How Insurance Began: 3000 Years of History

Insurance has a history dating back to the ancient world. over the centuries, it has developed into a modern business of protecting people from various risks. the industry has been profitable for many years and has been an important aspect of long-term public and private finance.

In the ancient world, the earliest forms of insurance were recorded by Babylonian and Chinese merchants. to limit the loss of goods, merchants divided their goods among several ships that had to cross treacherous waters. One of the earliest documented loss-limiting methods was seen in the Code of Hammurabi, which was written around 1750 BC. Under this method, a merchant receiving a loan would pay the lender an additional amount of money in return for a guarantee that the loan would be repaid if the shipment were stolen. the first to insure their people were the Achaemenid monarchs, and insurance records were filed with notaries. insurance for gifts of substantial value was also noted. these gifts were given to the monarchs. By recording their gifts in a registry, donors would receive help from a monarch in proving the existence of the gift if they were in trouble.

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As the ancient world evolved, maritime loans emerged with rates based on favorable seasons for travel. Around 600 BC, the Greeks and Romans formed the first types of life and health insurance with their charities. these societies provided care for the families of deceased citizens. such societies continued for centuries in many different areas of the world and included funerary rituals. In the 12th century in Anatolia, a type of state insurance was introduced. if merchants were robbed in the area, the state treasury would reimburse them for their losses.

Independent insurance policies that were not tied to contracts or loans appeared in Genoa in the 14th century. This is where the first documented insurance policy came from in 1347. In the following century, independent marine insurance was formed. With this type of insurance, premiums varied based on unique risks. however, the separation of insurance from contracts and loans was a major change that would influence insurance for the rest of time.

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the first printed book on the subject of insurance was written by pedro de santarém, and the literature was published in 1552. when the renaissance ended in europe, insurance evolved into a much more sophisticated form of protection with several varieties of insurance. coverage. Until the late 17th century, many areas were still dominated by friendship societies that raised money to pay for medical expenses and funerals. However, the end of the 17th century ushered in a rapid expansion of London’s importance in the world of commerce. this also increased the need for cargo insurance. London became a hub for companies or individuals who were willing to underwrite cargo ship companies and merchants. Lloyd’s of London, one of London’s leading insurers, remains a major insurance company in the city.

Modern insurance dates back to the Great Fire of the City of London, which occurred in 1666. After it destroyed more than 30,000 homes, a man named Nicholas Barbon started a building insurance business. he later introduced the city’s first fire insurance company. accident insurance became available in the late 19th century and was very similar to modern disability coverage.

in usa uu. history, the first insurance company was based in south carolina and opened in 1732 to offer fire coverage. Benjamin Franklin founded a company in the 1750s that collected contributions to prevent disastrous fires from destroying buildings. As the 19th century came and went, insurance companies evolved to include life insurance and various other forms of coverage. No type of insurance was required in the United States until the 1930s. At that time, the government created Social Security. In the 1940s, gi insurance emerged. helped ease the financial hardships of women whose husbands died while fighting in World War II. It wasn’t until the 1980s that the need for car insurance grew enough that steps were taken to make it mandatory. Although insurance is an established business, it is still changing and will change in the future to meet the changing needs of consumers.

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