Wfcsolution

The history of insurance can be traced even as far back to naval traders in the 13th century. Back then the first known contracts were used to mitigate the risk of long treks across the oceans to transfer goods. This was due to there being a high number of potential risks like storms or pirates. The true roots of risk mitigation in the form of insurance can be even traced back to Babylonian and Chinese traders in the second and third millennium BC. Chinese merchants would split their cargo among many ships to reduce the risk of their entire cargo being destroyed. The Babylonian had a system where if a merchant funded his load using a loan if they pay an extra fee the debt would be forgiven in the eventuality that the cargo is destroyed in unforeseen circumstances. Even as far back the first millennium, the inhabitants of Rhodes used a system that collected premiums from traders to insure them, the collected premiums were used to reimburse insured traders that had lost their cargo. Sound familiar? In ancient Persia, different groups presented the monarchy with gifts every year to practically protect themselves from harm. This created one of the world’s first instances of political insurance. In the medieval era, guilds filled the same role as the benevolent societies in the ancient world and basically insured their respective members. In this time once again sea traders come into play in the world of insurance when investors both insure cargo shipments and give the traders a credit. This pioneered two of the biggest modern financial institutions; the insurance and credit industries. The first independent insurance contracts though were invented in Genoa in the 14th century. We are always available to give you a full consolation on insurance and any other financial questions.