Insurance
Insurance companies make their money by charging their customers more money in premiums than they pay in benefits for the claims made on the insurance policies. Insurance is like gambling in that the insurance carrier bets that amount of premiums collected will exceed the amount of payments made for claims.
Insurance History and Theory
Insurance began as a way for merchants to share the risk that their goods would be lost or stolen when traveling. When international commercial relations became central to the English economy, insurance became widespread in England. Fire insurance was developed and the first life insurance policies were taken out in the early 18th century. The first Life Insurance Policies were offered by the Amicable Society for a Perpetual Assurance Office, which was founded in London by William Talbot and Sir Thomas Allen. Edward Rowe Mores then established the Society for Equitable Assurances on Lives and Survivorship in 1762.