From Wonders and Marvels: Risk Insurance in the Eighteenth Century.
Travelers to distant lands have always known that risk is an inevitable part of the adventure. And from ancient times they invented ways to mitigate that risk. Medieval English guilds established funds to provide for their members in the event of accident when they were abroad. Fifteenth-century pilgrims would ensure themselves against captivity. For a certain payment, the insurer would agree to ransom the traveler should he be captured by pirates or Arabs.
As travel expanded, individual traveler’s insurance took on the form of a bet on their own survival – a broker would take a specific amount and agree to pay it back with substantial interest if the traveler returned. The risks of travel were so high that it was usually assumed impossible to purchase insurance that would pay out to someone else if the traveler did not come home. [continue]