Most of us are aware of a few types of insurance. Among the most common types of insurance are life insurance and health insurance. We should be equipped with at least one of them from a young age. In case any of you are reading and currently looking for insurance plans for children Malaysia, that is such a good take for your children. You might have been wondering, who started the insurance and when it began. That is what we are going to unravel in this post. So, without any further delay, let’s begin going back in time.
Insurance in the United States
In the United States, the first company that is known to underwrite fire insurance was formed in 1735, in Charleston, South Carolina. 17 years later, in 1752, Benjamin Franklin was the one who was responsible for taking care of an insurance company called the Philadelphia Contributionship. At that time, that company was the first to contribute to fire prevention and it even rejected to make assurance which buildings have the most risk to get caught on fire.
As for life insurance, in 1759, the Presbyterian Ministers’ Fund was the first life insurance company to be organised. The many types of insurance increased until the year 1972 when the first stock insurance company was formed. It was known as the Insurance Company of North America. About 17 stock life insurance companies were founded in New York only by the year 1820. However, there were quite a number of failures involving property insurance due to several reasons. But then the insurance companies begin to rise, especially in the 1950s.
Insurance in Japan
In Japan, most private enterprises would be handling the insurance. After World War II, the insurance business somehow rose in the country. Until the end of the 20th century, Japan has ranked the first in the world in forced life insurance. The United States ranked the first in the world for the insurance premiums obtained while Japan ranked just a number behind them which is the second on the list. Until today, the private enterprises would be the main organisers though there are government insurance agencies. The government agencies do handle quite a number of processes. But due to the convenience and facilities that private companies offer, they have become the prominent choice for the citizens.
Insurance in Malaysia
After travelling to the U.S and Japan, we are back to our country in Southeast Asia. The history of insurance in Malaysia is said to begin during the colonial era which was between the 18th century and the 19th century. The British agency houses were the ones who were responsible for acting as agents to insurance companies. Insurance in Malaysia technically rose in the country in the 1950s. After the independence in 1957, the government started to step in to introduce domestic insurance companies. Before, the marketplace was controlled by the foreign firms such as American and British firms. Due to a few failures by the locals and some companies, they later went down in progress. The Insurance Act 1963 was later enacted in order to regulate the industry. Years later, The Insurance Act 1996 was enacted to replace the previous act whereby some important changes have been added up.