How Did Insurance Begin

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The word insurance refers to any contract where a person pays another person or business to insure the safety, but to be more precise, pay for the replacement of any such personal property if said property is lost, destroyed, or damaged in some other way other then the neglect or purposeful destruction of the owner of said property.  There is insurance for just about anything, insurance is generally divided into four areas; vehicle, property, health, and life insurance.

The imbursement sum usually goes to the agreed beneficiaries in the result of the policy holder’s death.  The life insurance beneficiaries are usually predetermined when the insurance is purchased but can be altered by the policy holder at any time before his/hers death.   The acknowledged sum is usually at least one hundred thousand dollars for your average plan.  The amount can be increased but the premiums also increase.  Another way to increase the sum is to have several life insurance policies for one policy holder.

The earliest known form of a true form of a contractual insurance agreement came as early as 3 or 2 millennia B.C.  These simple agreements stated that a merchant, trader or transporter of goods would guarantee the safety of said cargo or shipment.  If the goods were lost, the transporter of said goods would pay either the sender or receiver for the loss or both.  Other insurance contracts were simply a fee paid by the carrier so that of the goods were lost then the fee would cover said loss of goods.  These agreements were usually done by a verbal agreement, but they were later back up by laws etched in stone and papyrus. 

As human society became more modern, many traders would hire retired soldiers, i.e. mercenaries, to help shepherd their goods from place to place.  These men could in some ways be called the first security guards of human society.  But it was hazardous and difficult work, but for the soldiers of fortune of that time it was some of the best work one could get.

Now in the modern age insurance is now a necessity for a normal life in every nation on Earth.  Insurance now covers Life, property, health, and even liability from lawsuits.  The insurance commodity is now a multi-billion dollar business.  The first known insurance business was started after the Great London Fire in 1666. The fire destroyed 13,200 houses. After this tragedy, Nicholas Barbon opened an office to insure buildings. In 1680, he established England’s first fire insurance company, “The Fire Office,” to insure brick and frame homes.

In the 21st century all insurance companies sell some form of life insurance.  It is the number one form of insurance purchased globally.  Much of it is sold to people after they have children in hopes that in the event of a premature or unexpected death the sum paid to the survivors will be able to use the money to bury their loved ones and support them financially.  A new form of life insurance states that if the policy holder dies not only will a lump sum be given to the beneficiaries but it also states that the insurer will pay off all expenses for said death including paying off the mortgage of the policy holder.  This has become a very popular form of insurance for baby boomers.

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