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Show First Fire Insurance Company in U. S. Was Founded 151 Years Ago Early American colonists insured against fire and other risks in London. Lon-don. The first share capital fire insurance in-surance company was established in 1794, 151 years ago. The new republic re-public was only five years old when two new companies owned by shareholders share-holders received charters from their home state of Pennsylvania to write fire insurance. Those companies com-panies are still in business, and 24 other American insurance companies, com-panies, active today, have been writing property insurance more than 100 years. Some states encouraged the development de-velopment of fire insurance within their own borders. In the early 1800s, Pennsylvania and New York had laws excluding foreign companies, com-panies, and Pennsylvania in 1829 forbade for-bade writing of insurance there by companies organized outside the state. Stock companies were attempting at-tempting to start agency systems outside their home states, but this move made no great headway until 30 years later. In the 1850s, both the agency system and regulation of companies by state insurance departments de-partments began to develop rapidly. Huge Loss Spurs Growth. 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, con-flagration, amounting to $75,000, twice the amount of premiums collected col-lected 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 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 busi-ness in the 19th century parallels roughly the expansion of the United States. By the middle of the century, cen-tury, in 1854, 65 fire insurance companies com-panies were reporting to the authorities authori-ties in the state of New York. The annual volume of fire premiums received re-ceived by these companies that is, premiums received in all states in which the companies 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 re-ceived by companies reporting to the Insurance department of New York, the annual volume doubled in every successive decade or less until un-til around 1920. Total premiums received re-ceived in 1920 were 759.5 million dollars. They eased off more than 100 million dollars the following couple of years and then rose irregularly ir-regularly to a peak of 793 million dollars in 1929. In the decade of the 1930s they tended to follow the economic trend downward. There was an upturn in 1934, then a level period lasting four years. In 1939 the upward trend was resumed. |
