Rome wasn’t built in a day. The city needed its insurance industry to develop first.
Maritime insurance is the oldest form of insurance by centuries. But it looked very different when it was sought by sailors crossing the seas that Odysseus had found so perilous. It was much more speculative.
Instead of paying a fee to insure their cargo, merchants funded their voyages with loans that also served as insurance. The loans had very high interest rates, because under the terms of the loan, if the ship sank or the voyage did not succeed, the merchant did not have to repay the loan. This practice, which dates back to at least 1800 BCE and Ancient Babylon, is known as “bottomry”—a reference to the fact that lenders could claim the ship itself if they were not paid back on time.