An insurance provider operating within a specific jurisdiction, but incorporated or domiciled in another, falls under a particular classification. This entity conducts insurance business within the former location under the regulatory oversight of that location. For example, a company headquartered in Canada selling insurance policies in the United States would be considered under this classification within the U.S. market.
The presence of such entities in a market can increase competition, potentially leading to more diverse product offerings and competitive pricing for consumers. Historically, their participation has been vital in transferring risk across national boundaries and fostering global economic stability. They also bring international best practices and innovative insurance solutions to local markets.
