History of Insurance

Don't you know how the insurance concept started continue to read about that:

Insurance has been to exist in some form or other since 3000 BC. The Chinese traders, travelling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost, would be partial and shared, and not total. The Babylonian traders would agree to pay additional sums to lenders, as the price for wiriting off the loans, in case of the shipment being stolen. The inhabitation of Rhodes adopted the principle of "general average", whereby, if goods are shipped together, the owners would bear the lossses in promotion, if loss occurs, due to jettisoning during distress.(Captains of ships caught in storms, would throw away some of the cargo to reduce the weight and restore balance. Such throwing away is called jettisoning) The Greeks has started benvolent societies in the late 7 th century AD, to take care of the funeral and families of members who died. The friendly societies of England were similarly constituted. The Great Fire of London in 1666, in which more that 13000 houses were lost, gave a boost to insurance and the first fire insurance company, called the Fire Office, was started in 1680.

The origins of Insurance business as in vogue at present, is traced to the Lloyd's Coffee house in London. Traders, who used to gather in the Lloyd's coffee house in Londo, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship.

This is the history of Insurance, if you have any queries or doubts kindly leave the comments.