A Brief History of Insurance in the USA

Here in the USA, we have the great Benjamin Franklin to thank for introducing us to insurance as we know it today.    In 1751, Franklin and the Union Fire Company met with other Philadelphia fire-fighting companies to discuss the formation of a fire insurance company.  Following their meeting, the Philadelphia Contributionship was formed, which went on to become the first successful fire insurance company in America.

Franklin himself was a member of the board of directors, and between the other seventy-odd members and himself, that agreed to make equal payments to the contributions, which would be used to pay for losses any member would sustain through fire to his property.

The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire set new standards for building houses across the country.  Because they refused to cover any houses that they deemed to be a fire hazard, homeowners began to look at different ways to construct their developments.

Some seven years after the inception of The Philadelphia Contributionship, Benjamin Franklin became instrumental in getting the very first life insurance company, the Presbyterian Ministers’ Fund, off the ground. Although the church struggled with the idea of putting a price on the value of human life, they were agreeable that widows and orphans should be protected following a loss.

The advent of the industrial revolution changed the game yet again, as new products were needed to protect workers and employers during the industrial revolution.

The insurance industry in America has grown exponentially as and when new types of risks were identified and substantiated.  As times have changed, the insurance market has risen to meet both the individual needs of homeowners and car drivers and the legislative requirements dictated by individual states and federal law.

Government Safety Nets and Regulations

The introduction of the Social Security Act in 1935 encroached upon the territory of some of the private insurance companies by offering unemployment compensation and retirement benefits for the general public.

World War II also brought more uncertainty with wage freezes and a lessening workforce that meant employers needed to offer a range of benefits to attract those of working age that were still in the country.  Insurance companies were quick to offer group life and health insurance for workers, leading to further federal regulation across the industry.

As the world around us continues to change, insurance markets evolve to offer coverage that matches our lifestyles. Everything from travel insurance to cancellation insurance will keep our leisure time protected, while there are thousands of policies available to protect our homes, our health, our cars, and our employment status.  All of which are now closely regulated to ensure that we are protected when we need it the most.

First Class Insurance Agents in Florida

If you are looking for comprehensive insurance coverage, for competitive prices here in Florida, our agents at The Sena Group can help.

Call us today at 561-391-4661 to find out more.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.

The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487