Osiguranje imovine

Property Insurance – From the First Policies to the Digital Era

In the world of insurance, property insurance is the foundation that ensures that individuals and companies are protected from a variety of risks that can cause damage to their physical assets. The evolution of property insurance, from its inception until today, is presented below.

Beginnings of property insurance

The Great Fire of London (1666): the devastating fire that struck London is often considered the catalyst for modern property insurance, as it resulted in a huge loss, highlighting the need for a system to cushion the financial impact of such disasters.

The first insurance funds: After the fire, Dr. Nicholas Barbon and associates began offering fire insurance, leading to the founding of the first insurance company, the Fire Office, in 1680.

Development of the insurance coverage concept

Standardisation: as the industry developed, the need for standardised policies arose. This has led to the creation of standardised contracts, which in detail define coverage, exclusions and terms.
Even though the first policies primarily focused on fire, as the recognized perils and possibilities expanded, the policies were broadened to cover more risks including wind, water damage, theft and more.

Growth and globalization of insurance

The 19th century: in the 1800s, many insurance companies throughout Europe and America were established. The spread of industrialisation required broader coverage, including business interruption insurance.
World wars, which followed in the next century, caused great losses, both in terms of lives and property. After the war periods, the purchase of insurance increased because risk awareness grew. Globalisation, with the accelerated flow of information, people and capital, has ensured that traditional and new concepts of property insurance find their place in new regional and global markets.

Modern property insurance

Digitalization: nowadays, like many other transactions, the insurance process – from buying a policy to collecting claims – can be done online, while insurance providers are transforming the landscape with innovative solutions.

Specialised products: The current market offers tailored products – from flood insurance in flood-prone regions to tenant insurance in urban areas.
Climate change and sustainability: considering growing concerns about global warming and natural disasters, insurance companies are paying more attention to sustainable housing and construction methods. Premiums and coverage now often depend on both the environmental impact and the resilience of the insured property to climate and natural risks.

Role of reinsurance

Reinsurance, or basically insurance for insurers, plays a key role in the industry. By spreading risk across multiple entities, reinsurance ensures that primary insurers can cover large-scale catastrophes without facing insolvency.

Challenges and development path of property insurance

Regulations: like any other industry, insurance faces regulatory challenges that vary by region. Changed risk landscape: the increased frequency of natural disasters and the unpredictability of global events require dynamic risk assessment models and investments in new prediction models. Therefore, it is clear that the future of property insurance largely relies on predictive modelling, data analysis and technologies that can help insurers better understand risks and adapt policies to specific needs.

From its origin, directly initiated by the consequences of a catastrophic fire in London in the 17th century, to its current digitised and globalised form, property insurance has constantly adapted to market changes. A glimpse into the future suggests that the industry’s continued evolution will undoubtedly be shaped by technological advances and the capacity to monitor and respond to the ever-changing global risk landscape.

In such an environment and circumstances, EuroSolutions has been finding the best insurance solutions for its clients’ property for 14 years, based on their needs and possibilities. We are here for you!