The Insurance Act was amended in 1968 to regulate investments and set minimum solvency margins. The Tariff Advisory Committee (TAC) was set up then to mandate policy wordings (insuring clause, terms, conditions, clauses, warranties, etc) and regulate general insurance premium rates.
In 2007, the Indian general insurance market made the transition from a tariff based regime to a more market driven system for premiums. The market driven system required data for actuarial and underwriting decisions. Historical data acts as the basis for future rates for insurers. Absence of good data has implications on pricing, reserving and solvency margin requirements.
