If we look at the history of insurance, we will find it processing along since the emergence of human society. In olden days, people used to help their

neighbors if some mishap had taken place with them; this is a form of insurance as well. This type of insurance is still continued where modern money economy with contemporary financial tools is not common, which includes countries in the area of the former Soviet Union.In 3rd and 2nd millennia BC, Chinese and Babylonian traders used to carry out insurance in modern way with the initial methods of transferring or distributing risk. Chinese merchants used to redistribute the goods across many vessels to minimize the loss because of any single vessel overturn. The Babylonians established a system that if a merchant received a loan to finance his shipment, he would pay the lender an extra amount of money to assure the shipment.The first people who insured, by making it official, were the Achaemenian monarchs. They registered the insurance process by officially putting it in course of governmental notary offices. This insurance custom took place every year in the beginning of the Iranian New Year. The leaders of different ethnic groups and others presented gifts to monarchs. The issue was recorded in a special office, when a present was valued more than 10,000 Derrik (Achaemenian gold coin). It became quite beneficial for the people who presented these sorts of gifts. The intention of registering was that if an individual who presented the gift was in a problem, the monarch and the court would assist him/her. This is considered insurance in today’s world.The Greeks and Romans put the health and life insurance forward in 600 AD, by organizing associations named “benevolent societies”, which helped the families and paid funeral costs of members upon death.In the end of seventeenth century, marine insurance gained a lot attention in London. Mr. Edward Lloyd introduced a venture for cargo insurance and ships. Now, Lloyd’s is considered one of the leading companies offering marine and other types of insurance.In 1732, the first insurance company was opened in United States in Charles Town, South Caroline, for fire insurance.