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Showing posts from September, 2019

Evolution of Marine Insurance

Around the 13th Century, Lombardy of Northern Italy emerged as a flourishing center for trade. The early practice of Insurance of ships is called marine Insurance and is associated with the merchants of the cities of Lombardy. The Lombard’s also established themselves in London and other cities. When the Germans conquered and devastated the cities of Northern Italy, many of the mercantile families of Lombardy migrated to the more favored and settled countries where they would be more secure and free to practice their trade. Many of them went to London. Wherever they went the Lombard’s took with them the practices of marine Insurance, banking and money lending. The earliest known policy issued in London was inscribed in Italian and was dated 20th Sept. 1547. The policy written in English dated 1555 was known to be on the ship “Santa Crux” from any part of the Isles of India of Calicut to Lisbon.
In contrast to the Jews who demanded very high rates of interest for their loans, the Lombar…

Origin and History of the Insurance Industry

The Ancient Days
The earliest man is said to have used his overgrown fingernails as a means of protection. The Stone Age man found the sharp edge of the stone as a better Idea. He slowly developed weapons. When he moved northwards to colder regions, he had to find a way of protecting himself against the biting cold He took shelter in the cave. Besides he had to find ways of protecting himself against fire, flood, and loss to his life.  Slowly as his needs began to increase, so did his belongings. He had to find methods to safeguard his property and life against losses. He was willing to make some sort of sacrifice to achieve security in this way he has ever been in search of protection against various risks to his life and continues his quest for security. Insurance is one of the most effective protection found by man as a way of dealing with risks, against uncertainty. Although the thought of protection has gained momentum in the recent past the origin was found back almost 6000 years…