The concept of life insurance dates back to ancient times, although in the form we know today it began to take shape in the 17th century in England thanks to the establishment of the insurance association and mathematical work on its applicable management. The mathematical foundations of life insurance are based mainly on the risk controller and probability theory, statistics, probability theory and financial mathematics. The development of the idea of ​​life insurance can be divided into several stages:

Antiquity and the Middle Ages:

• Ancient China and Babylon (c. 3000-2000 B.C.): The first forms of “insurance” appeared in ancient civilizations, where merchants shared the risk of loss through common disaster funds. Although these were not strictly life insurance, they were the first attempts at risk sharing.
• Roman funeral colleges (around the 1st century AD): In ancient Rome, there were the so-called “college”, i.e. associations that, for a monthly fee, provided their members with funds for funerals and support for the families of the deceased. This was the seed of the idea of ​​support after death.

17th century – Modern insurance:

• England, 17th century: The development of modern life insurance is largely attributed to England. In 1706, the first life insurance company was established – The Amicable Society for a Perpetual Assurance Office in London. It was founded by William Talbot and Sir Thomas Allen. This society offered the first life insurance in the modern sense, where premiums paid by members were used to pay benefits to the families of the deceased.

18th century – Mathematical foundations:

• Edmond Halley (known for Halley’s Comet) in 1693 developed a mortality table, which allowed for a more accurate assessment of the risk associated with human life expectancy. This has enabled the development of more precise and mathematically based life insurance systems.

19th century – Further development of the idea of ​​life insurance

• In the 19th century, life insurance began to become popular throughout the world, especially in the United States and Europe. The development of actuarial science (insurance mathematics) meant that companies could assess risk more accurately and offer more diversified insurance products.

How much should you insure yourself for is one of the most important questions before buying a life insurance policy, it is worth thinking about and analyzing issues regarding our individual financial situation, the information we have already written about in another blog on our website may be helpful https://www.ubezpieczenianazycie.ie/polski/ubezpieczenie-na-zycie-na-jaka-kwote-sie-ubezpieczyc/