The history of life insurance dates back to ancient times. It turns out that ancient Rome, Athens, Egypt and China laid the foundation for this type of insurance, which is in great demand in the modern world.
Life insurance was quite well developed even among the ancient Romans in ancient times. Special unions were formed: trade unions, religious, and military. If an accident happened to one of the members of the union, he and his family received financial support. A special cash register was created for that purpose.
In 2700 BC, in Ancient Egypt, workers involved in the construction of the Egyptian pyramids organized mutual aid offices in favour of those colleagues or their families who were injured or killed in an accident. In the IV century BC in Athens Solon laid down the rules of mutual help to the members of geteries.
In the Middle Ages, various trade unions provided financial support to their members. Although they did not have permanent cash registers, financial assistance was collected as needed.
Life insurance in the modern sense, based on scientific and statistical approach, appeared in England.
The insurance of ships and cargo developed first, and later lives of captains became a subject of insurance.
In 1693 Edmond Halley defined the first full “mortality table”. This table helped him formulate the method of rate regulation in life insurance. He introduced to science the concept of expectation of life at specific ages.
In 1755 the English mathematician James Dodson based on the latest scientific achievements determined the cost of life insurance policies; he calculated the amount of capital that a person could save up to a certain age, if he made contributions throughout his life. Dodson wandered around various London cemeteries, took notes, calculated the average lifespan.He is considered the founder of scientific approach to insurance.
In 1762 Richard Price, a friend of Dodson, established Equitable Life Assurance Society, the oldest life insurance company in the world, functioning to the present day.
The first life insurance society in France emerged in 1819, in 1824 – in Belgium and Austria, in 1828 - in Germany. By the end of the XIX century the number of life insurance companies’ clients comes to millions.
The first Russian insurance company named “Life” was founded in 1835. But further development of insurance was slow as 'Life' had a 20-year-old right to monopoly in the trade.
Even today, life insurance is one of the most demanded types of insurance all over the world. It should be noted that no company in Armenia has a license to carry out life insurance.
Information source: lifeinsurance.kz