https://doi.org/10.36719/2706-6185/45/240-242
Shahin Rahimov
Baku Business University
Master student
https://orcid.org/0009-0009-7481-5927
shahinrah13@gmail.com
History and Economic Nature of Insurance
Abstract
The article provides an overview of the history and economic nature of insurance. It begins by tracing the origins of insurance back to ancient civilizations like Babylon and China, where early forms of risk management emerged among merchants. These practices evolved into more structured systems during medieval Europe, with guilds and mutual aid societies offering financial support against risks.
The economic nature of insurance is described as revolving around risk management and mitigation. Insurance companies assess various risks and offer policies to individuals and businesses, pooling premiums to create funds that can compensate policyholders for losses due to accidents, natural disasters, or health issues. This function not only protects individuals and businesses from financial hardship but also supports economic stability by enabling investment, innovation, and resilience in the face of uncertainties.
Overall, the article emphasizes how insurance has progressed from ancient risk-sharing practices to become a critical component of modern economies, facilitating economic activity and providing financial security on both individual and societal levels.
Keywords: insurance, history. economic nature, risk, economic stability