Local incorporation is required for the provision of insurance and reinsurance services. The insurance or reinsurance activity can only be carried out by public limited companies or by the Banco de Seguros del Estado.
"Article 2
Public or private companies to develop insurance or reinsurance activity must be established in the country and be authorized by the Executive Power, with the advice and control of the Superintendency of Financial Services of the Central Bank of Uruguay.
[...]
Article 3
The Executive Power, with the advice of the Central Bank of Uruguay, will dictate the rules for the installation and operation of insurance and reinsurance companies, including mutual ones, within a period of one hundred and eighty days from the entry into force of this Law. [...]" (Insurance Law (No. 16426 of 10/14/1993), last amended by Law No. 19,678 of 10/26/2018, Articles 2 and 3 [google translation])
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"Article 2
Authorized entities. The insurance or reinsurance activity can only be carried out by public limited companies or by the Banco de Seguros del Estado.
In the case of public limited companies, they must mandatorily establish in their bylaws that their shares will be necessarily registered and only transferable with prior authorization from the Superintendency of Insurance and Reinsurance. [...]" (Decree regulating public or private entities that develop insurance or reinsurance activity within the national territory (No. 354/994 of 08/17/1994), last amended by Decree No. 108/008 of 02/25/2008, Article 2 [google translation])
Insurance Law (No. 16426 of 10/14/1993), last amended by Law No. 19,678 of 10/26/2018, Articles 2 and 3 
Decree regulating public or private entities that develop insurance or reinsurance activity within the national territory (No. 354/994 of 08/17/1994), last amended by Decree No. 108/008 of 02/25/2008, Article 2
[<a href="https://www.impo.com.uy/bases/leyes/16426-1993">Law</a>],[<a href="https://www.impo.com.uy/bases/decretos/354-1994">Decree</a>]