As an Insurance agent serving Arizona Communities, I have long been fascinated by just how long my industry has thrived! We all too often think of it as a “modern convenience; ” however, today I discovered a great overview of the history of insurance today, and it is one of those where I find it best to copy/paste and give full attribution to:
LOP Solutions, LLC.
Reno, Nevada 89509
Ever wonder where insurance came from? It seems it’s always been around. The roots can be traced back to Babylonian times, around 2100 B.C. The Code of Hammurabi was the first insurance policy. It was paid by the traders in the form of a loan to guard against the perils of transportation (robbery, bad weather and breakdowns) and guarantee the safe arrival of their goods by caravan.
As history progressed insurance expanded beyond transportation. The Romans were the first to buy insurance to cover funeral costs. The very first actual insurance contract was signed in Genoa in 1347. Prior to the formation of corporations devoted solely to the business of writing insurance, policies were signed by a number of individuals, each of whom wrote his name and the amount of risk he was assuming underneath the insurance proposal, hence the term underwriter.
Then in London, in 1688, the first insurance company was formed. It got its start at Lloyd’s Coffee House, a place where merchants, ship-owners, and underwriters met to do business. Lloyd’s grew into the first modern insurance company, Lloyd’s of London.
As trade grew – so did insurance companies. In the 17th and 18th centuries, British commerce was rapidly growing the risks increased. Businessmen began increasingly purchasing insurance to protect them from unforeseen losses. Next thing you know farmers wanted crop insurance. People wanted deposit insurance at their banks. Travelers wanted trip insurance.
I hope you enjoyed this s much as I did. We both agree that insurance is certainly more the norm today, but you may still have questions about how much, or what you need. Let’s have that conversation! eMail me or post your questions here.