A Historical Survey of the Development of Life Assurance

Abstract

The earliest forms of insurance mainly concerned ships and their cargoes; the business was well established by the Middle Ages both in Great Britain and the continent of Europe. The first known life policy was issued in 1583 following strictly on the lines of a marine policy, but it was not until the late 17th century that efforts were made to meet the growing demand for life insurance.

Whenever there is a contingency, the cheapest way of providing against it is by uniting with others, so that each man may subject himself to a small deprivation, in order that no man may be subjected to a great loss. He, upon whom the contingency does not fall, does not get his money back again, nor does he get from it any visible or tangible benefit, but he obtains security against ruin and consequent peace of mind. He, upon whom the contingency does fall, gets all that those whom fortune has exempted from it have lost in hard money, and is thus enabled to sustain an event which would otherwise overwhelm him.

Select Committee of the House of Commons, 1825