Detariffing is the act of removing the pricing regulations of an industry, set forth by tariffs created by a regulatory body. Detariffing allows an industry to price its goods or services at market value, as regulation is discontinued to promote market equilibrium.
       Insurance industry is now coming into its own in this country. Before the launching of the market, insurance was confined to the public. The availability of products is limited in the absence of competition, especially in life sector. In General Insurance, the major area received attention is detariffing.About 70% of its business was udner tariff and now its pricing have become market-based. Detariffing is a must in a highly competitive environment, General Insurance had to go for detariffing to secure the customers' advantages. In the other hand, detariffication requires an intensive monitoring of performance of companies and their solvency ratio. Insurance Regulatory and Development Authority (IRDA) plays a crucial role in detariffing.
       IRDA put the road map for bringing in the detariffing regime on track. During the transition from tariff to detariffi, companies may face few instances. They may be underwriting some risks in which they cannot handle in the future.  IRDA ensured that companies would not face such situation. The regulator would not go into detariffication in a short time. It must be well-planned. All the industry players will discussed and then moved to detariffication slowly. Initially, the policy terms and conditions remained unchanged, and the pricing will be flexible. This flexibility has enhanced the competition and thus causing a dip on the premium. Total detariffing had zero impact on the premium incomes of general insurers who recorded a 12.48% growth rate in January 2008, which was the first month after the industry was totally detariffed on Hanuary 1. It shows that the insurance industry is starting to stabiliza and players have not resorted to cut-throat competition to bad accounts and increase market share.


References:
Kumar, S. J. (2008, July). Detariffing Drive. Retrieved February 21, 2016, from https://www.insuranceinstituteofindia.com/downloads/Forms/III/Journal-2008-01/Full Marks.pdf
Detariffing Definition | Investopedia. (2007). Retrieved February 21, 2016, from http://www.investopedia.com/terms/d/detariffing.asp
  

Project: Detariffication in Malaysian General Insurance

Hi everyone,  this is a blog for the project of UECM2423 General Insurance, from Universiti Tunku Abdul Rahman. The main topic for this project is Detariffication in Malaysian General Insurance. Below is the outline and schedule of our project and the contents will be published weekly starting from this week, according toe the outline below:

Outline and Schedule of Plan

Topic: Detariffication in Malaysian General Insurance Sector

Group Leader: Lim Yen Wen

Member’s Name	ID	Tutorial Group
Lim Yen Wen	1305866	4
Ng Chun Hsiang	1305401	4
Tan Kah Hong	1306079	4
Tang Hui Ying	1304941	4
Yaw Xin Yi	1305941	4

WEEK	TASK NAME	COMPLETION
1	Select topic for our project. Do research and reading about our topic. Searching for information from books, articles, internet and other resources.
2	Group discussing and gather information in detail. Divide and arrange duties among members. Blog is created for the topic. Research and analyse the topic
3	Research and analysis : Subtopics: Planned and proposed outline and schedule of plan
4	Research and analysis : Subtopic: Brief introduction about the topic, Detariffication in Malaysian General Insurance Sector
5	Research and analysis : Subtopic: Tariff Theory
6	Research and analysis : Subtopic: General Insurance before detariffication
7	Research and analysis : Subtopic: Detariffication in other countries
8	Research and analysis : Subtopic: Expectation in the implementation of detariffication
9	Research and analysis : Subtopic: Impact and different point of view in detariffication
10	Research and analysis : Subtopic: Reaction from the public         Conclusion
11-13	Presentation of the topic