Did You Know? Fascinating Facts About Insurance

March 12, 2025by SHMA
  • The First Insurance Policy Dates Back to Ancient Babylon

Insurance has existed since 1750 BCE when merchants in Babylon paid lenders an additional sum to guarantee they wouldn’t have to repay their loans if their shipments were lost or stolen.

  • Lloyd’s of London Began in a Coffee Shop

What is now one of the largest insurance markets in the world started in the 17th century as a gathering place for ship owners, merchants, and underwriters in a London coffee shop.

  • The Titanic Was Insured for $5 Million

When the Titanic sank in 1912, the ship was insured for $5 million—a significant amount at the time—and the claim was paid in full within 30 days.

  • The World’s Most Expensive Insurance Policy

Silicon Valley tech entrepreneur David Geffen holds one of the largest life insurance policies ever, reportedly worth $100 million.

  • Hollywood Stars Insure Body Parts

Celebrities often insure their most valuable assets. For example, Jennifer Lopez insured her famous curves for $27 million, and soccer star Cristiano Ronaldo insured his legs for $144 million.

  • You Can Insure Almost Anything

From alien abduction insurance to coverage for a celebrity’s smile, the insurance industry has seen some bizarre policies. In 2000, a coffee taster insured his tongue for $14 million.

  • The Largest Insurance Claim Ever Paid

The 9/11 terrorist attacks resulted in the largest insurance claim in history, amounting to over $40 billion in payouts.

  • Why “Act of God” Is a Policy Term

The phrase “Act of God” is used in insurance policies to describe natural disasters such as floods and earthquakes that are beyond human control.

  • Insurance Influences Everyday Phrases

Terms like “hedging your bets” and “underwriting” have origins in insurance practices dating back centuries.

  • Pet Insurance Has Ancient Roots

Pet insurance was first introduced in Sweden in 1924. Today, millions of pet owners worldwide insure their furry friends against accidents and illnesses.