An entity incorporated outside the United States that provides insurance coverage to individuals or businesses within the state of Texas operates under specific regulations. This differs from a domestic insurer, which is incorporated within Texas, and a U.S. insurer, which is incorporated in another state. For instance, a company headquartered in London offering property insurance to a factory in Houston falls under this category.
The presence of these organizations expands market competition, potentially leading to more competitive premiums and a wider array of insurance products for Texas consumers. Their activity also brings international capital into the Texas economy. Historically, Texas has been attractive to these entities due to its large and diverse economy, including industries such as energy, agriculture, and technology, all requiring specialized insurance solutions.
