Smart Choose Insurance by Studying Insurance History

What will come to your mind when you hear the word insurance? Insurance can be categorized as one of the most important things in our lives today. Insurance can be a protection for all of our assets, such as our home, car, business or even our life.

Many people are in a rush to choose insurance without them knowing the basic functions of insurance and the benefits that we will get from the insurance we have. Not a few cases of fraud under the guise of insurance that happen to many people today and of course this can happen because many people do not understand what insurance is. Therefore, you should know in advance about insurance from studying the history of insurance itself.

The Beginning of Insurance

We can find out the history of insurance by looking at the beginning of insurance in this world. According to some sources, insurance has existed since the days of the Greek Empire. The concept of insurance has evolved since Roman times and Alexander the Great's reign. This concept is seen when a member of an association dies or is sick and other members collect money to fulfill or provide compensation to members who are affected by the disaster.

How about the insurance concept in Indonesia? In Indonesia, insurance actually entered during the Dutch colonial era. This is evidenced by the existence of insurance companies that have been known since time immemorial such as Bumiputera Insurance, Jiwasraya Insurance, Jasa Raharja Insurance and other insurance.

These insurance companies were not only known in the past, but until now we can still find these companies. There are many people who choose insurance from these companies because of their long experience and reputation. However, some people in this modern era have switched to companies that are much more modern in concept and keep up with the times and conditions.

Purpose of Insurance

After we know about the origin of insurance in the world and in Indonesia, we need to know the basic understanding of insurance itself. Insurance itself is an agreement made between two or more parties where one party will bear the cost and the other party will be the recipient of the insurance premium. The insurance premium recipient must pay the premium every month to the party who bears the reimbursement if the premium recipient experiences a disaster or finds damage to all things that have been agreed to be covered by the insurance company. Then what are the real purposes of insurance?

• Insurance will provide guarantees for protection and also the risk of loss that will be experienced by the recipient of the insurance premiumInsurance will also help so that everyone does not have to overly secure their assets or everything they have. This means that insurance provides a more effective solution to protect your goods or assets.
• Insurance will function as savings which, if not used, will be returned within a certain period.
• Insurance provides reimbursement of costs when the recipient of the insurance is sick, has an accident, loses assets or goods and so on.Insurance for business will save you from the danger of bankruptcy that many entrepreneurs fear.

Currently insurance itself has developed very rapidly and we will have no trouble choosing insurance and insurance products that suit our needs. The most important thing to note is to always look for the best company to provide insurance and choose insurance products that suit our ability to pay. By knowing the history of insurance, our knowledge of insurance will increase.