Evolution of Insurance

Evolution of Insurance Ancient Insurance Policies Among the earliest known insurance systems appears A LVA イ A ト H ( ASUV へ イ AH HyT ASLUVA イト H T in the Code of Hammurabi in 1780 B.C. IILI 「 N 、 DA 下 4. H . 1N , TH 下 4. HAA This system helped merchants sailing the products across the Mediterranean; lenders would accept an extra fee on debts in return for the promise that the debt would be cancelled should the shipment be lost at sea. The Greeks and Romans both had early forms of life insurance, with the establishment of benevolent societies, guilds that would help pay funeral expenses for members and care for their families. The Development of Modern Insurance The first insurances policies, as we understand them today, appeared in Genoa in 1347. The most important aspect of these policies was the separation of the fee paid for insurance from any other contract, such as one for a loan. By the 17th Century, insurance policies were becoming more common and more sophisticated. Louis Pascal's mathematical work led to the creation of the first actuary tables for assessing risk, allowing underwriting of insurance policies to become more sophisticated. In a café known as Lloyd's, located in London, insurance policies were bought, sold, and underwritten – this was the beginning of Lloyd's of London. Lloyd's became a center for insurance underwriting aimed at merchants sailing with shipments of goods around 1688. Following the immense fires in London in 1666, fire insurance for homes was developed and quickly grew in popularity. Business insurance policies were becoming common by the end of the 17th Century, and in the early 18th Century the first life insurance policies were written. By the end of the 18th Century life insurance was becoming more complex, as companies were able to develop systems of calculating appropriate premiums based on risk level. Known today as disability insurance, accident insurance first appeared in the 19th Century in response to the unfortunate number of railway accidents. Insurance in North America Benjamin Franklin founded America's oldest insurance company in 1752. The company sold fire insurance policies. Insurance quickly spread across North America, with more types of policies becoming available. Canada also saw a founding father as a father of the insurance industry. Sir John A. MacDonald,Canada's first Prime Minister, was President of The Dominion of Canada General Insurance Company, doing business since 1887. Life Insurance in Canada developed around the same time, with the Sun Life Compan beginning operations in 1871. The History of Auto Insurance The first auto insurance policy was sold in Ohio in 1897, early in the history of the car. Fire and theft coverage first appeared in 1902, and by 1912 policies similar to those we use today were being formed. Recent Developments in Insurance The most recent development to strongly affect the insurance industry has been the advent of the Internet. Thanks to online systems, consumers purchase insurance in new and simpler ways.