TRACKING THE HISTORICAL TRAIL OF INSURANCE IN THE WORLD AND IN INDONESIA
Insurance is currently considered an important part of modern society with the intention of providing protection against unexpected financial risks
Insurance is currently considered an important part of modern society with the intention of providing protection against unexpected financial risks for them.
Based on historical traces, the concept of insurance has actually existed for thousands of years, and continues to evolve along with the development of the era until today.
In the Hammurabi code, there is a rule stating that merchants who borrow money for maritime trade can pay additional fees to lenders so that their loans are written off if their ships or goods are lost at sea. This concept is the basic foundation for the emergence of insurance.
Based on historical traces, the concept of insurance has actually existed for thousands of years, and continues to evolve along with the development of the era until today.
Insurance in Ancient Times
The history of insurance began in ancient civilization in the Middle East (Babylonia) which was created by King Hammurabi and known as the Hammurabi law around 1750 BC.In the Hammurabi code, there is a rule stating that merchants who borrow money for maritime trade can pay additional fees to lenders so that their loans are written off if their ships or goods are lost at sea. This concept is the basic foundation for the emergence of insurance.
Similar practices were also carried out in Ancient China, where merchants spread their cargo across several ships.
In this way, if one ship sank, they would not lose their entire investment. This is an early form of the principle of risk diversification which is the basis for the transformation of the emergence of modern insurance.
These policies provided protection against the risks of sea travel and loss of cargo.
At that time, international trade began to grow rapidly and the need for protection against financial risks became increasingly important.
In the 17th century, insurance began to be organized as it happened in England with the establishment of Lloyd's of London, which was originally a coffee shop owned by the Edward Lloyd family.
This place became a meeting place for merchants, ship owners, and underwriters who wanted to make insurance contracts for shipping.
Later Lloyd's then grew into the most popular maritime insurance institution in the world.
After that incident, Nicholas Barbon founded the first fire insurance company in London with its main product providing services for residents who wanted to protect their homes and property from the threat of fire.
Now for life insurance, its development began in the 18th century in London with the establishment of the first life insurance company, the Amicable Society for a Perpetual Assurance Office in 1706.
Insurance in Indonesia
The history of insurance in Indonesia only began during the Dutch colonial occupation.
The first insurance institution in the Dutch East Indies was *Nederlandsch-Indische Levensverzekerings en Lijfrente Maatschappij* (NILLMIJ), which was established in 1859 in Batavia. Initially, this insurance service was only intended for European citizens living in the colonial area.
After Indonesia's independence, it opened up wider space for the insurance industry to grow and develop.
Then, for example, Jiwasraya Insurance emerged in 1859 and was later nationalized by the government to become a state-owned enterprise.
Currently, the insurance industry in Indonesia covers various types of products, such as life insurance, health insurance, vehicle insurance, and sharia insurance.
Regulation and supervision of this industry is carried out by the Financial Services Authority (OJK), which plays an important role in maintaining stability and consumer protection.
Digital Transformation and Modern Challenges
Entering the 21st century, various insurance companies have undergone a massive transformation following the development of digital technology.
The digitalization era encourages insurance companies to provide services to customers quickly, transparently and efficiently.
It is so easy for consumers to buy policies, file claims, and monitor their protection status through an application and online platform.
These things require insurance companies to continue to innovate and adapt their products to remain relevant and able to meet the needs of modern society.
Conclusion
The history of insurance is a long story about human efforts in dealing with the uncertainties of life.
From simple protection in ancient trading times to complex and globally integrated systems, insurance has become an inseparable part of the economy and social life.
By understanding how the history of insurance began, we can better appreciate the importance of protection and risk management in everyday life.
In this way, if one ship sank, they would not lose their entire investment. This is an early form of the principle of risk diversification which is the basis for the transformation of the emergence of modern insurance.
Developments in the Mediterranean World
The concept of insurance continued to develop and spread to the Mediterranean region, including Italy. In the 14th century in Italy, especially in coastal cities such as Genoa and Venice, the first written insurance policies began to appear.These policies provided protection against the risks of sea travel and loss of cargo.
At that time, international trade began to grow rapidly and the need for protection against financial risks became increasingly important.
In the 17th century, insurance began to be organized as it happened in England with the establishment of Lloyd's of London, which was originally a coffee shop owned by the Edward Lloyd family.
This place became a meeting place for merchants, ship owners, and underwriters who wanted to make insurance contracts for shipping.
Later Lloyd's then grew into the most popular maritime insurance institution in the world.
The emergence of Fire and Life Insurance
The great fire of London in 1666 which burned down 13,000 houses, became the forerunner to the emergence of property insurance.After that incident, Nicholas Barbon founded the first fire insurance company in London with its main product providing services for residents who wanted to protect their homes and property from the threat of fire.
Now for life insurance, its development began in the 18th century in London with the establishment of the first life insurance company, the Amicable Society for a Perpetual Assurance Office in 1706.
The history of insurance in Indonesia only began during the Dutch colonial occupation.
The first insurance institution in the Dutch East Indies was *Nederlandsch-Indische Levensverzekerings en Lijfrente Maatschappij* (NILLMIJ), which was established in 1859 in Batavia. Initially, this insurance service was only intended for European citizens living in the colonial area.
After Indonesia's independence, it opened up wider space for the insurance industry to grow and develop.
Then, for example, Jiwasraya Insurance emerged in 1859 and was later nationalized by the government to become a state-owned enterprise.
Currently, the insurance industry in Indonesia covers various types of products, such as life insurance, health insurance, vehicle insurance, and sharia insurance.
Regulation and supervision of this industry is carried out by the Financial Services Authority (OJK), which plays an important role in maintaining stability and consumer protection.
Entering the 21st century, various insurance companies have undergone a massive transformation following the development of digital technology.
The digitalization era encourages insurance companies to provide services to customers quickly, transparently and efficiently.
It is so easy for consumers to buy policies, file claims, and monitor their protection status through an application and online platform.
These things require insurance companies to continue to innovate and adapt their products to remain relevant and able to meet the needs of modern society.
The history of insurance is a long story about human efforts in dealing with the uncertainties of life.
From simple protection in ancient trading times to complex and globally integrated systems, insurance has become an inseparable part of the economy and social life.
By understanding how the history of insurance began, we can better appreciate the importance of protection and risk management in everyday life.
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ECONOMIC AND BUSINESS