INSURANCE MANAGEMENT - This is where the development of Indonesian insurance began with the Nederlandsche Indiesverzekering Foundation at lijfrente Maatschappij (NILMIJ) in Betavia on December 31, 1859.
Some experts believe that The essence of property insurance lay several thousand years ago in the Euphrates Valley in Babylon .
By that time the Babylonian trade had grown so rapidly. Merchants sent their merchants to the Babylonian area to sell their goods.
Over time, sales will go abroad to grow it is quite time consuming. These vendors operate on a percentage of their shopping trip profits. They are believed to be transporting belongings of their employers.
Of course, these employers needed collateral to convince them that it mattered. The seller came back with a profit and didn't run. So the sellers provide their own property as guarantee they are not betraying their employer.
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But not all the areas they pass through are sometimes peaceful areas The employer's goods and money were confiscated during the trip so that the sellers returned empty handed and their fortunes were made the employer revokes the guarantee. This sacrifice is clearly unfair and causing vendor protests until changes are made to the agreement Agreement.
With this new system, employers and vendors share profits equally obtained from shopping. But in case of theft or robbery then it's not the seller's fault, the seller's property will not be confiscated Employer. Thus, part of the business is transferred or transferred from supplier to supplier his employer. The transfer or sharing of risk, which is one of its characteristics this is the essence of property insurance.
We find this concept in Greece. If Greek money loans provide loans to ship owners to finance the voyage. So the ship serves as collateral or pledge. However, this loan will be canceled if the ship can't go back home. In principle, the charterer insures the ship for the loan amount due to the high business risk. Then evaluate Interest rates on loans are higher than usual. The difference between the levels is the borrower pays at this normal rate of interest, now called the premium coverage
An example of dealing with the problem of risk in ancient times Chinese merchants shipped large quantities of goods by boat by the river, because this way is best suited for large ones size Some rivers are very dangerous to cross, not uncommon for boats and the load is lost. Therefore, the owner of the goods bears all the burden own loss Finally came the idea of spreading the risk by shipping Not only in one boat, but divided into several boats.
So if something like a ship sinks, there won't be any damage only one person, but together. Even modern insurance apply the principle of equal risk sharing The pioneers of modern life and health insurance can also be found in Greece and Rome In ancient Greece there were religious groups that carried out their activities Collects funds from its members to cover funeral expenses.
Activity This can be the start of funeral insurance. When Rome replaced Greece as the leader of the ancient world. somebody Rome uses the same system for life insurance. But with With the development of the Roman system, the focus of activities was no longer on religious elements. But open to the public. On the one hand, growing wider coverage for certain groups such as the military.
In practice, insurance does not cover the risk of damage Life, property and benefits, but provides a form of risk management Loss of income, assets, interests or risk of financial insecurity through premature death, disability, serious illness, accidents, disasters Natural, disasters that can prevent a person or object/tool from reaching it and can be classified as a form of temporary savings medium/long term such as child care, health care, funding Old age due to retirement, etc.
In addition, insurance can be used as a planner personal, family or business finance. The above insurance activities are carried out by insurance companies which is defined as a financial intermediary that provides services financial risks associated with death, illness, Damage or loss of property and other protection against loss. Insurance companies can be divided into several categories depending on the type of risk closed, namely:
- Life and health insurance companies
- Real estate and debt companies