Shop assistant: Mr Xu, have you ever heard of the saying "Don't put your eggs in one basket"?
Mr. Xu: I have heard of it. Refers to the dispersion of capital risk in the process of financial management. Right?
Shop assistant: Yes. Anyone who buys eggs in this way always buys a catty of eggs, carries a lot of baskets, and puts one egg in one basket. This is called risk diversification. What will others think?
Mr. Xu: Sick. How much are eggs worth?
Shop assistant: That's right. Only what is valuable will pay attention to its risks. You just asked me what insurance is. When it comes to insurance, you have to start by diversifying risks. Tell a story, a long time ago, one day a man was walking by Dachuan, and he saw ten ships loading. Everyone loaded their own goods onto their own ships. Every ship has returned with a full load and is about to set sail. Suddenly, the wind blew and waves set off on the river. Some people worry about the danger of sailing and propose to leave one day later, but most people are afraid of delaying the voyage and affecting business. While the two sides were hesitating, the wise man walking came up to him and had an idea. He suggested sailing at once, but he asked everyone to divide their goods into ten parts, load them on ten ships respectively, and then set off. A few days later, nine boats came back, one boat was overturned by the wind and waves, and everyone lost only one tenth of the goods. Everyone thinks that the wise man's method is brilliant. Later, the wise man seized this business opportunity and started a business. Every ship that set sail from this dock paid him a certain fee, and he promised to compensate for the losses caused by the accident during the voyage. This is the early embryonic form of insurance. This story happened in Italy in the14th century. 1347+0654381The Ship Transportation Insurance Contract signed by the merchants in Genoa, Italy on October 23rd is the oldest insurance policy discovered so far.
Mr. Xu: Very interesting.
Salesman: Actually, in our idioms in China, such as "prepare for danger in times of peace", "prepare for a rainy day" and "prepare for a rainy day" all reflect the ancient simple insurance thought. During the Spring and Autumn Period, Confucius' thought of "farming three things and one thing" was quite representative. According to Confucius, if one-third of the harvest can be stored every year for three consecutive years, it will be enough 1 year, that is, "one profit". This is actually a kind of insurance. Another example: warm clothes, rain-proof umbrellas, spare tires for cars, fire extinguishers in corridors, and locks on your door, all of which are related to insurance.
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