Insurance Companies – An Overview
Article by Petar Genchev
Insurance industry is alive again. Recently, the industry faces a turntable issue with its reliability; the industry now is back and gains its composure in offering sound coverage to its million of policyholders. Since its existence in the early time, until today, it is still highly regarded and remains in the business. Their success is basically noticed with the growing number of insurance company today.At some point, you might have asked yourself regarding the beginning of insurance companies. Primarily, the existence of insurance company is credited to the existence of insurance. How then, did insurance come to be? It is quiet interesting knowing the early beginning of insurance which led to the growing of insurance industry. Let us take an overview with the history of insurance in human history.
The first written evidence of insurance was first sighted back in 2100 BC during the times of ancient Babylonians. The need for insurance arises that acts as guarantee from loss mainly by merchants in transporting and shipping their goods. The policy is normally paid by traders through loan which guarantee a safe transport of their products by caravan. Of course, similar today, treats of breakdowns, bad weather and robbery are some perils of early transport. With the development of time, insurance increased in popularity. Greeks and Phoenicians wishes similar guarantee in seaborne commerce. The Romans first offers burial insurance in which people are joined in burial clubs that pay the funeral expenses onto the surviving member of the family. During the medieval times, guilds protected the members from shipwreck and fire, paid ransoms onto the pirates and give honorable burials and support poverty and sickness.By 17th-18th centuries, the British commerce rapidly growing and risks also increases. In such a way, the progress was in fact working against insurance industry in which goods are lost and damaged upon its shipment of far distances. Therefore, higher return for claims is done.People gradually saw the importance of insurance (in Danish samlet forsikring) to their business. They already accept the need to pay insurance premiums in order to protect their family and themselves in the event of loss. By 1835, insurance companies awakens by the fire struck in New York were losses are considerably high with no sufficient reserves in that situation. By 1837, the law was passed requiring the company to maintain reserves. Such need was reiterated in 1871 as great fire hit Chicago.Since then, insurance companies work altogether in finding the solution to address the challenge of huge losses. So, they come up with a system known be as reinsurance in which losses were spread out among numerous companies. Such system is still used in all kinds of insurance.From its early beginning until today, insurance continues to prosper in protecting goods, properties and even your life in the event of uneventful occurrences. For more information about insurance companies click here
About the Author
Petar Genchev is a freelance writer with many fields of interest, who will be more than happy to share interesting information with the rest of the world.