The fascinating time travel of security: How long have insurance policies actually existed?
7 Apr 2025
5
Minutes
Katrin Straub
CEO at nextsure
Have you ever wondered how old the concept of insurance is? The answer goes back more than five thousand years. Discover how the desire for security evolved from simple beginnings to the complex world of insurance we know today.
The topic in brief and concise terms
The earliest forms of insurance as risk communities can be traced back to 3000 BC among Phoenician sea traders.
The Hamburger Feuerkasse from 1676 is the oldest surviving public insurance company in the world.
The introduction of social insurance by Bismarck (health 1883, accident 1884, pension 1889) revolutionised social security in Germany.
Uncovering origins: First risk sharing over 5,000 years ago
The concept of insurance is not a modern invention. As early as 3000 BC, Phoenician sea traders used a form of sea loan. This loan covered the loss of a ship, for example, due to a storm. If the ship and cargo arrived safely, traders paid high interest to the lenders. In ancient Babylon, around 1750 BC, there was the Code of Hammurabi. This already contained regulations similar to today's liability principles, such as those for 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 security over many centuries. The development continued in the Middle Ages.
Harnessing Medieval Solidarity: Guilds as Precursors to Modern Policies
In the Middle Ages, guilds and guilds developed from ancient Germanic communities. From the eighth century onwards, they 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 Hamburger Feuerkasse, founded on 30 November 1676, is considered the oldest still existing public insurance company in the world. It was established following devastating city fires, such as the Great Fire of London in 1666, which highlighted the need for such safeguards. The first marine insurance contract on German soil was concluded in 1588 in Hamburg. These commercial approaches further professionalised risk management. Learn more about what an insurance policy is and its historical significance. The next stage was the development of specific insurance branches.
Driving professionalisation: The first insurance companies and sectors are emerging
The first modern life insurance company, the Amicable Society for a Perpetual Assurance Office, was founded in England in 1706. Another early life insurance scheme based on mathematics was established in England in 1765. In Germany, Ernst Wilhelm Arnoldi founded the Gothaer Fire Insurance Bank in 1820. Seven years later, in 1827, the Gothaer Life Insurance Bank followed as the first German life insurer. The Prussian General Land Law of 1794 already included 425 insurance regulations. These regulations demonstrated a growing need for legal structure. The industrialisation of the 19th century accelerated the formation of many new insurance companies. The complexity of 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 contributed two-thirds, while employers contributed one-third of the health insurance payments. In 1884, this was followed by accident insurance for businesses. The old-age and disability insurance was introduced in 1889 for individuals with an annual income below 2,000 Reichsmark. These laws established a legal entitlement to benefits for the first time. Pensions were paid out from the age of 70 at that time. These compulsory state insurances formed the foundation of the German welfare state. The legal framework for the private insurance industry followed soon after.
Establishing legal frameworks: The modern insurance industry is taking shape
The Insurance Supervision Act (VAG) and the Insurance Contract Act (VVG) established the modern legal framework in 1901 and 1908. The VAG aimed at the financial stability of insurers and the protection of policyholders. During World War II, the 'Reichsgruppe Versicherungen' advertised with community slogans. After World War II, the insurance industry in West Germany recovered quickly, supported by the EEC from 1957 onwards. State-sponsored pension schemes like the Riester pension (2002) and Rürup pension (2005) were added. Unisex tariffs were introduced in 2012, eliminating gender-specific premium differences. Today, digitalisation shapes the industry with numerous mandatory insurances and optional covers like life insurances. The development is, therefore, a continuous process.
History shows how important sound protection 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 checked free of charge and receive concrete suggestions for optimisation.
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 a significant 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 offer insights into historical documents relevant to research on insurance history in their library newsletter.
The Archive Portal-D enables access to archival material from German archives that also includes sources on the history of the insurance industry.
The Employer Association of Insurance Companies in Germany (AGV) provides information on the history of the association and the social partnership within the insurance sector.
The German Biography provides detailed biographical information on individuals who influenced the development of the German insurance industry.
FAQ
Were there insurances in the Middle Ages?
Yes, in the Middle Ages, there were guilds and craft associations that offered their members protection in case of fire, illness, or death, an early form of mutual insurance.
When was the first life insurance policy issued?
The first recorded life insurance was established in England in 1583, but it resembled more of a bet. Modern life insurances developed later, such as the Amicable Society in 1706 in England.
What is the Code of Hammurabi in the context of insurance?
The Code of Hammurabi (circa 1750 BC) already included laws that addressed 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?
Reich 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 the state supervision of insurance companies in Germany to ensure their financial stability and the protection of policyholders.
Since when have there been unisex insurance rates in Germany?
Unisex tariffs, where no gender-specific differences in premiums are allowed, were introduced in Germany in 2012.
