The document discusses the history and role of insurance. It outlines how insurance began as early as 1750 BC in ancient civilizations, then evolved in Greece, Rome and later in London in the 17th century. It provides context on insurance development in Sri Lanka from the 19th century under British rule to modern times. Key events included nationalization in 1961, deregulation in the 1980s, and privatization in the 2000s. Today, insurance plays an important social and economic role by pooling and transferring risks, providing monetary compensation for losses, and restoring policyholders' previous financial positions.

1. Presented By : N . PRASHA

2.  What is insurance?
 Why we need insurance?
 Evolution of insurance in World context.
 Evolution insurance in Sri Lankan context.
 Current role of insurance.

3. Insurance is a form of contract between two parties
whereby one party (insurer) agrees to compensate
the other party (insured) against a loss (may occur
or may not occur) over a payment of consideration
(premium) .

4.  Insurance provide security.
 Insurance reduces risk or loss.
 Insurance provide peace of mind.
 Life insurance encourage savings.
 Insurance accelerate the economic growth of the country.

6.  In 1750 BC the first form of insurance recorded by Babylonians &
Chinese Traders . The First document of insurance is Code of
Hammurabi .
 Around 600 BC Greek &Phoenicians used insurance for their seaborne
commerce & at similar time Romans formed the first type of life &
health insurance .
 In 14th century the first documented insurance policy came in Genoa.
 The first insurance company was formed in 1688 in London named
Lloyd’s London
 Insurance developed rapidly with the growth of British commerce in the
17th & 18th century.

7.  1666 Great Fire of London. Shortly thereafter, Nicholas Barbon opens
the first fire insurance office in England. It eventually becomes The
Phoenix Assurance Company. Over the next two decades, more fire
insurance companies start up.
 1574 Queen Elizabeth I grants to Richard Candler the right to establish
an insurance office in the Royal Exchange Building for the preparation
and registration of policies.
 1601 Britain’s Parliament enacts the Assurances Act of 1601 creating
an assurance commission for resolving policy disputes.

9.  Pre – 1961
 Insurance business in Sri Lanka commenced with the advent of the coffee &
tea industry during the period of British rule.
 A number of representative offices of foreign insurance companies were in
operations.
 In the early part of 20th century , life insurance companies too were
established.(e.g. New India assurance, Sun life Insurance, Royal assurance
Ltd,Pearl assurance etc.)
 In 1961
 The Industry was nationalized. The government took over the operations of the
then- existed companies Ceylon Insurance company Ltd was setup as the only
supplier of insurance.

10.  In 1986
 Setting-up of National Insurance Corporation creating a government controlled
oligopoly.
 In 1987
 Insurance sector was opened for the private sector.
 In 2001-2003
 Privatization of National Insurance Corporation (2000/2002) & Insurance
Corporation in Sri Lanka.

11. Today many insurance companies are in insurance industry (e.g.World-
Allianz,AXA,China life insurance, Srilanka-AIA,Amana Takaful,etc.) . & they
provide various insurances. And also today insurance plays a significant role in term
of human life, properties & business scenario. This role can be summarized as
follows.
 Pooling the anticipate losses.
 Transferring risk to insures.
 Providing monitory benefits if the risk occur.
 Immediate recovery from losses.
 Insured is restored to his or her previous financial position before to the occur of
the loss.