History Of Insurance

Insurance is one of the oldest financial tools, evolving over thousands of years from early risk-sharing agreements to the comprehensive cover options we use today. This timeline outlines how insurance developed into a vital part of modern financial planning.

Ancient Origins (c. 3000 BCE – 1000 CE)

• Babylonian traders: Used early loan agreements where repayment was waived if goods were lost during transport.
• Greek and Roman guilds: Citizens pooled money to cover funeral expenses and help families recover from loss.

Medieval to Early Modern Period (1000–1600s)

• Marine trade insurance: Italian merchants created structured agreements to cover cargo losses.
• General average principle: Ensured shared responsibility among traders for goods lost at sea.

Insurance Becomes Formalised (1600s–1700s)

• Fire insurance: Developed after major urban fires, offering protection for homes and businesses.
• Emergence of insurance marketplaces: Coffee houses became hubs for marine insurance contracts.
• Life insurance foundations: Early mutual societies introduced policies based on life expectancy.

Industrial Growth and Expansion (1700s–1900s)

• Fire insurance expands: Adopted globally to protect property owners and cities.
• Automobile and aviation insurance: Introduced to support technological advancements and new risks.
• Specialised policies: Health, personal liability, and travel insurance grew in popularity.

The Modern Insurance Era (1900s–Today)

• Regulation and compliance: Governments introduced rules to protect consumers and ensure insurer solvency.
• Actuarial science advancements: Data and statistics improved risk evaluation and policy pricing.
• Digital transformation: Online quotes, mobile apps, and AI-driven underwriting revolutionised how consumers access insurance.