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The Beginning of Insurance

Madison

Created on October 18, 2024

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Transcript

How Did Insurance Begin?

The beginning of insurance can be traced back to 17th century England!

Voyages to the New World and Far East

Sponsers were Needed

Under the Contract

Cost

The financier wrote their name. They would also list the amount of risk they agreed to assume. This is where the term underwriting came about.

Merchants would go to the docks and post a contract. These sponsers are now known as insurance companies.

A fee would be charged by the financier for this coverage.Today this is known as premium.

Voyages were used for trading, which could result in the loss of a ship and/or cargo. Merchants and ship owners needed protection.