The origins of insurance

C) Prepare a short talk about the origins of insurance.

B) Write down five questions about the text.

A) Read the text and name the facts from the text which are new to you.

IV READ AND DISCUSS

B. COMMUNICATIVE SITUATIONS

a) You are at the conference. The subject is“Insurance is an important sphere of a country’s financial economic activity”. Open such questions:

- What is the main tasks of insurance?

- How can the risks be covered in different societies?

- What role can the national government play in the insurance market?

b) Round-table discussion. The question on the agenda is “Ukraine’s insurance market and perspectives of its development.” You may include the following points in your discussion:

- the history of development and legislative base of Ukraine’s insurance market;

- the main tasks of Ukraine’s insurance market;

- perspectives of the insurance market in Ukraine. The problems faced by insurance companies (objective and subjective factors).

c) Discuss with your friends why business needs insurance. Speak about different types of business insurance.

Insurance - the oldest category of socio-economic relations between human beings, which is an integral part of industrial relations.

The original meaning of insurance associated with the word «terror». In particular, the term "insurance" is sometimes used in the sense of support in any case, guarantee success in anything, etc. Currently, the term is increasingly used in the sense tool to protect property interests of individuals and entities. Initial forms of insurance emerged in ancient. According to come down to our time sources, even in the slave society was an agreement, which can be seen as features of the insurance contract. These agreements included real estate, trade, loan transactions, as well as the maritime industry. The thrust of these agreements was to attempt to apportion among those interested in the transaction, the risk of possible damage to ships and cargoes at sea.

For example, on the island of Rhodes in 916 BC adopted Ordinance, which provides distribution system damage in the event of general average. The principles used in this document, preserved to this day. The basic principle of insurance is only protecting against the risk, and it is by no means can serve as enrichment. At the core of emerging, primary insurance has been a collective mutual assistance, which ensured mutual obligations.

With the growth of cities and the emergence of large settlements increased risk of death or damage from fires and other natural disasters, and quite understandable desire of people to unite for joint action to prevent danger, the elimination of its consequences, including economic measures. Thus, in 1310 in the city of Bruges (Germany) was established «Insurance House», which conducted the operation to protect the property interests of merchants and craft guilds.

In an era of geographical discoveries there is rapid surge in shipping and international trade. The emergence of new markets for trade increases risk, and the growing need to protect the property interests. When you send a land trade caravan or in maritime transport, construction or production-sharing, people agree that in the event of loss or damage to property of one of the participants in the joint venture its damage discard between all the parties in proportion. It was the principle of mutual insurance. In addition to the property insurance as an object of business, was the development of insurance against fire. The simplest form of such insurance has been a special collection to assist those whose property is burned down or damaged.

It should be noted that with mutual insurance members such commonwealths not intended to profit from this type of activity. They care only about reducing the harm that might be caused by them.

Initial commonwealth co-insurance, over time, become transformed into a commercial professional insurance companies, which are based on the principles of entrepreneurship, and benefit from such operations.

With the development of the economy, increase in the number of property interests growing number of insurance companies increased their working capital and investments in other sectors of the economy. By the early 60-ies of the XVIII century. in the West, there were already about 100 species of property and life insurance. The idea of insurance fully meet the needs of a developing economy, and insurance quickly spread to all spheres of human activity. The forms and methods of Insurance periodically change depending on the needs of time. For example, in 1706 it established the first life insurance company, and in the XVIII - XIX centuries already there are new kinds of insurance services such as insurance animals, from burglary, financial losses, accidents and other types of insurance.

Words you may need:

to attempt to apportion – намагатися розподілити

collective mutual assistance – колективна взаємодопомога

mutual obligations – взаємні зобов’язання

settlemen t – поселення

elimination of consequences – усунення наслідків

venture – ризикований захід

to assist – допомагати

Дата добавления: 2014-12-23