How many years of active transactions must foreign and alien insurers have in their business classes to be admitted?

The requirement for foreign and alien insurers to demonstrate a minimum of three years of active transactions in their specific business classes before being admitted is rooted in ensuring a level of stability and experience in their operations. This three-year period allows regulators to consider the insurer's financial stability, operational integrity, and their ability to handle the risks associated with the types of insurance they will be providing.

By having this requirement, the regulatory body ensures that only insurers with adequate proven track records are permitted to operate. This helps protect consumers and maintain the integrity of the insurance market. Insurers with fewer than three years of active transactions may not have built the necessary infrastructure, experience, and credibility, which could pose risks to policyholders and the overall insurance system.

Thus, the emphasis on this timeframe is a critical element in safeguarding the interests of the public and maintaining the reliability of insurers in the market.