History and Development of Insurance

Insurance affects us all and it is a vital part of the economy compensating for the extremes of catastrophic events to the general risks we all face in our community  such as Accidents, Fire and human related events such as Crime . Every aspect of life can benefit from insurance, whether related to business activity or the daily lives of individuals.

As long ago as two thousand years BC, Chinese and Babylonian traders practised early methods of transferring or distributing risk. Chinese merchants negotiating treacherous rapids on the Yangtze River redistributed their wares across many vessels to limit the potential loss due to the capsizing of a single vessel.

The Babylonians developed a system that was practised by early Mediterranean sailing merchants. If merchants took out a loan to fund a shipment, they paid an additional sum in exchange for the lender’s guarantee to cancel the loan should the shipment be stolen.

Achaemenian monarchs were the first to insure their people – and made it official by registering the insuring process in governmental notary offices each year at the start of the Iranian New Year.

The inhabitants of Rhodes invented the concept of the “general average”. Merchants whose goods were being shipped together paid a proportion of the premium, which was used for reimbursing a merchant whose goods were destroyed in a storm or a sinking.

Insurance contracts were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates.

Insurance became far more sophisticated in post-Renaissance Europe, and specialised varieties developed.

London’s growing importance as a centre for trade boosted demand for marine insurance. Lloyd's coffee house became recognised as the place for obtaining marine insurance. From its first beginnings in Edward Lloyd’s Coffee House in 1688, Lloyd’s has been a pioneer in insurance. Starting with its roots in marine insurance, Lloyds has grown over 300 years to become the world’s leading market for specialist insurance.

From 17th century shipping and Lord Nelson’s victory at the Battle of Trafalgar, through the devastation of the San Francisco earthquake in 1906, and on to the emergence of space satellite technology in the late 20th century, the story of Lloyds is both a long and an interesting one

Insurance as we know it today can be traced to the Great Fire of London, which destroyed 13,200 houses in 1666. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England’s first fire insurance company, The Fire Office, to cover brick and frame dwellings.

In fact it was these same companies that supplied the first Fire Brigades and an Insured building was stamped with a “Fire Mark” which distinguished which Fire Brigade would attend. Now the Fire Brigades have merged  together and are run by Government Authorities and in some states are still funded by Insurers through the application of a Fire Service Levy. The “Fire Marks” are now highly sought after collector’s items.

So from Fire and Marine Insurance, gradually new insurance products have emerged either through necessity or public interest. Motor Vehicle Insurance with the invention of the automobile. Burglary Insurance due to Crime. Business Interruption Insurance due to the consequential loss of income following a Fire. Liability products have developed from certain court decisions and in more recent times, government legislation.

 Insurance is always changing and developing. The emergence of Intermediaries between the client and the insurer to assist in explaining and advising how to protect yourself against risks that we all face remains in demand. This is where CPR Insurance Services fits in. We can advise you and keep you up to date with these changes. We will save you the time needed to decify these differences. We can save you money by accessing all the Insurance market to obtain the best cover at the best price.  CPR – Experts who will save you.

The Value of Insurance to Society

Latest News

Will you lose the value of a Broker?

If you listen to the Podcast on this link you will here Robert Cooper explain to his Accountant why Small Business stands to lose if Insurance Brokers are not there to advise start up businesses and established businesses about the risks their occupation carries and how they can deal with them. Simply because they will not want to pay the fees that would be charged. Currently instead, Insurance Companies pay the Broker after the Insurance has been placed with them. Perhaps the premiums will appear a bit cheaper in the first year? Then they will question the fees an Insurance Broker puts on top and finds they can go to the Internet and obtain the same cover at the same price. However, they will not have the constant advice and claims advocacy that comes with an Insurance Broker. The big loser is definitely the Consumer as direct insurers give absolutely no advice, only price.

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Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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