Bermuda-based reinsurers are weighing restructuring options in response to US tax reform legislation that could be signed by President Donald Trump as early as this week and come into effect by the start of next year. However, judging from conversations with clients, he views a mass exodus of jobs from the island as unlikely. But perhaps the biggest direct impact for the island will come from the Base Erosion and Anti-Abuse Tax, known as Beat.
Early methods[ edit ] Merchants have sought methods to minimize risks since early times. Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.
The Babylonians developed a system which was recorded in the famous Code of Hammurabic. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen, or lost at sea.
Circa BC, the inhabitants of Rhodes created the ' general average '. This allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether due to storm or sinkage.
The first known insurance contract dates from Genoa inand in the next century maritime insurance developed widely and premiums were intuitively varied with risks. Insurance became far more sophisticated in Enlightenment era Europeand specialized varieties developed.
Lloyd's Coffee House was the first organized market for marine insurance. Property insurance as we know it today can be traced to the Great Fire of Londonwhich in devoured more than 13, houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren 's inclusion of a site for 'the Insurance Office' in his new plan for London in Initially, 5, homes were insured by his Insurance Office.
By the end of the seventeenth century, London's growing importance as a center for trade was increasing demand for marine insurance. In the late s, Edward Lloyd opened a coffee housewhich became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, and those willing to underwrite such ventures.
These informal beginnings led to the establishment of the insurance market Lloyd's of London and several related shipping and insurance businesses. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based.
By the late 19th century governments began to initiate national insurance programs against sickness and old age. Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the s. In the s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany's welfare state.
This gave the British working classes the first contributory system of insurance against illness and unemployment. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.
In order to be an insurable riskthe risk insured against must meet certain characteristics. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
Insurability Risk which can be insured by private companies typically shares seven common characteristics: Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses.Matt Lovein is a senior partner and founding member of Ironwood Insurance Services.
He has been instrumental in growing Ironwood from a start-up in to the leading independent commercial insurance brokerage firm in the southeast. Learn about working at Hall Underwriting and Consulting, LLC.
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Tim has a broad knowledge of the insurance model and has been successful in underwriting and building the Risk Management operations for Canal Insurance.
Professional He also had a lead role in the merger and acquisition of General Accident and Commercial Union which was a very successful transaction.
Performed underwriting for all life insurance applications for both term and permanent products. Provided professional insurance consulting to life insurance producers/agencies and vendors. Interpreted EKG results with unlimited face amount approval authority limits.