Crisis by interrupt of the Ministry of Finance
Office of Kyosairen Hokkaido (from “Five decades History of JA Kyosairen Hokkaido”)
On 13 June 1948, at the second annex hall of prefectural nogyokai (agricultural institution) of Hokkaido in Sapporo, the founders meeting of Kyosairen Hokkaido (Prefectural Mutual Insurance Federation of Hokkaido of Agricultural Cooperatives) was held. On 28th, the Establishment General Assembly was held in central auditorium of Hokkaido University, gathering 65 nokyo (agricultural cooperatives). Kyosairen Hokkaido was officially established.
Establishment General Assembly held in Hokkaido University (from “Five decades History of JA Kyosairen Hokkaido”)
In the Establishment General Assembly, director election had difficulties. At the time, there were people to regard kyosai (mutual insurance) as dubious thing. People hesitated becoming director of the federation. Shigeyoshi Okuno of prefectural nogyokai (agricultural institution) of Hokkaido ran around the Hokkaido island. Responding to his efforts, Hideo Kuromatsu gave him informal consent to become chairman of the federation. In addition, Taroshi Higashide also gave him informal consent to become senior managing director of the federation. Okuno himself was appointed to sanji (associate director) of the federation.
Hideo Kuromatsu, who was appointed to chairman of Kyosairen Hokkaido (Prefectural Mutual Insurance Federation of Hokkaido of Agricultural Cooperatives) (from “Five decades History of JA Kyosairen Hokkaido”)
Although Kyosairen Hokkaido was established, there was no person with the wisdom of kyosai (mutual insurance) business (insurance) in it. Okuno asked to lower his head to Naofumi Takagi, technical staff of population problem research laboratory of the Ministry of Health and Welfare, saying “Please teach us about kyosai (mutual insurance) business.” Takagi gladly accepted. Takagi patiently taught to staff of Kyosairen Hokkaido who didn’t know even elements of insurance. Among overlaying the day, staff also began to master basic knowledge.
Although life kyosai (mutual insurance) started, number of subscribers was not growing easily. Okuno distributed the pamphlet “Overview of the kyosai (mutual insurance) business,” and announced on the rural target program of radio broadcasting of NHK.
“Overview” mentioned as follows; “Regarding the building such as houses and warehouses that farmers own, there was no choice but to join the postal insurance of the government or to join company fire insurance. It is often seen the lack of the money to buy the materials and fertilizer needed for farming. Therefore, we would like to do new business similar to insurance by newly established nokyo. Because it is heavy burden for only one cooperatives to do this, the prefectural federation constituted by the local-level cooperatives would share gathered burden. Collected funds shall be returned to rural area again and used for the facilities and business to increase the agricultural productivity.”
His claim was not easily understood by the farmers. The farmers had distrust of the “insurance”. At that time, staff of nokyo had also used to sell commercial insurance products as the agency of the insurance company. So to speak, the cooperatives were selling rival’s products in the same shelf. There was no reason to be able to grow the business.
In order to improve the situation, Kyosairen Hokkaido introduced “kyosai (mutual insurance) dissemination staff system”. The federation hired insurance sales experienced staff as part-time worker, so as to promote the kyosai (mutual insurance) business. When the system started, repulsion was intense. The local paper wrote, “Recently, there are those who are selling life kyosai (mutual insurance) by the name of the staff of nokyo.” On the other hand, there was the person who expressed understanding to kyosai (mutual insurance) business. The person was Shizuo Akiba, president of nokyo Memanbetsu.
Akiba proposed, “How about asking issuing the letter of introduction written by governor of Abashiri local office?” Dissemination staff used the copy of the letter of introduction as identification. The idea was brilliantly effective. Dissemination staff was able to act without being suspicious. This “kyosai (mutual insurance) dissemination staff system” was later renamed as “kyosai (mutual insurance) promotion staff.” Now, nokyo hiring full-time staff as ” kyosai (mutual insurance) promotion staff” can receive subsidy form Kyosairen.
“Mutual aid of farmers” became solution
After that, Bunshiro Okamura, president of Prefectural Federation of Hokkaido of Agricultural Cooperatives, received a letter by the name of bank director of the Ministry of Finance. “I’ve heard that your federation are doing the life insurance business. Is that true? If it were true, there would be a suspicion of quasi-insurance and conflict with the Insurance Business Law.”
Okamura sends a reply and answered, “We don’t run life insurance business based on the Insurance Business Law, but we are doing kyosai (mutual insurance) business based on nokyo law.” The results of the survey might have caused possibility to deny kyosai (mutual insurance) business by nokyo. It was the largest pinch of Kyosairen Hokkaido.
In August 1949, the Ministry of Finance dispatched two staff. Okuno explained to them sincerely. Toshiyuki Yamamoto, one of them, reported as follows; “Hoken (commercial insurance) is intended for unspecified people. In contrast, kyosai (mutual insurance) is intended for limited people. Hoken (commercial insurance) needs constructing organization having purpose. In contrast, kyosai (mutual insurance) is one of welfare facility for the members of already existing organization. It is premature to distinguish hoken (commercial insurance) or kyosai (mutual insurance) by regarding whether insurance technology is used or not. ” He concluded, “We can’t regard kyosai (mutual insurance) as hoken (commercial insurance).”
In addition, he stated as follows. “Based on examination, Kyosairen Hokkaido does not do doubtful business. On the contrary, its kyosai (mutual insurance) is doing what commercial insurance entity should aim naturally.”
Owing to explanation by Okuno, kyosai (mutual insurance) was able to pass the regulations of the Ministry of Finance.
Reference = National Mutual Insurance Federation of Agricultural Cooperatives ed. “Five decades history of JA insurance” and “Evolution History of Agricultural Cooperatives Mutual Insurance” the Federation, Prefectural Mutual Insurance Federation of Hokkaido of Agricultural Cooperatives “Two decades history of Kyosairen Hokkaido” and “Early days story of Kyosairen Hokkaido” the Federation, Taiichi Kurokawa “A path in the desert, 50 years of medical care and mutual insurance movement,” Ienohikarikyokai