History of Insurance in Timeline

Insurance is a risk management tool where one party pays a fee (premium) to another in exchange for protection against financial loss. The insurer agrees to compensate the insured party if a specific loss, damage, or injury occurs. It helps mitigate the financial impact of uncertain events.

1911: National Insurance Act 1911

In 1911, the Liberal government introduced the National Insurance Act in Britain, which gave the British working classes the first contributory system of insurance against illness and unemployment.

1949: Insurance Industry Nationalized in China

In 1949, the insurance industry in China was nationalized and offered by a single state-owned company.

1973: Insurance Companies Act 1973

In 1973, The Insurance Companies Act was enacted.

1978: Market Reforms in China

In 1978, market reforms in China led to an increase in the insurance market.

1982: Insurance Companies Act 1982

In 1982, another Insurance Companies Act was enacted.

1988: California Proposition 103

In 1988, California Proposition 103 is claimed to reduce home insurance rates, while it is blamed by some for reduced availability of home insurance in wildfire-distressed neighborhoods.

1992: Third Non-Life Directive and Third Life Directive passed in the EU

In 1992, the Third Non-Life Directive and the Third Life Directive were passed in the European Union, creating a single insurance market.

1994: Third Non-Life Directive and Third Life Directive effective in the EU

In 1994, the Third Non-Life Directive and the Third Life Directive, passed in 1992, became effective, creating a single insurance market in Europe.

1995: Insurance Law of the People's Republic of China passed

In 1995, a comprehensive Insurance Law of the People's Republic of China was passed.

1996: Insurers take active role in loss mitigation

Around 1996, insurers began to take a more active role in loss mitigation, such as through building codes, after historically not aggressively pursuing such measures.

1998: Formation of China Insurance Regulatory Commission (CIRC)

In 1998, the China Insurance Regulatory Commission (CIRC) was formed with broad regulatory authority over the insurance market of China.

1999: IRDA Act 1999

In 1999, as per the section 4 of IRDA Act, the Insurance Regulatory and Development Authority (IRDA) was constituted by an act of parliament in India.

2002: Insurance patents issued

In 2002, 15 insurance patents were issued in the United States.

2003: Underwriting loss for property and casualty insurance companies

In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003, but overall profit for the same period was $68.4 billion, as the result of float.

2004: Hartford pays Bancorp for patent infringement

In 2004, The Hartford insurance company paid $80 million to Bancorp Services to settle a patent infringement and theft of trade secret lawsuit for a type of corporate owned life insurance product invented and patented by Bancorp.

2005: Financial Services Authority took over insurance regulation

In 2005, The Financial Services Authority took over insurance regulation from the General Insurance Standards Council in the United Kingdom.

2005: First US Insurance patent

In 2005, The first US insurance patent was granted, which concerned coverage of data transferred over the internet.

2006: Insurance patents issued

In 2006, 44 insurance patents were issued in the United States.

July 2007: FTC report on credit-based insurance scores in automobile insurance

In July 2007, the US Federal Trade Commission (FTC) released a report presenting the results of a study concerning credit-based insurance scores in automobile insurance, finding that these scores are effective predictors of risk. The report was disputed by consumer advocacy groups.

2007: U.S. industry profits from float totaled $58 billion

In 2007, U.S. insurance industry profits from float totaled $58 billion.

2008: Berkshire Hathaway paid to hold float

In 2008, Berkshire Hathaway was paid $2.8 billion to hold its float, according to Warren Buffett.

2008: International Network of Insurance Associations becomes active

In 2008, the International Network of Insurance Associations (INIA), an informal network, became active.

2009: Patent application for insurance company change method

In 2009, A patent application describes a method for increasing the ease of changing insurance companies was posted.

2009: Warren Buffett Comment on Float

In 2009, Warren Buffett wrote to investors that Berkshire Hathaway was paid $2.8 billion to hold its float in 2008.

2012: Reforms to warranty and other aspects

As of 2012, reforms to warranty and other aspects were under discussion in the United Kingdom.

2012: Global Federation of Insurance Associations Founded

In 2012, the Global Federation of Insurance Associations (GFIA) was formally founded to increase insurance industry effectiveness in providing input to international regulatory bodies and to contribute more effectively to the international dialogue on issues of common interest.

2014: University of Tennessee research on insurance

In 2014, University of Tennessee research found that company staff recognized the importance of insurance but were too distant from its provision or cost to relate to company insurance needs.

2017: Bank of Russia and Yandex joint project

In 2017, the Bank of Russia and Yandex implemented a project where a check mark in Yandex search indicated that a company's financial services were offered by a legitimate insurance entity.