A History Of Insurance.
With the development of modern businesses and lifestyles, the emergence of insurance burst in existence in an effort to help protect against many types of dangers and risks. These pertain to the loss of property or possessions, damage to buildings, an incident of the familial breadwinner's loss of mobility or death, loss of automobiles to accident or theft, or for the requirement of medical treatment for a complicated health condition.
The insurance company helps in minimising the risk by safe practice implementations and fire hydrant installation by a professional contracted by the insurance company. The insurance, in this way, lifts the risk from the shoulders of an individual person and spreads it onto the whole community thus providing a continuous source of long-term finance to both the individuals of the private and public sector.
An insurance company is a very profitable organisation that provides attractive opportunities to the white collar employee community. It can be easily explained by an example that if the risk is drowning in a pool, the life jackets are our insurance. When people viewed risks in their businesses and property, in order to speculate the situation and to cover any prospective losses, insurance emerged.
The idea of insurance lies in the birth of humanity. As an example: group hunting, in order to spread the risk to avoid a single hunter's horrible death or the transfer of goods. This also allowed them to ensure that if they suffered a loss or were unable to find food that the community as a whole provided in these instances.
However, the first written Insurance law dates back to the Babylonian obelisk monument in the times of King Hammurabi, called the “Hammurabi Code” carved by the King himself. Though the ancient laws are said to be rigid, the law states that the debtor is not supposed to pay back any loans he took on in the incidence of a dangerous catastrophe suffered either by him or his property. It referred to a host of situations including disability, flooding or death.
With the initiation of the exchange of goods via shipments over the sea in 1600, the need of various improvements and better insurance policies were needed. Blaise Pascal, in 1654, invented a calculator that enabled the calculations of risk factors and probabilities.
Pierre de Fermat, a fellow countryman helped in discovering a way to express the probabilities. Pascal discovered the insurance rate by calculating triangles that not only formed the first tables of actuary but are being used until this very day to calculate the rates of insurance.
In 1666 the great fire of London destroyed over 14,000 buildings and structures across the city. This led to the underwriters who had worked in the marine insurance stabled firms to provide insurance to fire victims. After many years, the people and the buildings had not recovered to their original status and in 1693, the first mortality table to cover life insurance was established.
The system was established in Europe within 40 years of the great fire. However, the United States took more than a century to introduce this system.Nowadays, many people view insurance as an expensive addition to maintaining and protecting property, life and health. Strict measures are implemented to reduce the risk of fraud which can make making a claim a difficult and daunting process.