The History of Online Insurance in Canada

Wednesday, October 31, 2012

Insurance is quite a fascinating topic. Aside from the fact that it is immensely diverse, it also has a profound history that backs it.  Insurance dates back to the year 1063. This was a time when merchants in England and Italy were regularly financing ship voyages. They knew what dangers their ships could face due to navigational errors, pirate attacks, and bad weather conditions. This led to the creation of a sea indemnity code named “Amalfi Sea Code”.

Under this code, merchants who lost their ships could have their money reimbursed from the pool of member merchants. All members were required to make regular contributions, which could then be used to compensate for the property loss of any fellow member. From then on, more forms of indemnity were also created.

Though the roots of traditional insurance are buried deep within the past, online insurance is relatively recent. Like most online businesses today, online insurance also came into existence when the “internet” came into existence. The official launch of the internet took place in 1989 and World Wide Web (www) was introduced in 1990

Once the internet was fully initiated, it was just a matter of barely 5 to 10 years when businesses started going online too. And like all those businesses, insurance also spread its wings to the online global market. Initially spreading locally within countries, it soon went transatlantic and worldwide. It is quite difficult to say in which years insurance was fully introduced in particular countries. Likewise, it is equally difficult to say precisely when it was introduced in Canada.

Canadian online insurance was and has always been aimed at offering people a better way of life. It has also made it easier for people to shop for indemnity. Before the introduction of online insurance, Canadians only knew one way of shopping for insurance – and that is by leafing through insurance company directories, phone books, and calling insurance agencies and brokers.

Online insurance in Canada has now made it possible for people to shop for insurance from the comfort of their homes. All people now need is an internet connection and some browsing skill to find insurance plans online. Searching and purchasing online insurance policies is quite similar to the conventional method of shopping for insurance. The only difference is that the entire process is handled on the internet. By simply acquiring online quotes, people can actually compare and find the best priced insurance coverage plans.

The application process simply requires applicants to fill and submit online application forms to insurance companies. They will also be required to submit relevant documents and credentials, which will be analyzed by the companies. The analysis process involves thorough investigations, which are carried out by insurance agents. Once applicants qualify, they are granted indemnity according to the coverage options they opt for.

Before insurance went online globally, people had no choice but to go through the time consuming and bothersome process of manual applications. This often discouraged people from opting for insurance altogether. Thankfully enough, things are now a lot simpler ever since the advent of Online Insurance.