History of the insurance industry

History of the insurance industry,insurance,insurance industry,insurance industry overview,insurance (industry),car insurance,life insurance,health insurance,insurance industry explained,insurance agent career,insurance claim,insurance marketing,insurance sector in india,insurance career,blockchain for insurance industry,auto insurance,how does insurance work,types of insurance,leveraging customer analytics in insurance industry,insurance investing

History of the insurance industry

It is said that the first man used his nails covered with brushes as a means of protection. The Stone Age man found the edge of the stone as a better idea. Little by little, he developed weapons. When he moved north into colder regions, he had to find a way to protect himself from the bitter cold. He took refuge in the cave. In addition, he had to find ways to protect himself from fires, floods, and loss of life. Slowly, as their needs increased, so did their personal belongings. He had to find methods to protect his property and his life from loss. He was willing to make some kind of sacrifice to keep him safe in this way, was always looking for protection from various risks to his life and continued his search for safety. Insurance is one of the most effective protections found by humans to cope with risks, against uncertainty. Although the idea of protection has gained ground in the recent past, the origin was found almost 6000 years ago.


The Egyptian sovereign or Pharaoh once dreamed that he was standing on the bank of the Nile and saw seven bright and tat cows coming out of the river followed by seven lean and hungry cows. The latter devoured the former. Disturbed, he sends Joseph to interpret the dream. Joseph saw the seven fat cows which represented seven years of good harvests and the seven lean cows announced seven years of famine. He advised that one-fifth of the harvest of each prosperous year be used during the famine years. This biblical story is also found in Islamic scriptures, but it is associated with the name of the prophet Yusuf.

Many laypeople associate life insurance more with life than with property. Your idea of property insurance is quite vague. However, it is said that property insurance was the first to start, let's go back 6000 years back on the Babylonian scene. Although the city has a solid trading system, its territory is surrounded by immense desert areas. Merchants traveling by land were exposed to the risk of theft. This threat of theft was widespread at the time. Likewise, ships sailing on the high seas also had to fly. This type of theft is called hacking. In addition to the risk of theft, the ships were completely taken by the winds. When ships were attacked by pirates or destroyed by the winds, the goods never reached their destination. Many merchants who had borrowed money for their business were struggling to lose their assets, the merchant could not pay his debt. He was then taken as a slave with his entire family by the person who had granted the loan.


Bottomry's practice encouraged the merchant to enter the seas, to take risks against which some help was available. As traders could take advantage of this system, young people with an adventurous spirit were more willing to undertake dangerous voyages at sea. This system of protection granted by the lender on ship security is a very important innovative revolution in the history of insurance. Over time, the idea spread even more. Loans were made to goods transported by ship and this practice was called "antidementia". It should be recalled that the term "Bottomry" refers to loans made to the ship, while "Respondentia" refers to advances on "goods" (cargo) carried. by boat for commercial purposes.


The great merchants of the time were the Phoenicians. They have acquired commercial links with Asia, Africa and even with remote regions of Europe. With these Phoenicians, the Greeks began the practice of Bottomry around the year 900 BC. C. The traces of maritime insurance can be found at the beginning of the year 215. C. when the suppliers of arms and foodstuffs have declared their willingness to continue transporting the materials only if the government obtains full compensation in the event of the total loss of the vessel and the cargo.

The first known insurance contract was put in place in Genoa on 13.10.1347. In 1369, maritime insurance was legally checked in Genoa. Sailors and travelers were insured against the risk of being taken prisoner by pirates and, subsequently, also against the risk of death.

In Italy, the practice of the fund is very widespread at the beginning of the 13th century. Although no documents could be found, it had probably been used continuously in this country for centuries before, given that Italy had been commercially active since at least the fifth century.

Post a Comment