A rule very similar to modern insurance already existed in ancient Mesopotamia, and it is fascinating to think that Pedro Álvares Cabral’s fleet was insured when he discovered Brazil
It’s not every day that a columnist reaches the milestone of 1,200 articles on a specific topic. This is the 1200th insurance article published in Stadiumevery Monday since May 28, 2001, the date the article appeared why take out insurance.
The safe theme is seen as bland, dry, and doesn’t say much or attract the reader. I confess that I see the subject with different eyes. Insurance fascinates me as a science and as an instrument of daily life, above all for the moral principles which have been the basis of the most effective instrument of social protection for more than 4000 years.
In ancient Mesopotamia there was already a protection rule very similar to modern insurance, whereby the losses incurred by the caravans were divided in proportion to the participation of each member.
The basic principles of modern insurance were applied, for example, in the Middle Ages by the Italian republics, in developing protections for their commercial transactions. In 1350, the king of Portugal carried out two actions which, less than a hundred years later, would lead to the navigations which opened up to Europe an enormous part of the planet, hitherto hidden in the fog of legends. Firstly, he had forests planted to build ships and, secondly, he created a fund to replace ships of all kinds lost due to mishap at sea, financed with 10% of fishing income.
It is fascinating to think that Pedro Álvares Cabral’s fleet was insured when he discovered Brazil. And that, before and after, Portuguese navigations had the support of the fund created in 1350 to replace ships lost along the way.
Equally crucial is the importance of marine insurance, created on the edge of London docks, in a café called Lloyds, for the consolidation of the British empire. And it is even more interesting to see that this cafe is still in operation and is the largest insurance and reinsurance center in the world, responsible for the protection of assets and operational capabilities in the most diverse regions of the Earth.
The underlying principles of insurance are solidarity, mutualism, compassion, sharing of losses and the protection of the group through the sharing of losses among its members. Turned into a business, these principles have led to modern insurance companies, responsible for paying out hundreds of billions of dollars in claims each year.
In Brazil alone, they paid the company nearly half a trillion reais in 2022, in exchange for leasing their products. More than 95% of the indemnities are paid quickly and smoothly, giving the policyholder the resources needed to replace the losses. On the other hand, they are the largest holders of government bonds, allowing the government to finance its debt.
There is no way to find an institution and a scenario with these characteristics and their dry relevance. If possible, I intend to write at least another 1,200 articles showing the peculiarities of this little-known activity.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
