When we think of insurance today, we imagine companies, contracts, and claim forms. But
believe it or not, the idea of insurance has been around for thousands of years. It didn’t just pop
up overnight—it evolved from basic human needs: protection, security, and survival.
So, who actually created insurance?
Well, there’s no single person we can point to, like “Yep, that’s the guy!” Instead, it was born out
of necessity by ancient civilizations.
A Look Back in Time
The first traces of insurance-like practices go all the way back to Babylonia, around 1750 BC.
That’s over 3,700 years ago! The famous Code of Hammurabi—a set of laws from King
Hammurabi—had a concept known as “bottomry.” Here’s how it worked: if a merchant borrowed
money to ship goods, and the ship sank or was attacked, he didn’t have to repay the loan. Risk
was shared. That’s an early form of marine insurance.
Fast forward to ancient Greece and Rome—they had mutual aid societies. Members would
pool money together, and if someone died, the group used the money to help pay for burial
costs or support the family. It wasn’t called “life insurance” back then, but that’s pretty much
what it was.
Modern Insurance Gets Its Start
Things really picked up in 17th-century England. After the Great Fire of London in 1666,
which destroyed over 13,000 houses, a man named Nicholas Barbon stepped in. He started
the first fire insurance company. People realized they needed financial protection, and Barbon
turned that idea into a business.
But wait—there’s more!
Around the same time, in Lloyd’s Coffee House in London, merchants and sailors gathered to
talk about shipping risks. This eventually turned into Lloyd’s of London, one of the most
famous insurance markets in the world today.
Why It Matters
So, while no one person “invented” insurance, it’s been a global effort shaped over centuries.
From Babylonians to British businessmen, it all came down to the same thing: protecting what
matters most.
Insurance today may be more complicated—with policies, premiums, and paperwork—but its
heart is still the same. It’s about sharing risk, helping each other, and being ready for the
unexpected.