By Patrick J. Mahoney
During the 19th century, a number of insurance companies established their headquarters in the city of Hartford, earning it the nickname, the “Insurance Capital of the World.” As time went on, the presence of insurance giants became vital to the social, economic, and political fabric of the capital city. One of the most successful insurance companies to emerge during this period was Aetna. Over time, Aetna, whose headquarters still reside in Hartford, emerged as the nation’s largest health insurer. It remains one of the local area’s leading employers.
In the spring of 1819, a number of prominent Hartford businessmen and merchants at Morgan’s Exchange Coffee House became embroiled in a heated discussion regarding the efficiency and practicality of the state’s fire insurance industry. It was this exchange at the popular State Street social spot that sowed the seeds for what eventually became the Aetna Fire Insurance Company, and later, Aetna Inc.
After deeming Connecticut’s existing fire insurance companies insufficient to meet the demands of the commercial expansion in the state’s cities, 137 business and social leaders from the Hartford area, led by Thomas K. Brace, drew up a petition to establish a new insurance company. The petition outlined the fragility of the state’s existing insurance industry, noting, “It is presumed that each of the existing offices have undertaken risques to an amount greater than the capital of them all, and should a conflagration take place, in some of our towns, as disastrous as has been experienced in many places, it is greatly to be feared many of the sufferers would too late discover their insecurity.”
The first sign that the 1819 petition made an impact in the state legislature appeared in a May issue of the Hartford Courant, which noted that legislators formed a committee to consider the petition’s assertions. Its next public mention came in a Courant report, announcing the passing of a bill “to incorporate the Aetna Insurance Company” at the June 5 legislative session. It noted that founders chose the name “Aetna” in reference to the famous volcanic mountain on the east coast of Sicily, which “though surrounded by flame and smoke is itself never consumed.”
The Great New York City Fire of 1845
Almost immediately, the Aetna Fire Insurance Company challenged its competitors for supremacy in a competitive, yet unstable, market. On a hot summer morning in 1845, however, the fortunes of the young company took a drastic turn. An unidentified boat captain arrived in Hartford from New York City and entered the Aetna offices (then located on State Street) frantically announcing that New York City was completely engulfed in flames. Summing up a near apocalyptic scene to his listeners, he noted, “the whole lower part of the city was covered with thick clouds of smoke through which we could see angry tongues of flame, seemingly in a dozen places at a time. Never did I hear such a clanging of fire bells; we could see at various points crowds of people running frantically up the streets; the city was in a tumult; and we heard men on the docks calling out that New York was doomed this time!”
Aetna president Thomas K. Brace hastily made his way down to assess the damage and estimate losses. Upon returning to Hartford, he called a meeting of the company’s board of directors. After acknowledging that the company’s resources and capital were almost completely exhausted by customer losses from this catastrophic event, he quickly endorsed various notes and sent them to banks to be discounted. With this quick and decisive action, the company managed to pay all of its customers’ claims. Although the event nearly proved disastrous to Aetna’s financial future, the manner in which Aetna managed their claims solidified its reputation as a sound and reliable insurance company.
This reputation soon spread, not just through the northeast but throughout the entire nation—made physically evident by the many small tin Aetna signs placed on the front of public and private buildings across the country. The presence of these signs, in highly visible places, not only conveyed protection by the emerging Connecticut insurance power, but also reinforced and spread Aetna’s reputation for safety, reliability, and prompt payment.
Entering the Life Insurance Business
In May of 1820, nearly a year after the first calls for the formation of a new fire insurance company, Aetna’s board of directors again voted to send a petition to the state legislature— this time seeking a charter amendment to permit the writing of life insurance. The expansion was a bold move given the stance of many religious leaders that assigning monetary value to one’s life was an immoral practice. Once approved by the legislature, however, the board voted to set aside an additional $50,000 of stock for the life insurance venture.
As the company continued to expand (now in two directions), the unique business demands of fire underwriting and life insurance became increasingly clear. Thus, the board of directors petitioned the legislature again in 1853, this time seeking to amend the charter to separate the life insurance department from the parent company. The stockholders of the “Annuity Fund” now constituted a new corporation under the name “the Aetna Life Insurance Company,” with Eliphalet A. Bulkeley as its first President.
Thriving in the “Insurance Capital of the World”
As time progressed, Aetna continued to adjust its areas of focus to meet consumer concerns and demands. Such innovations included the introduction of an accident and liability department to appeal to the increased focus upon labor rights and unions in the early 20th century, and the creation of an automobile insurance company in 1913 to meet societal concern in an age of increasing mobilization. Additionally, as the company’s success grew so, too, did its geographic range. In 1960, Aetna entered the international arena when it acquired the Canadian company, Excelsior Life Insurance. In the decades that followed, the international expansion continued with the company investing in ventures throughout Europe, Asia, and Latin America. Today, the company that started as a small cadre of local businessmen concerned about the state of the local fire insurance market enjoys success as a globally renowned member of the Fortune 100, dealing primarily in health insurance.
Patrick J. Mahoney is a Research Fellow in History & Culture at Drew University and former Fulbright scholar at the National University of Ireland Galway
FAQs
During the 19th century, a number of insurance companies established their headquarters in the city of Hartford, earning it the nickname, the “Insurance Capital of the World.” As time went on, the presence of insurance giants became vital to the social, economic, and political fabric of the capital city.
Is Hartford still the insurance capital of the world? ›
Nicknamed the "Insurance Capital of the World", the city holds high sufficiency as a global city, as home to the headquarters of many insurance companies, the region's major industry. Other prominent industries include the services, education and healthcare industries.
Is Connecticut still the insurance capital of the world? ›
Connecticut: The Insurance Capital of the World
Insurance is one of Connecticut's longest standing industries and largest employers.
What's the insurance capital of the world? ›
Aetna helped elevate Hartford to international recognition as the world's insurance capital.
How did Hartford become the capital of Connecticut? ›
Ultimately, the city of Hartford offered up a plot of land and a $500,000 check to construct a new capitol building, an offer the residents could not turn down. The public took it to a vote, and in 1875, Hartford was named the sole capital city of Connecticut.
What is Hartford insurance known for? ›
The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. We are proud to be widely recognized for our customer service excellence, sustainability practices, trust and integrity.
What is the world's largest insurance program? ›
World's largest insurance companies by net premiums written
| Ranking | Insurance Company Name | Domicile |
|---|
| 1 | UnitedHealth Group Incorporated (1) | United States |
| 2 | Centene Corporation (1) | United States |
| 3 | Elevance Health, Inc. | United States |
| 4 | China Life Insurance (Group) Company | China |
21 more rowsUnitedHealth Group is the largest insurance company in the world by market cap in 2023, according to Insurance Business. Among the 10 largest insurers, five are based in the U.S. 10 largest insurance companies in the world by market cap: UnitedHealth Group: $459 billion.
What was the Hartford Convention of 1814? ›
The Hartford Convention
Meeting in Hartford, Connecticut, in December 1814, party delegates secretly debated—and rejected—secession; instead, they drafted constitutional amendments strengthening state controls over commerce and militias.
Where is the insurance capital of USA? ›
Des Moines is a major center of the US insurance industry and has a sizable financial services and publishing business base. The city was credited as the "number one spot for U.S. insurance companies" in a Business Wire article and named the third-largest "insurance capital" of the world.
Health Care Service Corp. is the largest customer-owned health insurer in the U.S. and serves members in five states. It operates Blue Cross Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma and Texas. HCSC offers the following types of plans: Individual health insurance.
What is the largest insurance agency in the US? ›
Who is the biggest insurance broker in the U.S.? Marsh McLennan is the biggest insurance broker in the U.S. by revenue. 1 It is headquartered in New York City.
Why is Connecticut home to so many insurance companies? ›
How Did Hartford, CT Become the Insurance Capital of the World? It's location on the Connecticut River and proximity to the Atlantic Ocean meant merchants of many types came through the area to participate in the thriving transatlantic trade industry.
Where do insurance companies get their capital? ›
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs.
Who is the number 1 insurance company in America? ›
List of the largest car insurance companies by state. Although it's the most popular insurance company nationwide, Progressive is the largest company in just 15 states. State Farm is the top choice in 24 states, and Geico is the biggest in nine states.
What was the reason for founding Hartford? ›
Hartford, Windsor and Wethersfield were all founded during the 1630s. About 100 Puritans came to establish Hartford as a trading post along the Connecticut River. Thomas Hooker is credited with founding Hartford and had a major impact in establishing Hartford.
What is special about Hartford CT? ›
As the capital of Connecticut and the third-largest city in the state, Hartford is among the oldest cities in the United States. As the seat of state government and as a hub for employment, Hartford is also the center for arts and entertainment in the region.
Who founded the settlement of Hartford which became part of the Connecticut colony? ›
Thomas Hooker, a Puritan minister, left the Massachusetts Bay Colony and founded Hartford, Connecticut. Although a devout Puritan, he advocated the separation of religion from politics.
Why is Hartford so good? ›
Founded in 1635, Hartford is one of the oldest cities in the country and serves as the Connecticut state capital. With median home prices around $172,000, Hartford's 126,000 diverse residents enjoy a low cost of living, a wide range of housing options, access to higher education and lots of new development.
What type of insurance is The Hartford? ›
We're a property and casualty insurance company that's been helping small businesses for over 200 years.
Aetna and The Hartford were two such corporations. They specialize in insurance, including long-term disability insurance, and were major competitors in the industry. In late 2017, The Hartford bought Aetna's group disability insurance business for $1.45 billion.
When did Hartford become a capital? ›
In the fall of 1873, Hartford emerged victorious, becoming Connecticut's sole capital city, effective in 1875. With the decision made to make Hartford the seat of government in the state, the General Assembly authorized a million-dollar project for the construction of a new capitol building.
Why is Hartford the capital? ›
The more liberal offer of Hartford was accepted … and, in 1873, it was voted by the General Assembly that there should be only one capital and that it should be located at Hartford. The vote was ratified by the people as a Constitutional Amendment to take effect in 1875.”
Why was Hartford created? ›
Hartford, Windsor and Wethersfield were all founded during the 1630s. About 100 Puritans came to establish Hartford as a trading post along the Connecticut River. Thomas Hooker is credited with founding Hartford and had a major impact in establishing Hartford.
When did Hartford became state capital? ›
Hartford became the sole capital of Connecticut in 1875 after having been co-capital (with New Haven) of both colony and state since 1701.
Why did Connecticut have two capitals for a time? ›
In the early 1870s, the General Assembly decided that the costs and logistical headaches of maintaining government operations in two cities were too high, and declared Hartford to be Connecticut's sole capital city in 1873.
Who is the Hartford owned by? ›
The Hartford is owned by its shareholders, as it is a publicly traded company.
Why was the Hartford convention called by the New England states? ›
In December 1814, twenty-six New England Federalists from Massachusetts, Connecticut, Rhode Island, Vermont, and New Hampshire assembled in a convention in Hartford, Connecticut, to discuss their opposition to James Madison's administration and, in particular, to the ongoing war with England.
What is New Hartford known for? ›
New Hartford is home to Ski Sundown, a locally popular ski mountain that attracts many skiers and snowboarders in Litchfield County. It hosts several Slopestyle Competitions and winter events every year.
What is the main business of Hartford? ›
Hartford's Major Industries
The Hartford Region is home to six major industries: Insurance/Financial Services, Aerospace/Defense, Manufacturing, Healthcare, Broadcasting, and Distribution.
From 1703 to 1875, Connecticut had two capitals; sessions of the General Assembly met alternately in Hartford and New Haven. Since then, the capital has been Hartford.
What was a major impact of the Hartford convention? ›
The Hartford Convention resulted in a declaration calling on the Federal Government to protect New England and to supply financial aid to New England's badly battered trade economy.
What was the purpose of the Hartford convention quizlet? ›
The Hartford Convention was a meeting of New England Federalists held in Hartford Connecticut in the winter of 1814-15. These Federalist opposed the War of 1812 and held the convention to discuss and seek redress by Washington for their complaints and wrongs that the felt had been done.
What was the impact of the Hartford convention quizlet? ›
The effect of the Hartford convention had on the Federalist party was that they lost power and eventually the party was forgotten.
Who founded the settlement of Hartford which became part of the Connecticut Colony? ›
Thomas Hooker, a Puritan minister, left the Massachusetts Bay Colony and founded Hartford, Connecticut. Although a devout Puritan, he advocated the separation of religion from politics.
What is Hartford known as? ›
Known as the Insurance Capital of the World, Hartford is the home of several of the nation's leading insurance and financial services companies.
How were the Connecticut settlements of New Haven and Hartford begun? ›
John Hooker and John Davenport
Both groups of Puritans wound up in Boston in the early 1630s and both became dissatisfied with what they found there. Hooker struck out overland to establish Hartford in 1636. Davenport's party sailed into New Haven harbor to establish a new colony in 1638.
