The Great Fire of London in 1666 prompted the creation of the first fire insurance companies, which later evolved into broader property insurance. Home insurance became more widespread in the 19th century, particularly in the United States and Europe, as urbanization and industrialization increased.

The Hartford Fire Insurance Company began offering policies in the U.S. in 1852. Post-World War II suburbanization (1950s–1960s) saw a significant increase in home and vehicle ownership, driving the widespread adoption of home and auto insurance.

The availability of affordable insurance has shaped capital allocation decisions and enabled complacency about property ownership and risk exposure.

A world where insurance is prohibitively expensive and hard to obtain is a new paradigm that should increasingly change how we allocate resources and value assets.

As Californians lose their homes and their livelihoods, finances will become a crucial issue for many people needing to rebuild and carry on. Bloomberg Business reporter Leslie Kaufman says this is an “existential test” for the state’s insurance system. She tells Hari Sreenivasan what it might mean for Americans as we face a future of increasingly extreme weather events. Here is a direct video link.