in entrepreneurial profiles between the pioneering phase (1881-1900), when the viability of the business model and the trustworthiness of life insurers had yet to be proven while the industry’s institutional infrastructure was under development, and the subsequent maturing phase (1901-1921), when these uncertainties had largely been resolved and most of the institutional infrastructure, such as an industry-specific regulatory framework, mortality tables and standardized medical examinations, had largely been built. The statistical analysis reveals significant differences as well as important similarities in the entrepreneurial profiles between the two phases. The differences can be related to the evolution of the industry and developments in the wider socio-economic and political environment. The similarities reflect the nature of life insurance as a high-trust business closely linked to social policy.

Keywords: Entrepreneurship, industry evolution, life insurance, prewar Japan, business history