10/10/2023

“We cannot all advance if half are left behind”

The essence of insurance lies in cooperation. Insurance operates under the principle of solidarity, where all policyholders contribute to a common fund through premiums. This fund guarantees that, if a member suffers an accident, they can receive compensation thanks to the collective contribution.

This concept did not begin recently. In the 16th century in the Alps, farmers formed mutual aid societies to support each other in case a child fell ill or a cow got lost. However, long before that, in ancient Babylon, we find mentions of the “high risk loan” in the Code of Hammurabi, the precursor of marine insurance. Chinese merchants, aware of the risks, distributed their goods among several ships to minimize losses. If a ship was wrecked, the loss was spread out among many merchants, preventing the total ruin of one.

Moving forward in history, during the 17th and 18th centuries, governments sought financing for their wars through citizen quotas. In exchange, they guaranteed an annual income to taxpayers until their death. Today, this idea persists with modern insurers. For a premium, insurers offer coverage in various situations such as unemployment, unexpected illnesses, disability, old age and even death.

In summary, the central purpose of insurance has been, and continues to be, to offer solutions and support in the face of adversity, evidencing the power of cooperation and solidarity.

 

Depósito Legal M-41589-2012 Edita: E2K Global