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92
THE EMERGENCE OF THE FIRST INSURANCE ORGANIZATIONS IN THE
GLOBAL ECONOMY
Murodqulov Shoxrux
Samarkand Institute of Economics and Service
Rafiyeva Zarina Xusanovna
Teacher
Abstract:
This paper examines the process of emergence and development of the first insurance
organizations in the global economy. The article analyzes the historical background of the
emergence of insurance as a form of risk protection, starting with ancient civilizations (Sumer,
Babylon, Ancient Egypt) to the formation of the first professional insurance companies in
Europe. Particular attention is paid to the development of marine insurance in the Middle Ages
and the creation of such organizations as Lloyd's of London. It also examines the socio-economic
conditions that contributed to the institutionalization of insurance activities and the formation of
its legal framework.
Keywords:
insurance, history of insurance, insurance organizations, marine insurance, Lloyd's,
risks, economic protection, Middle Ages, insurance market, legal regulation
Life insurance originated in Ancient Rome - in professional unions and colleges. The main goal
then was to provide decent funerals for members of these unions and colleges, since it was
believed that if a decent ceremony was not provided to the deceased, he would become an
unfortunate sign. Thus, anyone who wanted a decent funeral could become a member of the
community and be sure of organizing a decent ceremony, even in the absence of relatives, since
the community took on all the troubles of organizing the burial. It is interesting that the
accumulated contributions could not be collected as debts of the deceased. The beginning of
existing life insurance is the founding in 1706 by the Englishmen W. Talbot and T. Allen of the
"Friendly Society of Perpetual Guarantee", this organization is the first life insurance company in
the world. The essence of the activity was as follows - each member of the society was obliged
to buy out the company's shares in the agreed amount, and the payment must be made annually.
At the same time, the volume of shares purchased depended on the age of the participants. At the
end, the contributions were distributed among the widows or children of the deceased members
of the club.
On the one hand, the liberalization of international trade in insurance services is a positive
moment in the development of the national insurance market of developing countries: clients of
insurance companies gain access to new high-tech insurance products. On the other hand, ill-
considered steps to open the national insurance market may lead to the loss of any significant
share of participation of national companies in the implementation of insurance coverage on the
territory of the state. Local insurance companies in developing countries with a small level of
capitalization are unlikely to be able to withstand open competition with the largest transnational
companies. Therefore, given the role of insurance in the national economy in modern conditions,
it is necessary to take a balanced approach to the issue of liberalization of the national insurance
market.
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The main reason for the significant reduction in restrictions on access of foreign insurers and
reinsurers to the markets of countries with developing and transitional economies is the process
of expanding the participation of these countries in global economic relations. In the global
economy, interstate integration agreements determining the international conditions of trade in
insurance services are acquiring an increasingly important role. By joining the General
Agreement on Trade in Services (GATS), each state undertakes to comply with certain
requirements regarding the regulation of international trade in services. The main objective is to
eliminate the existing discrimination of foreign insurance market operators compared to national
service providers in offering insurance services to the national consumer. Therefore, it is
important to understand what requirements are imposed on a state intending to join such a
system of multilateral agreements, as well as to measure the required and currently possible
volume of national obligations of the state in the field of insurance services in connection with
accession to the World Trade Organization.
But the foundation of modern life insurance, on which life insurance schemes now operate, was
laid a little later in 1762 by Edward Rowe Morse, who was able to found the Society for
Equitable Guarantees of Life and Survival. The company worked on the principle of mutual
insurance, for the first time introduced the principle of the size of insurance premiums depending
on age and based on the mortality rate, and the person making such calculations was called an
actuary. With the growth of cities and the emergence of large settlements, the risk of loss or
damage to property from fires and other natural disasters increased, which prompted people to
unite for joint actions to prevent danger. Economic measures began to be included in measures to
eliminate the consequences of negative events for a person. Thus, in 1310, in the city of Bruges
(Germany), the Insurance Chamber was established, which carried out operations to protect the
property interests of merchants and craft guilds. Since most buildings at that time in human
history were made of wood, fires were the greatest disaster for people. One of the first forms of
fire insurance was a special levy to help those whose property was burned or damaged. For
example, after the fire of 1666, which destroyed almost all of central London, the Fire Policy
Society was established to insure houses and other buildings. In 1667, the Norwegian
Brandtkassa was established in Christiania (Oslo). A number of insurance companies emerged
throughout Europe within a few years.
With the development of the insurance institute, when the economic state of society no longer fit
into the framework of ordinary and general civil law, life urgently required special legal
provisions in the field of insurance. At the beginning of the 17th century, the first legal
provisions on insurance transactions began to appear in the history of the economy, although
they had not yet acquired independent significance, but were subordinated to general and
homogeneous transactions of civil law. In fact, it could not be otherwise, because the insurance
issue at that time was not yet a widespread phenomenon, and therefore did not have a more or
less solid economic basis either in science or in practical life. At the present stage, we are
witnessing an increase in the production, distribution, sale and consumption of insurance
services. This is due to a number of objective reasons. Firstly, the deepening contradictions
between human life and its environment, increasing interference in the environment, the
intensification of the consequences of natural disasters and cataclysms due to an increase in
population density and the presence of a complex life support infrastructure. In addition, the
development of new technologies, complex production processes, mechanization and automation,
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the use of chemical and physical reactions that increase the risk of damage and destruction of
fixed assets. Secondly, the presence of social contradictions caused by the joint activities of
various groups of people to create and use material and non-material goods, the distribution of
natural resources between them, and the uneven development of various countries and regions.
These contradictions cause negative consequences of their manifestation, which are
unpredictable in time, random, unforeseen, giving rise to the need of society and individuals to
compensate for possible material losses. Along with this, trends have formed towards an increase
in the general level of the world economy, the growth of integration of production and the
service sector. These factors lead to an increase in social groups of people who have a sufficient
amount of material and non-material goods, who need insurance and have a sufficient level of
income to pay the insurance premium. Modern telecommunication technologies, progress in
communications and computing technology allow insurance companies to operate statistics more
effectively, more accurately calculate insurance risks, popularize and expand their activities. All
this ensures the penetration of insurance into all spheres of life in modern society, the integration
of insurance with many sectors of the economy, and the formation of a global insurance space.
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