Insurance is a cornerstone of modern society, providing financial security and peace of mind. But where did it all begin? Let’s journey through time to uncover the origins of insurance and explore some fascinating facts about its development in South Africa, with a special shoutout to King Price.
The birth of insurance: Ancient civilisations
The concept of insurance dates back to ancient civilisations. The earliest forms of insurance can be traced to Babylonian merchants around 1750 BC. They developed a system known as ‘bottomry,’ where merchants would receive loans to fund their shipments. If the shipment was lost at sea, the loan didn’t have to be repaid. Talk about a ‘sinking’ feeling!
In ancient China, around 3000 BC, merchants would distribute their goods across multiple vessels to minimise the risk of losing an entire shipment. Similarly, in ancient Greece and Rome, guilds and societies provided financial support to families in case of death or injury.
The evolution of modern insurance
The modern insurance industry began to take shape in the seventeenth century. The Great Fire of London in 1666, which destroyed over 13,000 houses, highlighted the need for fire insurance. This led to the establishment of the first fire insurance company, ‘The Insurance Office for Houses,’ by Nicholas Barbon in 1681.
Marine insurance also evolved during this period, with Lloyd’s of London emerging as a leading marketplace for marine insurance. By the nineteenth century, life insurance and health insurance had become more common, laying the foundation for the diverse insurance products we have today. It seems like people finally realised that life’s a risky business.
Insurance in South Africa
Insurance in South Africa has a rich history, influenced by the country’s unique socio-economic landscape. The first insurance company in South Africa, the South African Mutual Life Assurance Society, was established in 1845. This company, now known as Old Mutual, played a significant role in developing the country’s insurance industry. Insurance for an ox-wagon, anyone?
And while King Price isn’t quite as ‘old’ as Old Mutual (we mean no disrespect to our insurance peeps), we thought we’d give you some fun and interesting facts about the king of insurance…
Established in 2012, King Price quickly became a standout player in the South African insurance industry. Known for its innovative approach, King Price offers unique features such as decreasing premiums on car insurance and royal service, setting it apart from traditional insurers. King Price strongly focuses on client satisfaction, digital transformation, and community involvement. Despite being relatively young, King Price has numerous awards in its throne room for exceptional service and continues to lead with forward-thinking solutions and a commitment to sustainability.
From its ancient origins to its modern-day innovations, the history of insurance is a testament to humanity’s ingenuity in managing risk. So, whether you’re a history buff or simply curious about insurance, understanding its origins provides valuable insights into this essential industry.
Now that you know some facts about why insurance exists today, why not get a commitment-free quote from the king today by simply clicking here or chatting to us on WhatsApp 0860 50 50 50.
Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here.
