Mutual Insurance: Beware the Minefield

The pooling of risk is probably the simplest, most elegant methods of risk management, and was practiced as early as 800BC when Rhodian merchants would pay to insure their goods which are shipped together. This generated a pot of premium, which is in turn utilised to compensate the losses of those whose goods were lost at sea. What are known today as ‘benevolent-’ or ‘friendly societies’ were in existent in ancient Egypt, in which members pooled their funds to provide a form of life insurance for surviving dependents, as well as to pay for their own burials.

By | 2017-09-09T13:21:23+01:00 July 2nd, 2015|law news|0 Comments