The origins
The insurance as "fraternal" or "research protection" existed from ancient times. Traces of practices akin to insurance exist particularly in Mesopotamia, where conducting a breakdown between traders of the costs of theft and looting caravans. Other examples are also present in Egypt and Ancient Rome.
The loan to the "big adventure" and the birth of marine insurance
But these practices are still far from the modern insurance that truly has its origins in the "ready for the big adventure."
This type of loan adapted to maritime trade was practiced by the Greeks and Romans. Merchant bankers were using to finance their maritime expeditions that cost often very expensive. If the boat was sinking, the merchants had nothing to repay the banks; by cons, if he could safely banker was repaid and could receive a very high compensation.
Picked up from the twelfth century, the loan "to the big" had several abuses at interest rates that encouraged Pope Gregory IX to prohibit usury in 1234.
Therefore, it was necessary to find a system for the lender to be certain of its loan: bankers or other merchants agreed to guarantee the value of the ship and its cargo in exchange for a sum of money previously provided . Marine insurance was born and continued to grow in the ports of the Mediterranean and the Atlantic. Oldest insurance contract we track was subscribed in Genoa in 1347 and is also in Genoa was founded as the first marine insurance company in 1424.
The legislated marine insurance business
From the thirteenth century, the profession is organized and laws have appeared in different cities. The development is slower in France than in other countries, mainly because of religious blockages. It was not until 1681 and Colbert for the marine insurance business is legislated.
The "General Insurance Company and big adventures" born by an edict of Louis XIV in 1686 and in 1786 are created the "General Insurance Company against the fire" of Perier brothers and "Insurance Company against fire "from Claviere and Batz.
The development of life insurance
If the Marine Insurance is the first insurance in its modern form, other types of insurance arose thereafter, including life insurance in the seventeenth and eighteenth century.
With the tontine, the Italian financial Lorenzo Tonti in 1652 created a form of insurance with a procedure similar to life insurance. ROSCAs are, even today, associations of persons established for a certain period and that pool of funds. Following a previously defined duration, the association is dissolved and the funds distributed among the people. The first royal tontine are allowed at the end of the seventeenth century and several tontiniers loans are launched in the eighteenth century. In 1770, the royal tontine are converted into fixed-rate annuities by judgment of the King of France of the Council.
In 1787, the "Royal Life Insurance Company" is created and in 1788 the Edict of July 27, forced the "Insurance Company against fires" to divide into two branches: one against fire, the the other on life.
Modern insurance from the nineteenth century
The French Revolution has slowed the development of the modern movement insurance in France. But in 1816, a royal decree authorizes insurance against fire and in 1818 the State Council authorizes the life insurance. Therefore, several companies are created and thrive rapidly the Union (now AXA and UAP), Royal (now National and GAN), the General Insurance and the Phoenix (now AGF, now belonging to the Allianz Group).
Gradually, other potential risks are operated by insurance companies: accident, broken windows, hail, livestock mortality, theft, various civil responsibility ...
The late nineteenth century has several key dates in the development of insurance for individuals:
The Law of 1 April 1898 widens the scope of mutual who can now practice all forms of insurance or specialize
The law of 9 April 1898 on compensation for industrial accidents makes it mandatory providing evidence of the responsibility of the employer by the employee injured. This founding law allows a generalization of accident insurance for all workers and establishes the true state control on insurers.
The development will continue and accelerate in the first half of the twentieth century, including the arrival of new damage insurance needs (automobile, miscellaneous goods ...)
New structures are created to organize the activity: National of insurance agents Union Federation (FNSAGA) in 1919, the Central Bureau of French insurance companies for the study of statistics on car accidents in 1930 The French Federation of Insurance Companies in 1936 ...
Laws regulating the activity are passed: the Law of 13 July 1930 regulating the insurance contract, the law on auto insurance in 1935, the Decree-Law of 14 June 1938 standardizing the various regulations and control of the State insurance and capitalization companies, the Act of 12 July 1940 relating to the direction of the Insurance Department of Finance and the Law of 25 April 1946 on the partial nationalization of 34 insurance companies in groups (UAP, AGF, Gan ...) and the creation of the Central Reinsurance Fund (JRC).
In the second half of the twentieth century, the area is organized and regulates as we know it today. Auto insurance is required by law of 27 February 1958 and the Insurance Code was officially established by Decree of 16 July 1976. Subsequently, different laws will improve the protection of policyholders and facilitate their compensation, including conventions between insurers. Finally, the sector is definitely liberalize the privatization of state-owned companies in the 1990s.
Good to know: all dates and details are available on the chronology of the sources of the Guide on the history of insurance, available on the website of the FFSA.
