History of Insurance. Early Days. From early times, communities have looked for ways to pool resources in order to protect individuals from unexpected losses. The history of insurance traces the development of the modern business of insurance against .. HM Treasury. Archived from the original (PDF) on Against this background, the history of insurance focuses on the development of ronaldweinland.info
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Historical Background of Life Insurance Business in India and in the context of .. FIO is part. 4ronaldweinland.info of Insurance. ORIGINS OF RISK. At the dawn of modern human history, widely dispersed groups of tightly knit kin, whom we today refer to collectively as hunter - . 2 Swiss Re A History of Insurance. Foreword. Dear readers. This year Swiss Re celebrates its th anniversary. Since the time of our foundation in the.
Log out of ReadCube. Abstract From early times, communities have looked for ways to pool resources in order to protect individuals from unexpected losses. One of the most common and long lasting arrangements, originating in the Mediterranean area and dating from before the Christian era, was a loan, with a high rate of interest, secured on the voyage of a ship, the loan being repayable only if the voyage were completed successfully. In English, this became known as bottomry, referring to the bottom of the ship. There is evidence that the Romans practiced an early form of life insurance and bought as well as sold annuities.
See the history of insurance in Nigeria right here. Insurance is a service that allows you, your family and colleagues have peace and confidence in the future. Currently, there are various kinds of insurance — life, property, health, goods, enterprises etc. But how did all this begin to function? What contributed to the appearance of insurance companies in Nigeria?
Follow the evolution of insurance in Nigeria below. Development of insurance took place long before Nigeria became the independent country. Since that period, Nigeria has overcome a long path filled with different changes. As years went by, the evolution of insurance became more and more visible, though, in comparison with other world countries, insurance in Nigeria is developed quite poorly. The reasons for this come not only from insurance services but also from economic sector.
Evolution of insurance: Beginning The prerequisites of the current situation with insurance were born in the colonial period. Until the s, the leading role in the Nigerian insurance market was played by European companies.
They insured goods sent to centers of the empire.
After colonies gained political independence, African branches of these companies were nationalized, the government tried to form their own insurance markets to avoid currency outflows abroad. And they managed to do this with the support of the UN.
In the s, UNCTAD officially recognized the importance of insurance in the newly liberated countries to accelerate their economic development and free trade.
It also facilitated the adoption of a number of bills by the parliaments of African countries formalizing insurance relations. In 22 countries, including Nigeria, the state monopoly on insurance was introduced.
In particular, everything started from the appearance of the Nigerian department of insurance, which occurred after the report by The J.
Obande Commission. Appearance of reinsurance companies: State ownership At the same time, some reinsurance companies appeared in Africa. The shares of these organizations were fully owned by the state. Special courts were set up to solve the disputes of marine insurance like in Genoa, insurance regulation passed to impose fine, on who did not obey the Church's prohibitions of usury Sea loans, Commenda in In , Barcelona ordinance issued, making it mandatory for traders to turn to formal courts in case of insurance disputes.
Separate insurance contracts i. The first known insurance contract dates from Genoa in , and in the next century maritime insurance developed widely and premiums were intuitively varied with risks.
These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became more sophisticated in Enlightenment era Europe , and specialized varieties developed. Some forms of insurance developed in London in the early decades of the 17th century.
For example, the will of the English colonist Robert Hayman mentioned two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Hamburger Feuerkasse English: Hamburg Fire Office is the first officially established fire insurance company in the world,  and the oldest existing insurance enterprise available to the public, having started in Property insurance as we know it today can be traced to the Great Fire of London , which in devoured more than 13, houses.
The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren 's inclusion of a site for 'the Insurance Office' in his new plan for London in ".
Initially, 5, homes were insured by his Insurance Office. In the wake of this first successful venture, many similar companies were founded in the following decades.
Initially, each company employed its own fire department to prevent and minimize the damage from conflagrations on properties insured by them. They also began to issue ' Fire insurance marks ' to their customers. These would be displayed prominently above the main door of the property and allowed the insurance company to positively identify properties that had taken out insurance with them.
This system was soon exposed as terribly flawed, as rival brigades often ignored burning buildings once they discovered that it had no insurance policy with their company. Eventually, a solution was agreed upon in which all the insurance companies would supply money and equipment to a municipal authority charged with stationing fire prevention assets and firefighters equally around the city to respond to all fires.
This did not solve the problem entirely, as the brigades still tended to favor saving insured buildings to those without any insurance at all. In Colonial America , the first insurance company that underwrote fire insurance was formed in Charles Town modern-day Charleston , South Carolina in Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly Property insurance to spread the risk of loss from fire, in the form of perpetual insurance.
Franklin's company made contributions toward fire prevention. Not only did his company warn against certain fire hazards, but it also refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. At the same time, the first insurance schemes for the underwriting of business ventures became available. By the end of the seventeenth century, London's growing importance as a centre for trade was increasing demand for marine insurance.
It soon became a popular haunt for ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, and those willing to underwrite such ventures. These informal beginnings led to the establishment of the insurance market Lloyd's of London and several related shipping and insurance businesses.
In , long after Lloyd's death in , the participating members of the insurance arrangement formed a committee and moved to the Royal Exchange on Cornhill as the Society of Lloyd's.
The first life insurance policies were taken out in the early 18th century. At the end of the year a portion of the "amicable contribution" was divided among the wives and children of deceased members and it was in proportion to the amount of shares the heirs owned. Amicable Society started with members.
The first life table was written by Edmund Halley in , but it was only in the s that the necessary mathematical and statistical tools were in place for the development of modern life insurance. James Dodson , a mathematician and actuary , tried to establish a new company that issued premiums aimed at correctly offsetting the risks of long term life assurance policies, after being refused admission to the Amicable Life Assurance Society because of his advanced age.
He was unsuccessful in his attempts at procuring a charter from the government before his death in It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development"  and "the basis of modern life assurance upon which all life assurance schemes were subsequently based". Mores also specified that the chief official should be called an actuary —the earliest known reference to the position as a business concern.
The first modern actuary was William Morgan , who was appointed in and served until In the Society carried out the first actuarial valuation of liabilities and subsequently distributed the first reversionary bonus and interim bonus among its members.
Premiums were regulated according to age, and anybody could be admitted regardless of their state of health and other circumstances. The sale of life insurance in the U. Between and more than two dozen life insurance companies were started, but fewer than half a dozen survived. In the late 19th century, "accident insurance" began to become available. This operated much like modern disability insurance. It was registered as the Universal Casualty Compensation Company to:. The company was able to reach an agreement with the railway companies , whereby basic accident insurance would be sold as a package deal along with travel tickets to customers.
The company charged higher premiums for second and third class travel due to the higher risk of injury in the roofless carriages.
By the late 19th century, governments began to initiate national insurance programs against sickness and old age. Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the s. In the s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany's welfare state. His paternalistic programs won the support of German industry because its goals were to win the support of the working classes for the Empire and reduce the outflow of immigrants to America, where wages were higher but welfare did not exist.
In Britain more extensive legislation was introduced by the Liberal government, led by H. Asquith and David Lloyd George.
The National Insurance Act gave the British working classes the first contributory system of insurance against illness and unemployment. As a result, workers could take sick leave and be paid 10 shillings a week for the first 13 weeks and 5 shillings a week for the next 13 weeks. Workers also gained access to free treatment for tuberculosis, and the sick were eligible for treatment by a panel doctor.
The National Insurance Act also provided maternity benefits. Time-limited unemployment benefit was based on actuarial principles and it was planned that it would be funded by a fixed amount each from workers, employers, and taxpayers.
By , 2. This system was greatly expanded after the Second World War under the influence of the Beveridge Report , to form the first modern welfare state.
In the United States , until the passage of the Social Security Act in , the federal government did not mandate any form of insurance upon the nation as a whole. With the passage of the Act, the new program expanded the concept and acceptance of insurance as a means to achieve the individual financial security that might not otherwise be available.
That expansion experienced its first boom market immediately after the Second World War with the original VA Home Loan programs that greatly expanded the idea that affordable housing for veterans was a benefit of having served.
The mortgages that were underwritten by the federal government during this time included an insurance clause as a means of protecting the banks and lending institutions involved against avoidable losses.
During the s there was also the GI life insurance policy program that was designed to ease the burden of military losses on the civilian population and survivors. From Wikipedia, the free encyclopedia. A series on Economic history: Risk Management.
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