Insurance was around in about 2 or 3 B.C. The earliest example of insurance is the exchanging between merchants, traders, and transporters. Agreements were made where they would guarantee the safety of cargo or goods. If the items were damaged or lost, the person sending or the person receiving or sometimes both would pay for the lost or damaged goods. Later, when civilization progressed, they hired guards for the items another way to ensure safety of cargo and goods.
Then in 1666 in London, the first actual insurance business was started. This insurance business was created because of the affects of the Great London Fire. The insurance business wanted a way to help people with their losses and sought to start a way to prevent financial loss and downturn.