Have you ever wondered about the history of insurance in Australia? It's rumoured Australian cricket player Merv Hughes insured his moustache for $370,000, and that’s just one example of the Australian insurance industry’s colourful history.

History of Insurance in Australia

The 1830s

In about 1830, British insurance companies began setting up shop in Sydney and Hobart. The new British settlers traditionally had a community “pot of money”.

Residents received this money in cases of emergencies. This community savings account helped pay for funerals and other disasters.

The oldest surviving insurance policy certificate, issued to George Walter Cartwright, dates from 1833. He was the first trained lawyer to arrive in Australia. He soon formed a first legal partnership in 1823.

These community savings evolved over time. Organised domestic mutual insurers assumed the role of managing this money. In 1838, Derwent and Tamar formed the first insurance company originating in Australia.

They called it Derwent and Tamar Fire Assurance Policy Register. These archives have handwritten entries documenting the first fire covered by the company.

The 1840s

By 1849, these "gate-keepers" established the Australian Mutual Provident society. Derwent and Tamar remained prominent in the industry. By 1850 they had become the Derwent and Tamar Fire, Life and Marine Assurance Company.

They developed the Derwent and Tamar Fire Mark. Attaching their copper sheeting “trademark” to your property indicated you had their protection.

In the event of a fire, Derwent and Tamar’s private firefighters responded. This led to the formation of the Hobart Fire Brigade in 1883.

The 1850s to 1860s

With the discovery of gold in New South Wales and Victoria in the late 1850s, the economy shifted. The need for insurers was now a valued commodity. Communities grew and industries boomed.

This made insurance company investments more attractive. By 1861, there were 26 fire and marine insurance companies. This number increased to 48 in 1870.

Throughout recorded history, Australia has experienced many devastating floods. In June 1852, The Murrumbidgee River destroyed the 250-person town of Gundagai.

Only three houses remained standing. This flood killed 89 people. The town later rebuilt on the slopes of Mount Parnassus. The city remains in this location today.

The 1870s to 1880s: The Ned Kelly Story

Ned Kelly, an Australian bushranger, terrorised Australian citizens in the late 1870s. He's also known for wearing a suit of bulletproof armour during the final fatal police shootout.

His gang went on a killing spree between 1878 and 1880. Kelly blamed the government for their poverty and their actions.

In 1880 the Ned Kelly gang had their final shootout with the police at the Glenrowan Inn. Kelly was the only survivor. He was then tried, convicted, and hanged for his crimes. Ned Kelly’s last words were, “Such is life.”

During this last siege, a fire destroyed the Glenrowan Inn. The Colonial Mutual Fire Insurance Co Limited recorded this first fire claim ever filed and paid £100.

The 1900s

In the 1900s, the first state insurance offices opened. They offered workers’ compensation insurance for the first time, which has become a defining feature of Australian insurance.

These companies later became diversified due to economic pressure. They began offering motor vehicle and other types of insurance to remain viable.

The RACV Pool was created in 1934. This combined the Automobile Association and the AA of Victoria Pty Ltd and Club Motor Insurance Agency. Later on, this association led to the development of AAMI Insurance.

These state offices held 42% of the Australian insurance market by 1988. Then, the market structure shifted away from state-run companies to private corporations.

The History of TPAs

TPAs work with insurers, government, businesses, and self-insured corporations to decrease claims cost. It also provides improved outcomes for all parties.

In 1997, Gallagher Bassett was the first company to pilot the TPA model in Australia. This model works on streamlining the claims management process. Analysing the claims data helped identify risks and resolve problems faster.

How does this benefit the involved parties?
• Shorter time for claims processing
• Decreased cost
• Direct access to claims administrator specialists
• Increased claims outcomes oversight
• Facilitates customer satisfaction and loyalty
• Ensures a positive brand reputation

Gallagher Bassett focuses on claims management. They ensure that customers have claims specialists available to meet their needs. Their unique processes and state-of-the-art technology deliver exceptional outcomes.

Just for Fun

Now that you’ve got a handle on the history of the insurance industry, here are a few fun facts. You can get a policy to cover you if you make a hole-in-one and must buy drinks and food for the other players.

If you’re concerned about alien abduction, you can buy insurance for about $A150 for $A1.5 million in coverage. It’s rumoured that Lloyd’s of London sold policies to protect against vampire and werewolf attacks.

Would Your Company Benefits from TPA services?

Insurance is a part of everyone’s lives. Today's policies culminate from events found in the history of insurance.

Gallagher Bassett is the largest Australian multi-disciplinary Third-Party Claim’s Administrator. We tailor our services to meet your unique needs. We’ve worked with many self-insured worker’s compensation programs through the years.

Partnering with Gallagher Bassett will decrease risks, improve your work outcomes, and control costs. We will also decrease your self-insurance administration burden. Contact us today to learn more about our services.