" Insurance is not complicated, just severely miscommunicated. "
History of Insurance
Insurance has a colourful history that dates back to ancient times, being as old as society itself.
The very first forms of insurance can be seen in 300BC - when ancient societies pooled in money to give the deceased proper burials.
In 1754BC, the Babylonian King legally ordered insurance as a law in the Code of Hammurabi, where the city had to indemnify someone for their losses should they be robbed of their property.
When people started to travel the world with sailboats, threats like pirates and bad weather were the greatest perils faced at sea. Insurance then evolved from providing support to communities to safeguarding trade interests.
The British Empire introduced a more affordable and modernized form of insurance with a dedicated maritime insurance policy to protect shipments at sea.
To limit the loss of goods, merchants would divide their items among various ships that had to cross treacherous waters. One of the first documented loss limitation methods was noted in the Code of Hammurabi, which was written around 1750 BC.
Under this method, a merchant receiving a loan would pay the lender an extra amount of money in exchange for a guarantee that the loan would be cancelled if the shipment were stolen.
The first to insure their people were the Achaemenian monarchs.
Around 600 BC, the Greeks and Romans formed the first types of life and health insurance with their benevolent societies. These societies provided care for families of deceased citizens.
Modern insurance can be traced back to the city’s Great Fire 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 was made available in the late 19th century, and it was very similar to modern disability coverage.