The fascinating journey through the history of security: Since when have insurance policies really existed?
07.04.25
5
Minutes
Katrin Straub
Managing Director at nextsure
Have you ever wondered how old the idea of insurance is? The answer goes back more than five thousand years. Find out how the desire for protection developed from simple beginnings into today’s complex world of insurance.
The topic in brief and concise terms
The earliest forms of insurance as risk-sharing communities can be traced back to 3000 BC among Phoenician seafarers.
The Hamburger Feuerkasse, founded in 1676, is the world's oldest public insurance company still in existence.
The introduction of social insurance by Bismarck (health insurance in 1883, accident insurance in 1884, pension insurance in 1889) revolutionised social protection in Germany.
Uncovering origins: first risk-sharing over 5,000 years ago
The idea of insurance is not an invention of modern times. As early as around 3000 BC, Phoenician sea merchants used a form of sea loan. This loan covered the loss of a ship caused, for example, by a storm. If ship and cargo arrived safely, merchants paid high interest to the lenders. In ancient Babylon, around 1750 BC, there was the Code of Hammurabi. It already contained regulations similar to today’s liability principles, for example for master builders. Roman Collegia Funeratica covered funeral costs for members and functioned like early death benefit funds. These early forms show a fundamental human need for collective protection over many centuries. The development continued in the Middle Ages.
Harnessing medieval solidarity: guilds as precursors to modern insurance policies
In the Middle Ages, guilds and trade guilds developed from old Germanic communities. From the eighth century onwards, these offered their members support in the event of death, illness or fire. Special fire guilds emerged from the 16th century in regions such as Schleswig-Holstein. The Hamburg Fire Fund, founded on 30 November 1676, is considered the world’s oldest still-existing public insurance company. It was established after devastating city fires, such as the Great Fire of London in 1666, which highlighted the need for such cover. The first marine insurance contract on German soil was concluded in Hamburg in 1588. These commercial approaches further professionalised risk prevention. Learn more about what an insurance certificate is and its historical significance. The next stage was the development of specific lines of insurance.
Advancing professionalisation: The first insurance companies and lines of business emerge
The first modern life insurance company, the Amicable Society for a Perpetual Assurance Office, was founded in England in 1706. Another early life insurance company based on mathematical principles was established in England in 1765. In Germany, Ernst Wilhelm Arnoldi founded the Gotha Fire Insurance Bank in 1820. Seven years later, in 1827, the Gotha Life Insurance Bank followed as the first German life insurer. The Prussian General Land Law of 1794 already contained 425 insurance law provisions. These regulations showed a growing need for legal structure. Industrialisation in the 19th century accelerated the founding of many new insurance companies. The complexity of the risks soon required state regulation and social security systems.
Establishing social responsibility: Bismarck's introduction of social insurance
At the end of the 19th century, Chancellor Otto von Bismarck introduced social insurance in Germany. It began in 1883 with statutory health insurance for workers. Employees paid two-thirds, employers one-third of the contributions to health insurance. This was followed in 1884 by accident insurance for businesses. Old-age and disability insurance was introduced in 1889 for people with an annual income of less than 2,000 Reichsmarks. These laws created a legal entitlement to benefits for the first time. At the time, pensions were paid from the age of 70. These state-mandated insurance schemes formed the foundation of the German welfare state. The legal framework for private insurance soon followed.
Creating legal frameworks: modern insurance is taking shape
The Insurance Supervision Act (VAG) and the Insurance Contract Act (VVG) created the modern legal framework in 1901 and 1908. The VAG aimed to ensure the financial stability of insurers and the protection of policyholders. The "Reichsgruppe Versicherungen" promoted slogans about community during the Second World War. After the Second World War, the insurance industry in West Germany recovered quickly, supported from 1957 by the EEC. State-subsidised retirement provision such as the Riester pension (2002) and Rürup pension (2005) were added. Unisex tariffs were introduced in 2012 and eliminated gender-specific premium differences. Digitalisation now shapes the industry with numerous compulsory insurance policies and optional cover such as life insurance. The development is therefore a continuous process.
History shows how important comprehensive cover is. At nextsure, we understand the need for tailored solutions in a complex world. We help you find the right protection for your individual needs.
Request an individual risk analysis now: have your insurance situation reviewed free of charge and receive specific optimisation suggestions.
More useful links
Wikipedia offers a comprehensive article on the history and concept of insurance.
Swiss Re provides a detailed brochure on the development of the German insurance market.
The German Historical Museum (DHM) highlights the introduction of health insurance for workers in 1883 as an important step in social legislation.
The Federal Ministry of Finance offers insights into the history of German financial administration, which also includes the regulation of the insurance sector.
The University of Cologne provides information on the history of its insurance seminar and the development of insurance science.
The Federal Archives offers insights in its library newsletter into historical documents relevant to research on the history of insurance.
The Archivportal-D provides access to archival materials from German archives, which also contain sources on the history of the insurance sector.
The Employers' Association of Insurance Companies in Germany (AGV) provides information on the history of the association and social partnership in the insurance industry.
The German Biography offers detailed biographical information on personalities who helped shape the development of the German insurance sector.
FAQ
Were there already insurance policies in the Middle Ages?
Yes, in the Middle Ages, guilds and associations existed that offered their members protection in the event of fire, illness or death, an early form of mutual insurance.
When was the first life insurance policy taken out?
The first recorded life insurance policy was taken out in England in 1583, but it was more like a wager. Modern life insurance policies emerged later, for example the Amicable Society in 1706 in England.
What is the Code of Hammurabi in the insurance context?
The Code of Hammurabi (c. 1750 BC) already contained laws that clarified liability issues, for example for builders in the event of building collapses, which can be seen as a precursor to liability insurance.
What role did Bismarck play in insurance?
Imperial Chancellor Otto von Bismarck introduced statutory social insurance in Germany in the 1880s: health insurance (1883), accident insurance (1884) and pension insurance (1889).
What does the Insurance Supervision Act (VAG) regulate?
The Insurance Supervision Act (VAG), first enacted in 1901, regulates state supervision of insurance companies in Germany in order to ensure their financial stability and protect policyholders.
Since when have unisex rates existed in insurance in Germany?
Unisex rates, in which no gender-specific differences in premiums may be made, were introduced in Germany in 2012.
