Insurance History

In a certain direction we can say that the insurance appears simultaneously following the appearance of the human society. We know of two types of economies in the human societies: savings in money (with the markets, the money, the instruments and so on) and not-money or normal economies (without money, markets, instruments and so on). The second type is a form more ancient than the first. In such economy and community, we can see the being helped insurance in the form of people. For example, if a house burns to the bottom, the members of the assistance of the community establish nine. If the same thing arrives to the neighbor at one, the other neighbors must help. Otherwise, the neighbors will not receive the assistance in the future. This type of insurance survived today in some countries where the modern saving in money with its instruments is not widespread (for example countries in the territory of the old Soviet Union).

Turning to the insurance in the modern direction (C. - with-D., insurance in a modern saving in money, in which the insurance belongs to the financial sphere), of the methods early to transfer or distribute the risk were practised by the Chinese and Babylonian tradesmen as a long ago as the 3èmes and 22emes milléniums BEFORE JESUS CHRIST, respectively. The unfair rapids of displacement of river of the Chinese traders would redistribute their articles through many ships to limit the loss due to the capsizing of any simple ship. The Babylonians developed a system which was recorded in the famous code of Hammurabi, C. 1750 BEFORE JESUS CHRIST, and was practised by the first Mediterranean traders of navigation. If a trader received a loan to place his forwarding, it would pay the lender by additional sum in exchange of the guarantee of the lender to countermand the loan if forwarding is stolen.

The monarchs of Achaemenian were the first to ensure their people and official fact by recording to him the process of guarantee in the governmental offices of notary. The tradition of insurance was carried out every year in Norouz (beginning of the new Iranian year); chiefs of various ethnic groups as well as from others wanting to take part, presented gifts at the monarch. The most important gift was presented during a special ceremony. When a gift was worth the sorrow more than 10.000 Derrik (gold coin of Achaemenian weighing 8.35-8.42) the question were recorded in a special office. They was advantageous with those which presented such special gifts. For others, the present were evaluated enough by the confidants of the court. Then the evaluation was recorded in the special offices.

The goal of the recording was that all times that the person who presented the gift recorded by the court had troubles, the monarch and the court would help it. Jahez, a historian and author, written in one of its books on ancient Iran: “The henever [W] the owner of the present is in the trouble or wants to build a building, bench a treat, have his/her married children, etc that that responsible for this in the court would check the recording. If the recorded quantity exceeded 10.000 Derrik, him or it would receive a quantity of twice as much. ”

In the state of New York, which has single laws in agreement with its stature like centers total businesses, former Attorney General Eliot Spitzer of New York was in single position to attack principal brokings of national insurance. Spitzer pled that the marsh and McLennan directed businesses with the insurance companies based on the quantity of contingent commissions which could be extracted starting from the carriers, rather than to base decisions above if the carriers had the best businesses for customers. Several of greatest commercial brokings of insurance since ceased accepting the contingent commissions and adopted new models of businesses.