Alyssa Lane
The history of insurance is a long and fascinating one, with the earliest forms of insurance emerging in the medieval period to protect against trade and business risks. Insurance has since evolved to cover a wide range of risks, including life insurance, which is the subject of this discussion. The question arises: which came first, life insurance, the airplane, or the parachute? To answer this, we must delve into the history of each invention and the context in which they emerged.
| Characteristics | Values |
|---|---|
| First insurance company | Hamburg Fire Office, 1676 |
| First fire insurance company | Insurance Office for Houses, 1681 |
| First parachute jump from an airplane | Grant Morton, 1911 |
| First backpack-style parachute | Solomon Lee Van Meter, Jr., 1916 |
| First military parachute | Štefan Banič, 1914 |
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What You'll Learn
The history of life insurance
Life insurance has been around in some form for centuries, with the ancient Romans having burial club funds that are recognised as one of the earliest forms of life insurance. In the Roman Empire, the cost of a funeral could be high, with expenses including musicians, actors, singers, burial grounds, and casket costs.
The first written insurance policy was recorded in London, England, in the 1500s. A man named William Gybbon, a meat and fish preserver, purchased a life insurance policy, with his friend Richard Martin as the beneficiary. The earliest known life insurance policy was made in the Royal Exchange, London, on 18 June 1583, where Richard Martin insured William Gybbons, paying thirteen merchants 30 pounds for 400 if the insured died within a year.
In the 1600s, the Great Fire of London in 1666, which destroyed over 13,000 houses, led to the development of insurance "from a matter of convenience into one of urgency". In 1676, the Hamburg Fire Office became the first officially established fire insurance company in the world. The first company to offer life insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706. In the 1700s, life insurance also began in the US, with a group of Presbyterian officials in Pennsylvania creating a fund to protect ministers and their families. This was called the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers, later changed to the Presbyterian Ministers Fund for Life Insurance.
In the 1800s, life insurance companies expanded across the US, with successful companies in New York, Maryland, and Massachusetts. In the 1830s, it is estimated that American life insurance companies wrote policies totalling around $600,000. The concept and acceptance of insurance expanded with the New Deal's 1935 Social Security Act, which aimed to achieve financial security for older workers. The market for insurance boomed after World War II, with large-scale programs promoting the idea that educational expenses and affordable housing mortgages were benefits of having served in the war.
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Parachute development and inventors
The history of parachutes dates back to medieval times, with the first successful test of a parachute recorded in 1617 in Venice by the Dalmatian inventor Faust Vrančić (or Veranzio). Vrančić based his design on a drawing by Leonardo da Vinci, which featured a pyramid-shaped parachute. However, it is unlikely that da Vinci ever tested his design. Vrančić's parachute, which he named Homo Volans (Flying Man), was a rigid-framed device that he used to jump from the Venice tower.
In the 1800s, parachute design focused on making the device more compact. Frenchman Jean-Pierre Blanchard, a balloon flight pioneer, is thought to be the first person to use a parachute for an emergency. In 1785, he dropped a dog in a basket attached to a parachute from a balloon, and in 1793, he claimed to have escaped from a ruptured hot air balloon using a parachute, although there were no witnesses. Blanchard also developed the first foldable parachute made from silk.
In 1890, Paul Letteman and Kathchen (or Katchen) Paulus invented the method of folding or packing the parachute into a knapsack, and Kathchen Paulus also invented the intentional breakaway, where a small parachute opens first and pulls open the main parachute. The first parachute jump from an airplane was made in 1911 by Grant Morton, and the first freefall jump from an airplane was made by Georgia "Tiny" Broadwick in 1914.
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Skydiving and life insurance
Skydiving is a popular hobby enjoyed by people of all ages. However, it is considered a high-risk activity due to the potential for serious injury or death, especially in the case of an uncontrolled dive or parachute malfunction. This perception as a risky sport can make finding affordable life insurance more challenging for skydivers.
Life insurance companies determine the level of risk associated with an individual when calculating their premiums. The higher the risk of the policy paying out, the higher the premium tends to be. While some insurers may not consider skydiving an extreme sport or factor it into their risk assessment, others will. In some cases, insurers may require skydivers to pay higher monthly premiums or even exclude skydiving from their coverage.
It is important for skydivers to be transparent about their hobby when applying for life insurance. Failing to disclose this information could result in a claim being denied in the event of an accident. While listing skydiving as a hobby may lead to higher rates or even denial of coverage, being untruthful about it would be considered insurance fraud and could result in legal consequences.
To find the best rates, skydivers should work with expert agents who have experience and knowledge in this area. These agents can save time and money by identifying the carriers that offer the most suitable policies for individuals with special risk life insurance needs. Term life insurance may be a good option for skydivers who only need coverage for a specific period, such as to cover financial liabilities like tuition or a mortgage. It is also important for skydivers to familiarize themselves with any restrictions on life insurance policies, especially regarding high-risk activities, to ensure that their policy remains useful.
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Airplane invention and early use
The history of aviation dates back several hundred years BC, with kite flying in China considered the earliest example of man-made flight. However, the invention of the airplane as we know it today is a more recent development.
In the late 18th century, the Montgolfier brothers invented the hot-air balloon, soon followed by the hydrogen balloon with the discovery of hydrogen gas. This period also saw the development of modern aerodynamics by physicists studying fluid dynamics and Newton's laws of motion, most notably Sir George Cayley. Balloons began to be used for military purposes, with France establishing balloon companies during the French Revolution.
In the 19th century, several pioneers experimented with gliders, including the Andalusian poet Abbas ibn Firnas, the English monk Eilmer of Malmesbury, Percy Pilcher in Britain, and Samuel Franklin Cody and Captain Génie Saconney, who flew manned kites. In 1896, Octave Chanute and his team flew several glider designs, ultimately settling on a biplane design.
The Wright brothers, Orville and Wilbur, are widely credited with inventing and flying the first airplane in 1903, recognised as "the first sustained and controlled heavier-than-air powered flight". They had previously conducted extensive glider tests from 1900, developing their skills as pilots. Their first practical flying machine was demonstrated in 1905, and they are also credited with developing the lift and drag equations, which were essential for understanding whether an engine could produce enough thrust to overcome drag. The Wright brothers' work with bicycles influenced their belief that unstable vehicles like flying machines could be controlled and balanced with practice.
There are, however, competing claims to the Wright brothers' status as inventors of the airplane. Some argue that the techniques used by the Wright brothers, such as a launch rail, skids instead of wheels, and a headwind at takeoff, disqualify them as the first to achieve successful airplane flights. These supporters credit post-1903 pioneers like Traian Vuia and Alberto Santos-Dumont, with Santos-Dumont making the first unassisted flight in 1906, certified by the FAI and recognised by the Aéro-Club de France.
Early airplane engines had little power, so lightness was crucial. Wings were often too lightweight to have enough strength, requiring external bracing struts and wires until increased engine power in the 1920s and 1930s allowed for the development of stronger, unbraced cantilever wings. The structural parts of early airplanes were typically made of wood with fabric wing surfaces, transitioning to all-metal aircraft by the end of WWII.
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The evolution of insurance
Insurance is a method of transferring risk that has been used since the earliest historical societies. The concept of insurance, which involves spreading risk among many people, is as old as human existence. The earliest forms of insurance were practised by merchants in Babylon around 4000–3000 BCE. These so-called bottomry contracts stipulated that loans taken out for shipments did not need to be repaid if the shipment was lost at sea.
The first American insurance company was established in 1752, and the first life insurance company in the American colonies was set up in 1759. However, it took over a century for insurance to become established in America, with the industry only reaching maturity in the 1750s. The first fire insurance company in the world was founded in 1676 in Hamburg, Germany. The Great Fire of London in 1666 also played a significant role in the development of insurance, as it highlighted the need for insurance as a means of protecting against financial loss.
The history of insurance is closely tied to the development of trade and commerce. Marine insurance, for example, facilitated international trade by providing protection against the risks of loss, damage, or theft. Similarly, the evolution of aviation and parachuting led to the creation of life insurance and the expansion of the insurance industry. For instance, the first person to be saved by an Irvin parachute, a type of parachute designed to be manually opened in mid-air, was William O'Connor in 1920. This event helped establish Irvin's company as a dominant force in the parachute industry, providing parachutes for both military and civilian use.
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Frequently asked questions
Life insurance. The Presbyterian Ministers’ Fund, established in 1759, was the first life insurance entity in the United States. The first viable parachute, on the other hand, was developed in the early 20th century.
The parachute. The idea of the parachute dates back to Leonardo da Vinci, and by the early 1900s, basic parachutes were already being used to perform jumps from hot-air balloons. The first parachute jump from an airplane took place in 1911.
Yes, but it depends on the insurance carrier. Many standard life insurance policies exclude high-risk activities like skydiving and won't cover deaths related to extreme sports. However, some insurance companies specialize in covering high-risk activities, and some travel insurance policies may also be suitable for recreational skydivers.
