Spanish Influenza and Life Insurance Buying Behavior in Japan:The Implications of Rising Mortality Rates

Abstract

This empirical study examines the changes in life insurance buying behavior caused by the Spanish influenza pandemic in Japan. We use panel data from the 47 Japanese prefectures during the years 1914-1922 to perform a regression analysis. By employing dummy variables, we demonstrate, that the Spanish influenza outbreak prompted life insurance buying behavior in 1919. In addition, a separate regression analysis using differences in mortality rates provides a glimpse at how social stability is the foundation of the life insurance business.