Alien Insurer
What Does Alien Insurer Mean?
Alien insurer is an insurance company that is formed and set up in one country, but sells and provides insurance to another country. The alien insurer follows the industry regulations of the country for it to sell its products there.
Insuranceopedia Explains Alien Insurer
They may seem semantically alike, but the terms alien insurer and foreign insurer have different meanings in the US.
A German insurance company, formed in Germany, that sells insurance policies in any state in the US is an alien insurer. An insurance company formed in the State of Wisconsin, but is represented by an agent in the State of New York to provide insurance for a New Yorker is an alien insurer.
People buy insurance from a foreign company (or an alien insurer) because the risks that they want covered are not offered by their domestic insurers, or the insurance companies in their state. The risk might be considered unusual. Lloyd’s of London, for instance, has a solid American clientele, specially among celebrities. Rock singer Bruce Springsteen has insured his vocal cords with this insurance company.
