The Advent Of The Insurance Industry

1880 WordsJan 11, 20168 Pages
Thomas Ryan Mrs. Rideout Securities and Insurances 1/11/16 The Advent of the Insurance Industry As modern society emerged, insurance became a necessary factor in life. We as a population became overly aware of the many dangers of life. Not only did these dangers represent a hazard to our lives, but our posessions as well. Aspects of our lives like our homes, vehicles, and health represent a majority of the coverage in the modern insurance industry. However, when studying the industry, it is important to understand the emergence as well as the outcome. Even though different forms of insurance can be traced back to the first millenium, the first notable industry began in Europe. The first noted insurance contracts originated in 14th…show more content…
The company set out to insure brick and frame homes at first. Initially, 5,000 homes were insured by Barbon’s agency. After Barbon’s initial success, many similar companies followed suit. Much like most economic trends, success is ultimately followed by competition. At first, each property insurance company employed their very own fire unit to fight the impending hazards. They also began distributing “Fire insurance marks” to their customers. These marks were displayed above doorways to represent ownership of fire insurance. This way, the employed fire unit would know what houses to save in the event of an incident. This system was soondubbed a bad idea, as rival units often ignored burning buildings once they discovered they did not carry their partner’s insurance policy. Eventually, a solution was agreed upon in which all the insurance companies would pay their resources to a municipal authority. This authority would then use the combined money and equipment to fight all fires throughout the territory. This did not solve the problem entirely, as the different units still tended to favor saving insured buildings to those without any insurance at all. In Colonial America, the first insurance company that underwrote fire insurance and was formed in Charles Town, South Carolina in 1732. In 1752, Ben Franklin founded the Philadelphia Contributionship for the Insurance of Houses. Franklin 's company made contributions toward fire
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