Insurance What is Insurance? Insurance is a form of contract whereby periodic payments (also known as insurance premiums) are made to an insurance company. It is a contract in which one party agrees to pay for another party’s financial loss resulting from a specified event.
History of Insurance Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. www.cheapinsurance.co.za