Insurance at the very beginning was the help of human society. This form of helping each other is typical for natural economy where people help in case when bad things happen to members of their community. You will get the same help in future. Such form of help is still in poor countries where people live in conditions without modern economy and financial instruments.

The Great Fire of London in 1666 was milestone and stressed the importance of insurance. More than 13,200 houses were destroyed and after that disaster Nicholas Barbon opened his office and he started to insure buildings. ”The Fire Office” which started to work in 1680 was the first insurance company in England which insured brick and frame buildings.

In the United States of America the first insurance company was formed in 1732 in Charles Town” /today Charleston /, state South Carolina.

Benjamin Franklin was person who popularized and standardized insurance. He formed the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire in 1752. They refused to insure wooden houses because of great risk of fire and they helped also in fire prevention.