Insurance - How it Started

By Raymond McMillan

The idea of writing this book was to capture the humble origin of insurance from a casual chat in a coffee house (not in a court or parliament), then the various case laws which cemented the fundamental principles for example – Life Assurance Act 1774, cemented the principle of Insurable interest as necessary in EVERY contract of Insurance.

We continue to observe its evolution through the years to today’s position where Insurance is a regulated industry and recent ACTs in 2012 and 2015, now shifts the responsibility to request material facts concerning risks to the Insurers and away from the requirement under the Marine Insurance Act 1906 which was the standing position for over 100 years until the 2012 & 2015 Acts.

Finally, we cannot ignore the advent of the Information Technology age where policies are sold and bound in minutes over the internet or via call centers as well as claims payment being concluded over a telephone and monies being transferred directly into clients bank accounts without any face to face meeting with the insurer. We also cannot ignore the new distribution channels where supermarkets and banks now sell insurance. Can you imagine the industry in say 5 years’ time?

• Language: English
• Publisher: Publishdrive
• Release date: Apr 18, 2021
• ISBN: 9781527286061

Book preview

INSURANCE

HOW IT

STARTED

Raymond McMillan

Copyright © 2021 by Raymond McMillan

All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the author.

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Table of Contents

Introduction

1. Definition

2. Origin of Marine Insurance:

3. The Great Fire of London:

4. Lloyd’s of London:

5. The Principles of Insurance:

6. Proposal Forms:

7. Claim Forms:

8. The Policy Document:

9. Sharing the Risk:

10. The Riot Damages Act:

11. The Rehabilitation of offenders Act 1974 (ROA 1074):

12. The Data Protection Act 1998:

13. The Enterprise Act 2016:

14. The Insurance Premium Tax (IPT):

15: Reinsurance:

16. The Young Driver Policy:

17. Insurance Brokers:

18. The Policy Contract Cover:

19. Takaful Insurance:

20. Affinity Groups:

21. Products Liability:

22: Proximate Cause:

23: Guaranteed Asset Protection (GAP) Insurance:

24. Terrorism:

25. Flood Re:

26. Policy Renewal:

27. Direct Insurers / Indirect Insurers:

28. British Insurance Brokers Association (BIBA) & Association of British Insurers (ABI):

29. The Chartered Insurance Institute (CII):

30. COVID 19:

INTRODUCTION

This audiobook is narrated by Raymond McMillan, a 30-year-old Insurance Executive, and CII Approved Trainer. It was made to capture the changing and evolving nature of insurance from its start way back in the 1600s, capturing its origin, growth, and development.

It is highly recommended for:

Newcomers to the insurance industry.

Staff performing client-facing roles as well as those interacting with Insurance Intermediaries.

Compliance officers reporting to the industry regulators and managing company complaints.

Managers and supervisors who are based at Call Centers.

Anyone employed in support functions including human resources, information technology, and finance.

Persons in the legal and or estate agency sectors who in some way interact with insurance contracts as part of the role.

1. Definition

There are many definitions been offered; however, a clearer meaning is where Insurance is defined as a social science providing compensation in the event of misfortune. This compensation can be provided by a state enterprise but more widely by commercial enterprises where the terms of which are usually agreed in advance.

2. Origin of Marine Insurance :

In the mid-1600s in the city of London, mariners usually sat together drinking coffee in a coffee house. A chap called Edward Lloyd was sharing coffee with others in a coffee house on Lime Street in London. Edward