The history of insurance dates back thousands of years, with evidence of primitive insurance practices found in ancient civilizations.
Early Forms of Insurance
Code of Hammurabi (1750 BC): This ancient Babylonian law code introduced the concept of risk management, where merchants would pay extra for guarantees on loans taken for goods transported by ships. If the ship was stolen or damaged, the loan would be forgiven.
Ancient Greece and Rome (600 BC): The Greeks and Romans developed life and health insurance-like systems, providing care for families of deceased breadwinners.
Ancient China: Merchants would distribute goods across multiple ships to minimize losses in case one ship was attacked or sank.
Development of Modern Insurance
Marine Insurance (12th century): Italy pioneered marine insurance, which spread to England in the 13th and 14th centuries. The Marine Insurance Act of 1906 regulated this type of insurance.
Fire Insurance (1666): After the Great Fire of London, Nicholas Barbon founded the first fire insurance company to protect homeowners from fire damage.
Life Insurance (18th century): The first life insurance companies emerged in the 18th century, offering protection for families in case of the breadwinner’s death.
Evolution of Insurance
Industrial Revolution: As industries grew, new insurance products emerged to protect against workplace accidents, property damage, and other risks.
Globalization: Insurance companies expanded globally, offering a wide range of products to individuals and businesses.
Digital Age: Today, insurance companies use technology to offer customized policies, process claims efficiently, and provide better customer service.
The history of insurance dates back to ancient civilizations, with evidence of primitive insurance practices found in:
- Code of Hammurabi (1750 BC): Risk management concepts.
- Ancient Greece and Rome: Life and health insurance-like systems.
- Ancient China: Merchants distributed goods to minimize losses.
Modern insurance developed in:
- Italy (12th century): Marine insurance.
- England (1666): Fire insurance after the Great Fire of London.
- 18th century: Life insurance emerged.
Insurance has evolved through the Industrial Revolution, globalization, and the digital age, offering a wide range of products and services.