The insurance industry players came together in 1975 primarily to lobby government over the provision of the proposed amendment to the 1968 Insurance Act, in particular the proposed amendment of section 61. This related to financial deposits of Insurers, Agents and Brokers, especially as the deposit was to be made a requirement of registration, whereas previously it had been an option available to the Minister.

Arising out of this lobbying exercise came the realization by many in the industry that there would be a benefit in forming an association to give the insurance industry on e voice in its dealings with government. Thus the Insurance Advisory Council was formed and its first constitution agreed in June 1976.