The Origins of Modern Insurance

The modern concept of insurance traces back to historical events, such as the Great Fire of London in 1666, which led to the creation of the first homeowners insurance company to aid those affected in rebuilding their lives. This event highlighted the need for fire insurance in a rapidly urbanizing society, prompting innovations in risk management and the establishment of protective contracts. Benjamin Franklin further advanced the concept in the U.S. by creating the Philadelphia Contributionship, a model that laid the groundwork for contemporary insurance practices. Today, insurance provides peace of mind, serving as a contractual promise that ensures financial backing when disaster strikes.