What is considered the oldest form of insurance?

The oldest form of insurance is ocean marine insurance. This type of insurance dates back to ancient times, with early records indicating its existence among traders in city-states like Babylon and later in ancient Rome. Ocean marine insurance was developed primarily to protect merchants and ship owners against the risks of loss or damage to ships, cargo, and freight as they traversed the seas. The value derived from this type of insurance is rooted in the significant financial investments made in maritime trade, where loss due to shipwrecks, piracy, or cargo damage could be devastating to the involved parties.

Marine insurance's historical context highlights the importance of safeguarding trade routes and the economic stability they provided, establishing its fundamental role in the development of insurance as a whole. This makes ocean marine insurance a pivotal starting point in the evolution of risk management practices. In contrast, other types of insurance, like health or property insurance, developed much later as societies and economies progressed, thus reinforcing the distinction of ocean marine insurance as the earliest form.