History of Insurance

Insurance community originated from Babylon 4000-3000 BC Hammurabi is known for its agreement. Then in 1668 AD at the Coffee House Lloyd's of London London stands as the forerunner of conventional insurance. Sources of insurance law is positive law, natural law and as examples of pre-existing culture.

Insurance brings economic as well as social mission with the premiums paid to insurance companies to guarantee the transfer of risk, namely the transfer (transfer) the risk of the insured to the insurer. Insurance as a risk transfer mechanism in which an individual or a business move some uncertainty in exchange for premium payments. The definition of risk here is uncertainty whether or not a disadvantage (the uncertainty of loss).

Insurance in Indonesia started in the Dutch colonial period, is associated with the success of the country's companies in the plantation sector and trade in Indonesia. To meet the security needs of business sustainability, of insurance is required. Development of insurance industry in Indonesia had a vacuum during the Japanese colonial period.
Security needs to filled by the Life Insurance

1) Personal Needs, including: the provision of the final costs of living such as costs associated with death, the cost of bill payments in the form of debt or loan must be repaid; family benefits; the cost of education; and pensions. In addition, life insurance policy that has cash value can be used as a savings and investment.

2) Business Needs, such as: insurance on key persons (insurance for key people within the company); on business owners insurance (insurance for business owners); employee benefits (employee benefits) for example, life insurance and health collection.