The Code of Hummurabi, written by the King of Babylon around the year 2000 BC contains one of the earliest known applications of the principles of insurance.

It talks about Robbery, Life and Cargo Insurance

Commercial basis first came into being in the 12th century in Belgium, offered goods insurance on goods and 1310 an insurance co was started.

In 1575 the British Parliament founded a Chamber of Insurance and in 1598 and insurance ordinance was issued in Holland.

The great fire of London in 1666 sparked the formation of a number of insurance companies.

In 1667, Nicholas Barbon opened an office under charter from the king to provide fire insurance for select residences in London.

During the 1670's the German guilds in Hamburg were united in a municipal insurance co. This group set standards for classification of risks, annual premiums based on the amounts insured and a maximum amount insurable.

In the USA the first fire insurance organization was established in Charleston, South Carolina in 1735. In 1752, a group of individuals, including Benjamin Franklin, formed a mutual, The Philadelphia Contributorship, which was the first American fire insurance co

Early days, written outside

In 1804, the Phoenix Assurance Co of London appointed a recording agent in Montreal to issue policies on their behalf.

First Canadian insurance company-Nova Scotia Fire Insurance Association which was founded a 1809 in Halifax and 1819 it was incorporated as Halifax Fire Assurance co.

Other earlier entries-Quebec Fire Ins Co in 1816, The British American Assurnace CO in 1833 in Toronto. THe Gore Dit Mutual, the Globe, the Central of Frederiction and the Home Dt Mutual in 1840.

Western Assurance Co in 1851. They spread to 22 countires.

The Dominion of Canada General Ins Co in 1887, was initially incorporated as the Manufacturers Accident Insurance co. The first President of the Dominion of Canada, Sir John A MacDonald was also Canada's first PM.

The premium income in Canada was dominated for many years by the large British ins co in Montreal in the 1800's.

Northern Assurance Co commenced in Victoria, BC in 1860.

The first policy written was for mechandise valued at 1000 Pounds Sterling stored in a building within the Hudson Bay Co.

Social Insurnace-Provided through State, citizens are insured. Takes care of: Hospitalization, medical plans, EI, workers' compensation etc.

Life & Health Insurance-Provides life, accident, sickness and disability insurance, pension and other financial services

General Insurance, P&C-It includes all insurance not covered in the other two categories mentioned.

Automobile: Largest single class of general insurance sold in Canada. Covers liability, accident, disability and property damage.

Property: Loss of or damage to property for both personal and commercial. First started with fire insurance and later broadened to include all other perils. When crime coverage is added, the policy is referred as multi-peril policy.

Business interruption: Coverage against loss of income.

Boiler & Machinery: Specialized one to complement property insurance. Covers heating and ac installation, indl machinery and quipment.

Crime Insurance: Includes burglary, robbery, theft and fidelity. Fidelity relates to the dishonest acts of employees. 

Liability: For claims arising out of bodily injury or death, loss or damage of property due to insured's negligence.

Marine: For both hull and cargo plus liability arising out of bodily injury or death of the person.

Aviation: The aircraft and against liability arising out of bodily injury or death.

Floater policy: Covers items that are portable and could be found at different locations.

Personal Property: Covers furs, jewellery, electronic items, sports quipments, fine arts collection.

Commercial Property: For portable items of a commercial nature.

Inland transportation: For loss of damage to godos while in transit on land or during delay.

Surety bonds: Guarantees that the principal will perform the boligation or undertaking he or she has with a third party.

1. Insurance makes an individual's existence more stable by removing the burdern of loss from one set of shoulders and sharing it with the rest of the community by paying a small definite premium regularly at a specified time instead of potentially large loss at a some unknown future date.

2. Insurers aim to achieve a balance of premiums to losses and expenses by having a good spread of risk by doing:

a)Volume-insuring a large number of risks. Large multi-line companies:Avia, RSA, The Economical Ins Group. Speciality Companies: THe Boiler Inspection and Ins Co, British Aviation Ins Co, FM Global

b)Diversity of type of risk-writing insurance on as many different kinds of risk as possible

c)Diversity of Location-Opportunity for profit increases with a greater number of locations insured.

In 3 ways:

Volume-Insure large number of risk

Diversity-Writing insurance on as many different kinds of risk as possible. (Combining personal, commercial aspects)

Diversity in location

Spread the Risk - Personal &

Commercial

Security - Gives peace of mind

Credit - Plays a big part in the expansion of credit. It is virually impossible to obtain credit without having insurance on the item concerend. Provides two fold protection. Protects insured's interest and property and the lender's invesment.

Capital - Manages vast sums of money, derived from Premiums paid in advance. Insurers invest heavily in federal and provincial govt bonds, minicipal and utility bonds and other secure invetments. Helps the govts for capital works and other businesses to start and expand.. this creates jobs and stimulate the economy. Major investor in ON, invested $212 bn, $40 bn in govt bonds, $80 bn in Corp Securities, $29 bn in mortgage and real estate, around 100k employees

Employment - 120k employees. Variety of jobs in different roles. Provides many indirect jobs as well. Automobile indry, jewellery shops, medical indry, legal and professional employees. 

Loss Prevention - Though spreading loss, they are interested in preventing losses. Lobbying for safer products and practices.

Fire Prevention-Improvement in quality of construction and electrical products.

Safe Drive - Pressure on automobile mfgs for safety features, stricter laws for drinking & driving etc

Crime & Fraud Prevention - Publicity campaigns, promotes anti-crime devices, supports block watch, neighborhood watch, crime stoppers, operation autograph etc.

Fire Prevention: Insurance cos owned fire brigades in earlier days. Research and recommendations helped for a safer communities. Ex: Quality building materials and construciton standards. Promotion of sprinklers and fire and smoke detectors, testing and accrediting of electrical appliacnes

Safe Driving: Many laws and safety features that we now take for granted are the result of prolonged lobbying by the industry. Ex: Pressure on auto mfgs for safety features, stricter laws by govts etc

Crime & Fraud Prevention: Supports the Ins Bureau of Canada which provides invetigation and consultaiton service for suspicious losses. Waging a strong publicity campaign to alert the public about fraudelent claims impact on them. Promotes anti-crime devices, supports Block Watch, Neighborhood Watch, Crime Stoppers and Operation Autograph etc