You might think insurance is a relatively modern concept, but it turns out it’s been around a lot longer than most people imagine. In fact, we can trace the origins of insurance all the way back to ancient Babylon.

The oldest known insurance contract can be found in the Code of Hammurabi, a Babylonian set of laws from around 1750 BC. Among its 282 laws, it includes the first written mention of liability—essentially laying the groundwork for insurance as we know it today. Traders at the time had agreements with insurers, paying a premium to ensure they’d be compensated if their ships were lost at sea. So, in a way, haulage was one of the first protected industries. Later, the ancient Greeks took this a step further with the Law of General Average around 1000 BC, which required all traders to chip in if one lost their cargo—a very early form of communal insurance.

Fast forward to the Middle Ages, when guilds were established to protect the interests of craftsmen and traders. Since buildings were mostly made of wood, fires were a constant threat that could destroy businesses. Guilds offered early forms of fire insurance, helping members rebuild and even covering their income until they were back on their feet. Guilds also introduced some of the first disability and life insurance policies, providing support if members were injured or if their families were left behind. This early insurance was especially popular among agricultural workers, who faced the risk of crop failure or poor seasons, offering them a financial safety net and encouraging more people to join in trade. This period marked a turning point, making insurance accessible to working people rather than just the wealthy.

Then came the Great Fire of London in 1666—a pivotal moment in insurance history. The fire swept through 400 acres of the city in just four days, destroying homes, businesses, and livelihoods. Not long after, fire insurance providers appeared, offering protection in case another disaster struck. Insurers issued plaques to their customers to display on their properties, which helped their fire brigades identify which buildings to save in a blaze. (If a building didn’t have a plaque, it would be left to burn.) Over time, insurers agreed to fight fires on any insured property, essentially creating the first fire service.

During the Renaissance, business deals were often made in bustling coffee houses rather than formal offices, with Edward Lloyd’s coffee house in London becoming a hub for marine trade. Lloyd’s coffee house was so popular that Lloyd even started his own newspaper, The Lloyd’s List, to keep everyone updated on shipping news.

One lesser-known, darker side of insurance history lies in the transatlantic slave trade. With the rise of colonies in the Americas, enslaved people became part of the insured “cargo” on ships. Lloyd’s coffee house was a key meeting point for discussing this trade, and even after Britain outlawed slavery in 1807, it remained legal for British ships to transport enslaved people. Research by Underwriting Souls, including Lloyd’s digital archives, reveals the lasting financial impact of the slave trade on the insurance world.

Insurance became more common as society developed, but with it came attempts to exploit loopholes. By the late 18th century, people were betting on others’ lives by taking out life insurance policies on sick neighbours, patients, or even disliked colleagues.  A few would take out life insurance policies on people they ended to kill themselves, guaranteeing their claim. To stop this gambling trend, the Life Insurance Act of 1774 introduced strict rules, including:

• Insurance could only be taken out on people you had a genuine interest in, as judged by the courts. This means their life had to impact you in a meaningful way, usually financially, i.e. a spouse or a business partner.
• Policies now required the name of the insured person. Strangely, this wasn’t needed before, which allowed people to pick complete strangers for their policies.
• Payouts couldn’t exceed the insured’s true value to the policyholder. If your business partner contributes £5000 per year towards your business, then your claim would be capped at that.

In the Victorian era, life insurance boomed, reflecting society’s fixation on mortality (thanks in part to Queen Victoria’s own mourning for her late husband). Funerals became elaborate affairs, and the shame of being unable to afford one weighed heavily on families. “Penny insurance” became widespread—just a penny a week would cover a family member’s funeral expenses.

As industrialisation picked up, accident insurance emerged. The railways, in particular, were dangerous, with frequent accidents leading to lost limbs or lives. For working families, such a loss could mean destitution or even a move to the dreaded workhouse. Accident insurance provided a lifeline, with premiums varying based on carriage safety and class, enabling families to have some financial security. During both World Wars, military insurance became essential, providing for soldiers and supporting their families if the unthinkable happened.

From ancient Babylon to today, insurance has helped societies manage risks and protect their livelihoods. Now, it’s an essential part of the global economy, covering everything from health and property to the complex challenges faced by modern businesses.