History of Insurance

What are the earliest forms of insurance?

Insurance has existed in some form since homo sapiens lived in communities.  Lloyd’s of London – probably the most famous insurance market – was born out of the ashes of the Great Fire of London and is older than the Bank of England.

What is the difference between insurance and assurance?

Insurance refers to an event that might happen (such as the sinking of a boat or destruction of property) during a specific period.  Assurance is concerned with an event that will definitely happen – in this case the death of an individual.  Both insurance and assurance products are purchased by individuals and companies to address specific risks that they face and to mitigate these risks.

When was Life Insurance conceived?

Life Expectancy tables date back to 1693.  However, these in themselves were not sufficient to allow insurance companies to accurately price life insurance cover.  It took another 50 years before the statistical techniques were sufficiently developed to allow accurate pricing.