Public petition for the first insurance company.
People’s desire to form a firm to reduce poverty.
Protection of income in case of disease of breadwinner.
Form life insurance companies for families to buy policies.
2013: motivation to buy life insurance hasn’t changed much (financially protect
Three main concerns of Canadians
1. Living too long (depletion of savings): pension
2. Dying too soon (sudden loss of income): permanent life insurance
3. Illness, accident and disease (temporary loss of productivity): health insurance
First life insurance policy
Richard Martin estimated the cost of the loss of his company’s manager ($383).
(cost of death: train new person, business drop down, loyal customers turn to
Friends in country club waged against the manager’s death (Richard Martin pays 8%
(if the manager dies in 12 months, the country club guys pay 383.)(manager dies,
Martin gets paid.)
Insurer: country club guys
Insured: Richard Martin (policy holder)
Life insured: the manager
(usu. Life insured = policy holder)
Premium: 8% of 383
1583-1757 long time no development of insurance
1. people were not clear between gambling and insurance, and superstition and
2. Lack of knowledge on death rate (age increase, death rate increase), mortality
tables/rates were not accurate (price of premium could not be set)
3. Epidemics/plague increased death rate, wiped out 2/3 European.
1757 death rate stabilized and petition to establish insurance company arouse but
not enough votes. First