The History of Insurance

It all started with property insurance

          Everyone knows what is life insurance or property insurance, and usually knows nothing about how it works but not all, without exception, who knows the history and the reasons behind the insurance in a broad spectrum. In simple terms, insurance isCompensation to the person or business loss. There are many types of insurance to cover any situation, including auto insurance, health insurance and dental insurance, home insurance and individual insurance and pet insurance smoothly.
There is a kind of insurance on the property and became the first popular around 3000 BC in China. Wanted to Chinese merchants, as well as investors, to make sure they will profit from the goods they ship abroad. In the event of a ship lost at sea or pirated, a partner will give the insurance money from the owners of the ship and cargo.
To pay for loss of business will be sold into slavery to pay when the insured debt. This was a collection of mutual benefit, since a merchant can not pay for the goods lost or even to buy a ship someone did not invest. And can become very rich business and even have a fleet of ships if it was successful.
Of insurance on the property, of course, were not available only in China. In Babylon, traders, investors and developed a system of contracts that the supplier of money to trade and agreed to cancel the loan if the trader robbed of his goods. Trader who pays an additional amount of money borrowed for these immunizations in addition to the usual interest.As for the lender, the collection of such premiums from many traders that they are achievable for him to absorb a few losses. This understanding has proved to be more attractive and reasonable than the one earlier. Later been extended this series of contracts to take into account the provisions of the family home and covered up the killing, the beginning of life insurance.
News from the rapid increase is a good idea. Soon the Phoenicians, Greeks, Romans and Hindus and also similar concepts in place. And each culture is the same as stimulating the evolution of the laws. For example, the Romans had to "give up" law, which states that if the crew had to ease the ship by throwing objects and then the sea will be divided between the loss of trade and the insured.
In fact, this law still exists today as part of the special laws for protecting against losses at sea and the very word "insurance" is derived from the Latin word which means "security. "

          It derives also other forms of expression for the insurance of old practices of trade in the Mediterranean Sea. Origin of the word "guarantor", for example, Italian, from the old system of signing contracts in the marine insurance.
Signed these businessmen who decided to participate in the profit or loss on a particular project names down the contract, and write at the same time the amount of risk borne by each. It is possible that "policy"is also of Italian origin - derived from "the promise" - and despite the claims of other sources of this word.
But things have changed dramatically in the 17 century. In 1666 in the Great Fire of London and finally forced to the need for insurance against fire. The primitive means to fight fires today is virtually powerless against the flames of hunger, which is restricted from flying through the narrow streets to reduce housing forests to ashes. Burned in the Great Fire of London for four days and nights.It had destroyed 436 acres and devour 13 200 houses and churches 89 (including the Cathedral of St. Paul), a custom home, to swap property and dozens of other public buildings. Only six people were decomposed in the flames, but hundreds died of trauma and experience.

And can be returned to enrich the insurance as we know it today in the wake of that tragedy and a call Nicholas Barbon. Very shaken by the huge fire, Barbon immediately open office "to secure the buildings." This project was successful it seems, because in 1680 he founded the company in England, the traditional first fire insurance company, and the Office of the fire, to ensure that the brick and frame houses.
It was established the first fire insurance mutual friendship in 1696 with the cumbersome name of "Contributorship to secure the houses and rooms, or rooms of the loss contributions of friendly fire. " This company has been very successful, eventually being Absorbed by the trading company of Union Insurance Co., Ltd., London in 1905. In 1704 the goods of the Lombard house fire insurancefor launch domestic, commercial, In 1762 was formed the first insurance company to the common life, and just to London.
Of the secretarial and brief history we can see how it came to be insurance.

          Fortunately for us we no longer have to sell ourselves in slavery if the stolen car. However, we can beConfident that we will be compensated for the loss of us. Without people wanting to secure reserves and the great tragedies throughout history and we may not have insurance as we know it today, and loss of peace of mind that would be.