Great lessons you can learn from the history of insurance.

Great lessons you can learn from the history of insurance.

The historical emergence of the idea of insurance and the difference of scientists and historians in the first place appeared:

The idea of insurance has passed through a number of different stages and conditions.
Some researchers believe that the idea of insurance existed and worked in the tenth century BC. The first public loss system was issued in Rhodes in 916 BC, where it distributed the damage caused by the dumping of part of the ship’s cargo into the sea to reduce its load on the cargo holders.

 

Another group of scientists believes that the Roman Empire was the first to invent the idea of insurance, by requiring arms dealers to send their arms by sea; to supply the empire’s forces with the state guaranteeing the loss of the merchant if he lost his weapons because of marine hazards or enemy action.

 

Historians have concluded that marine insurance is the oldest form of insurance. The first practical application was commercial in the twelfth century. Mediterranean traders practiced this type of insurance. The historian Valleani, who lived in the fourteenth century, states that the insurance of movables by sea in order to compensate for the loss caused by their loss in the sea appeared in Lombardy in 182 CE by the Lombard group, and then moved by this group to England and elsewhere The European authorities issued government orders to regulate this type of insurance, and then came the fire insurance. It was in England before the seventeenth century AD in the form of cooperative unions that would subsidize their members if their property was burned. In the middle of the seventeenth century, Fire against commercial fire was issued With different administrative systems depending on country situations.

 

Historical evidence and archaeological discoveries indicate that some ancient merchants in Babylon and China have followed forms of a system of transmission or distribution of risk since the third and second millennia BC. Traders Chinese commuters who were traveling through the dangerous fast streams of the river were handing out their goods in many vessels to limit the loss condition, the ship capsized or sank or stolen. The Babylonians developed a system of guarantee mentioned in the famous law of Hammurabi around 1750 BC. It was applied in Mesopotamia and in some countries of the Mediterranean basin. According to this system, a trader who took a sum of money to finance his trade was entitled to pay the creditor an additional amount for the latter guarantee that the loan would be canceled if the cargo was lost or stolen at sea.

 

In the first millennium BC, the people of Rhodes invented an insurance system known as the “general average”, where a group of merchants paid a sum of money to ensure that their goods were shipped simultaneously in the ship itself. The premiums collected were used to meet the debts of any merchant whose goods were damaged or lost during shipping, whether the cause was a storm or a drowning.

 

Another group of scientists believes that the Roman Empire was the first to invent the idea of insurance, by requiring arms dealers to send their arms by sea; to supply the empire’s forces with the state guaranteeing the loss of the merchant if he lost his weapons because of marine hazards or enemy action.

 

Historians have concluded that marine insurance is the oldest form of insurance. The first practical application was commercial in the twelfth century. Mediterranean traders practiced this type of insurance. The historian Valleani, who lived in the fourteenth century, states that the insurance of movables by sea in order to compensate for the loss caused by their loss in the sea appeared in Lombardy in 182 CE by the Lombard group, and then moved by this group to England and elsewhere The European authorities issued government orders to regulate this type of insurance, and then came the fire insurance. It was in England before the seventeenth century AD in the form of cooperative unions that would subsidize their members if their property was burned. In the middle of the seventeenth century, Fire against commercial fire was issued With different administrative systems depending on country situations.

 

Private or separate insurance contracts (such as uninsured loans, loans or other forms of contracts) were created in the Genoa Republic during the fourteenth century AD and the first written insurance contract known to date from 1347 AD. In the following century, the idea of insurance developed considerably and spread among the Italian city merchants, and their premiums differed dramatically from the expected risks. These modern insurance contracts have allowed insurance to be separated for the first time in history.

 

As for life insurance, it is said that the first insurance policy was issued in 1583 in England. However, its existence was very specific. It did not take a formal system except in 1774. The industrial revolution and the emergence of a middle class had a great effect On the demand for life insurance and the breadth of its spread.

In the 19th century, after the industrial revolution of the European countries followed by the development and spread of the machine, the concept of accident insurance emerged. Because of the killing of motor vehicles and the disruption of physical benefits, the first accident insurance office was established in England in 1848 The passengers were traveling by rail, the insurance cards were sold with the travel cards, and then the idea developed to include insurance against personal accidents and all diseases.

 

In addition to the concept of insurance, the so-called insurance against treason has emerged. Insurance against judicial guarantees, which is the responsibility of financial officers, who are appointed by judicial decisions against minors, endowments, maims and the like, and insurance against government inclusions due to the betrayal of some employees, Accidents of cars and aircraft.

 

Why is insurance the best way to compensate for the risk?

Insurance is considered the best way to deal with risk for the following reasons:

1 – Insurance sends reassurance in the hearts of people, where man feels more reassured after he knows that there are Compensates for damages or losses that may be incurred as a result of accidents for small amounts paid by them as premiums for the insurance company.

 

  1. The insurance shall transfer the burden of the risk and its material effects from the insured to a body or entity that agrees to assume responsibility such damage or loss is the insurance company.

 

  1. Instead of dealing with damage and losses caused by the risks in a negative way, insurance is the best way to deal with

These hazards and containment are one of the modern civil means to address the damage and risk.

 

The emergence of insurance in the world:

Insurance in its modern sense is a modern contract in science that appeared in the fourteenth century AD in Italy, where some people who undertook to bear all the dangers of marine ships or their cargo in the sea for a sum of money called marine insurance. Fire insurance in the seventeenth century following the fire that erupted in London in 1666, and in the nineteenth century appears life insurance. Insurance companies have insured individuals against any risk they may face, whether in their own lives, responsibilities or money. Some governments have forced their nationals to cover certain types of insurance, such as health insurance, car insurance, and so on.

 

Reasons for the emergence of insurance:

One of the most prominent reasons for the emergence of insurance in the West is the reluctance of many traders or owners of capital to trade their money because of the risks that may be exposed to their money and goods and the reason to refrain from trading affected the Western national economy negatively, and accordingly the thinkers to establish and establish insurance companies to ensure and rest Traders are to trade their money and compensate them for possible losses against the risk against a fixed premium of the money called the premium.

 

The modern concept of insurance

The insurance is defined as a contract between two parties called the first insurer (the insurance company) and the second (the insured) is obliged under this contract to pay the insurance company a sum of money or material compensation to the insured in the event of an accident or risk indicated in the contract leads to loss Material or gross in return for fixed premiums paid by the insured to the insurance company

 

Conclusion

Insurance has developed with the development of economic and social life and insurance companies have become a big part of society, as they aim to achieve prosperity and prosperity regardless of the profits achieved and became a measure of the most important standards of civilization in modern times and one of the economies of countries.

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