Trevco Insurance Home Page Support Contact Us Careers English Espanol Clutch Insurance
Auto Insurance   Home Insurance   Life Insurance   Business Insurance   Motorcycle & Boat Insurance
Auto Insurance Home Insurance Life Insurance Business Insurance Motorcycle & Boat Insurance

 

 

Ancient world Insurance

In some sense, we can say that insurance dates back to early human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and monetary economies (with markets, currency, financial instruments and so on). Insurance in the former case entails agreements of mutual aid. If one family's house gets destroyed, the neighbors are committed to help rebuild it. Granaries embodied another early form of insurance to indemnify against famines. These types of insurance have survived to the present day in countries or areas where a modern money economy with its financial instruments is not widespread.

The first methods of transferring or distributing risk in a monetary economy, were practised by Chinese and Babylonian traders in the 3rd and 2nd millennia BC, respectively.[1] Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system that was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.

Achaemenian monarchs in Ancient Persia were presented with annual gifts from the various ethnic groups under their control. This would function as an early form of political insurance, and officially bound the Persian monarch to protect the group from harm.

 

At some point in the 1st millennium BC, the inhabitants of Rhodes created the 'general average'. This allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether to storm or sinkage.


The ancient Athenian "maritime loan" advanced money for voyages with repayment being cancelled if the ship was lost. In the 4th century BC, rates for the loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance.


The Greeks and Romans introduced the origins of health and life insurance c. 600 BC when they created guilds called "benevolent societies", which cared for the families of deceased members, as well as paying funeral expenses of members. Guilds in the Middle Ages served a similar purpose. The Jewish Talmud also deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

 

Visit one of our locations:

 

Baytown Alexander

 

411 N Alexander 
Baytown , TX 77520 
Location Map & Driving Directions

Phone Number

(281) 427-9063

Fax Number

(281) 422-0090

 

Beaumont

  

2465 S. 11th St. 
Beaumont , TX 77701 
Location Map & Driving Directions

Phone Number

(409) 833-7808

Fax Number

(409) 838-3351

 

Orange

 

2918 N. 16th St 
Orange , TX 77630 
Location Map & Driving Directions

Phone Number

(409) 883-8444

Fax Number

(409) 883-8546

 

Pasadena

 

2202 Strawberry 
Pasadena , TX 77502 
Location Map & Driving Directions

Phone Number

(713) 477-5655

Fax Number

(713) 477-1314

 

Port Arthur

5406 39th St 
Groves , TX 77619 
Location Map & Driving Directions

Phone Number

(409) 963-0349

Fax Number

(409) 963-0503

 

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
 
 
 

Buy Liability insurance  

 
Home Page Personal Insurance Business Insurance Service About Us Contact Us Blog RSS