Insurance

Sher Jahan Khan. MBA-FM BGSBU

INSURAN
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

INSURAN
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.

History of Insurance
Some primitive concept of insurance had developed in 1750 B.C among the merchants. The Greeks and Romans introduced the origins of health and life insurance c. 600 BC when they created guilds called "benevolent societies" which cared for the families of deceased members, as well as paying funeral expenses of members.

History of Insurance
Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news.

History of Insurance
Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. In 1681 Nicholas Barbon, and eleven associates, established England's first fire insurance company, the 'Insurance Office for Houses', at the back of the Royal Exchange. Initially, 5,000 homes were insured by Barbon's Insurance Office.

History of Insurance
The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modernday Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and made standard the practice of insurance.

Types of Insurance

Home Insurance Property Insurance Burial Insurance

Auto Insurance

Health Insurance Disability Insurance Mortgage Insurance

Life Insurance

Livestock Insurance

Top 10 Insurance Markets

United States

Japan
UK France Germany

Italy
Korea Canada Netherlands Spain 0 200 400 Life Insurance 600 800 1000 1200

Non Life

Benefits of Insurance
Private Insurance can relieve pressure on social insurance system, preserving government resources for essential social security. Facilitates trade and commerce. Acts as an long term investment for general public.

Benefits of Insurance

Secures the future of the children. Proves beneficial in the event of fatal illnesses like cancer, kidney ailments, heart transplants, other surgeries etc. It helps in pooling large funds which are then invested in various developmental works.

Thank You