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The birthplace of insurance is deemed to be Old China. Around 4500 years B.C. the merchants would ship the cargo and very often the voyage would be of no success. This induced the merchants to gather into temporary guilds, the members whereof would reimburse the damages in the event of shipwreck. Joint risk, collective indemnification, and mutual assistance – these were the main ideas of the merchant guild that served as the genesis of insurance history.