Origins of Maritime Insurance (1340s, Italy)

Timeline

1. 1341–1345Genoa · GenoaGenoese and Florentine merchants lent money secured on ships or cargo: if the voyage went safely, principal plus high interest was repaid; if shipwreck occurred, the debt was forgiven—effectively converting maritime risk into a priced premium, a typical form of early bottomry insurance.
2. 1343–1348Florence · FlorenceMerchants began drawing up maritime insurance contracts independent of lending relations, specifying voyage, perils, and indemnity conditions; meanwhile they retained the ancient general average custom, under which losses from property sacrificed to save the whole cargo in a common peril were shared proportionally by all parties.
3. 1346–1350Venice · VeniceThe Venice–Genoa wars and the 1348 plague disrupted shipping, closed ports, and caused crew shortages; merchants used insurance and reinsurance more frequently to hedge risk, prompting Mediterranean commercial cities to refine contract templates and arbitration mechanisms.