That's the other side of the coin. Those are foreign insurers authorized by OSFI to carry on business in Canada. Why would Canadian law apply to operations of a parent company abroad? A branch is an extension of the parent company in Canada.
Most of our foreign-owned insurers come from either the States or Europe. The United States has anti-terrorist legislation, and so do most of the countries in Europe, so they're already subject to the client identification requirements, record keeping, and reporting requirements.