From small beginnings grow multi-billion pound financial industries

Have you ever wondered what led to the birth of the modern insurance industry? No, me neither.

But it turns out that the Great Fire of London was the catalyst for what is today a multi-billion pound industry encompassing everything from contents, cars and caravans to pets, festivals and holidays. I admit to finding that interesting.

This year marks the 350^th commemoration of the Great Fire of London, an event which started in a bakery on Pudding Lane and went on to devastate more than 13,500 homes and 87 churches, including St Paul’s. Estimated rebuilding costs were £10 million in the 17^th century. The Association of British Insurers (ABI) calculates that repairing the damage caused by a blaze of that size in 2016 would cost insurers at least £37 billion – the equivalent of building four Olympic Parks – although the actual figure could be much higher due to business interruption. According to Ecclesiastical Insurance, rebuilding St Paul’s cost £700,000 at the time, but this would top £600 million today.