Abstract
The intent of this paper is to unveil the reason of the growing insurance business of major Consumer Co-operatives, “Seikyo Kyosai”, from the perspective of their business models. They have a distinctive scheme of direct marketing based on the spirit of mutual help to induce their members to buy lower-priced and simple products. They also have a cost advantage of operation over insurance companies through economies of scale, scope and relationship. To adapt environmental change and establish sustainable advantages, commitment to community and involvement of members will be required increasingly as a nonprofit and co-operative organization.
