| Show First Fire Insurance Company in United States Founded Years Ago Early American colonists insured against fire and other risks in Lon Lon- don The first share capital fire insurance insurance in in- company was established in 1794 years ago The new republic republic republic re re- re- re public was only five years old when two new companies owned by shareholders shareholders shareholders share share- holders received charters from their home state of Pennsylvania to I I write fire insurance Those companies companies companies com com- I are still in business and 24 other American insurance companies companies companies com com- active today have been writing property insurance more than years Some states encouraged the development development development de de- de- de of fire insurance within their own borders In the early Pennsylvania and New York had laws excluding foreign companies companies companies com com- and Pennsylvania in 1829 forbade forbade forbade for for- bade writing of insurance there by I companies organized outside the state Stock companies were attempting attempting attempting at at- tempting to start agency systems outside their home states but this move made no great headway until 30 years later In the both the agency system and regulation of companies by state insurance departments departments departments de de- de- de began to develop rapidly Huge Loss Spurs Growth I The trend toward this growth was stimulated by a disastrous fire in New York in 1835 which necessitated the payment of large losses and ruined some New York companies One Connecticut company which is still in existence had total losses after settling claims in this conflagration conflagration con con- amounting to twice the amount of premiums collected collected collected col col- col- col in 1835 from all states in which this company did business The catastrophe of 1835 provided a tragic but persuasive reminder of the shortsightedness of restrictive legislation and it caused the states to welcome sound fire insurance companies from other states and from abroad whose risks were spread over large areas This fire also demonstrated the wisdom of geographic dispersal of liability for losses and directed attention to the necessity of maintaining company reserves large enough to meet normal normal normal nor nor- mal anticipated losses as well as the importance of being prepared for possible catastrophic losses Doubles Every Decade The growth of fire insurance business business business busi busi- ness in the century parallels roughly the expansion of the United States By the middle of the century century century cen cen- tury in 1854 65 fire insurance companies companies companies com com- were reporting to the authorities authorities authorities ties in the state of New York The annual volume of fire premiums received received received re re- re- re by these companies that companies that is premiums received in all states in which the companies operated operated- more clearly illustrates the growth of fire insurance business in the United States than any other data Starting with 1859 when premiums of some 15 million dollars were received received received re re- re- re by companies reporting to the Insurance department of New NewYork NewYork NewYork York the annual volume doubled in every successive decade or less until until until un un- un- un til around 1920 Total premiums re received received received re- re in 1920 were million dollars They eased off more than million dollars the following couple couple couple cou cou- of years and then rose irregularly irregularly irregularly to a peak of million dollars dollars dollars dol dol- lars in 1929 In the decade of the they tended to follow the economic trend downward There was an upturn in 1934 then a level period lasting four tour years In 1939 the upward trend was resumed |
