Medieval and Renaissance Europe (12th – 16th Centuries)

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Marine Insurance: As trade grew during the Medieval period, especially around the Mediterranean, merchants and shipowners began to develop more structured systems of risk-sharing. One of the first examples of modern insurance came with marine insurance, which was used to protect merchant ships and cargo from loss due to piracy, shipwrecks, or storms.
The Lombard Banking System: By the 13th century, the Lombard merchants in Italy had set up a system to insure cargo. If a cargo was lost at sea, the value of the goods would be compensated. This was an early form of “bottomry” in marine insurance.
Guilds and Mutual Aid Societies: In medieval Europe, guilds (associations of workers or merchants) played an important role in risk management. Members of a guild would pool their resources to support one another in times of need—whether for healthcare, burial costs, or protection against business losses.

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