History of Property Insurance Market in the USA Essay Example

been profitable for all stakeholders due to lucrative investments, but they may experience losses depending on circumstances affecting insured property. It is difficult to trace the exact origins of Property Insurance Markets throughout history. Since the beginning of human civilization, people have insured things and protected each other's financial security. Insurance markets are not new but rather an evolution of securing assets and providing assistance in economic situations. This has led to various insurance markets, including the "PROPERTY INSURANCE MARKET" - early instances of insurance.

Forms of insurance were known to the Romans and to some extent were practiced among the Collegia. These bodies were similar to our benefit societies, providing burial and making provisions for soldiers' promotion in their organizations. Essentially, they operated on the insurance principle by accepting a stipulated sum from members and offering certain services in return. The insurance business is categorized into four main branches: Marine Insurance, Life Insurance, Fire Insurance, and Casualty Insurance. Marine Insurance, practiced in the Mediterranean for over seven centuries, demonstrated its established presence among commercial countries of that era.

According to the History of Insurance (n. p.), fire insurance was the second type of insurance that became more permanently established. It was followed shortly after by life insurance, which was founded with a modern approach. Casualty insurance, also known as Accident Insurance, was the initial form of insurance that provided coverage for individuals who had an accident while traveling by railway. These three types of insurance - fire, life, and casualty - are all based on the principles of Insurable Interest, Utmost Good Faith, and Indemnity. Insurable Interest refers to a person's need to benefit from the

existence and suffer from the loss of an insured item. Utmost Good Faith necessitates full disclosure of all pertinent information.

Customers must provide honest answers to all questions when acquiring insurance in order to preserve the entirety of their coverage. It is crucial to comprehend that insurance does not permit individuals to profit financially from it; instead, its objective is to assist in returning a person's financial condition back to its initial state prior to any loss or damage. (Principles of Insurance, n.)

p. Conclusion: The historical content of Property insurance demonstrates that it not only safeguards our land and other assets, but also creates a lasting impact. It has consistently yielded profits and presently offers advantages to numerous retirees and families of the deceased who were insured. The growing number of individuals acquiring insurance for an improved life is fueling the expansion of the property insurance market. Previously, insurance and property insurance policies achieved substantial worldwide triumph as people displayed immense interest in this groundbreaking savings opportunity. Now, attention turns towards what lies ahead.

What implications will it have for future market policies in property insurance? Will it benefit people or make stakeholders less interested? These questions may have different answers depending on the conditions of the property insurance market and where it may lead.

Words Cited

1. History of Insurance. October 24, 2007 http://www.oldandsold.com/articles17/insurance-1.shtml