Insurance History
Prior to 15th century the concept of insurance was not there. The concept of Insurance took place in the England in the 15th century. British were doing marine business through ships with other countries. In England 400 ships were going out of the country every year. 8 to 10 ships used to get damaged every year. In sea trading there were several risks were involved. The risk of sinking of the ship, fire accidents, perishing of goods and pirates who used rob the ships was there.
Marine traders used to gather in a coffee shop in London called Lloyd’s coffee house. They wanted to find a solution for the risks in the marine business. They thought of a plan, by which the losses to their goods while being carried by ship are to be shared by every one. They collected some amount of money from every ship. If anybody incurred a loss, it was compensated from the amount collected. Thus the concept of insurance was introduced for the first time in England. Insurance is other wise called sharing of losses.
The first insurance policy was issued in 1583 in England covering risk on human life for one year. 1705 regular policies were issued.
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