BRIEF HISTORY OF INSURANCE

Insurance is a means provided for protection from financial loss. It is generally in the form of a contract, represented by policy under which one receive financial protection or a reimbursement of losses from the insurance firm. There are different types of insurances like life insurance, health insurance, automobile insurance, home insurance, cargo insurance, long-term care insurance etc.

As early as 4000-3000 BC so called  bottomry contracts were known to merchants of Babylon. The same bottomry was practiced by Hindus in 600 BC  and in ancient Greece in 4th century BC. Under the bottomry contract, loans were granted to merchants with the provision that if the shipment was lost at sea the loan did not have to be repaid. The interest on the loan covered the insurance risk. However marine insurance was well developed by the 15th century.

The first American insurance company was formed by Benjamin Franklin in 1752. By 1820 there were 17 insurance companies in New York alone. The first Indian life insurance company was Bombay Mutual Life Assurance Society started in 1870. By 1907 a good number of insurance companies came into existence in India. Top 5 countries in the world by life and non-life direct premiums written by 2019 are: USA, China, Japan, UK and France.

Major claim settlements are:
Marine cargo from London to Germany lost in the sea alongwith ship crew in 1799 paid $18 million plus $27 million ( in today's rate a whopping $450 million)

China earth quake, $1 billion.
Haiti hurricane in North America in 2008, $20.5 billion.
Tsunami in Japan in 2011, $35 billion.

Actor Rowan Atkinson's car accident claim in 2011 is the highest auto claim settled by an insurance company - $1,133,000.

According to Guinness Book of World Records the largest life insurance policy was bought by an unnamed California tech in 2014 for $201 million.

Top insurance companies in the world are:
Berkshire Hathaway
Ping An Insurance
Allianz SE
AXA SA
Prudential PLC
Aviva PLC

KV George
kvgeorgein@gmail.com

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