The Labuan Financial Services Authority (LFSA) licensed three new captive insurers and five protected cell in 2015, taking the domicile’s total number of entities to 40.
The LFSA’s report on 2015, Connecting Asia’s Economies, revealed there was slight growth in gross written premiums for captive insurance business. It increased by 4.3 percent to $354 million, compared to $339.3 million in 2014.
According to the report, Asia has an increasing appetite for captive insurance.
Labuan and Singapore have been joined by Hong Kong in competing for captive business. It is now offering a tax incentive for international business underwritten by its captive entities.
Labuan is currently working on diversifying its growth sectors to sustain development. A ‘masterplan’ is being developed to position the domicile as the preferred centre for captive solutions in Asia.
According to the LFSA’s report, if Labuan has the right regulation in place, “captives can augur well as a growth sector for the region as risk owners increasingly prefer to manage risks on their own; albeit in a systematic and professional manner akin to a commercial insurer’s”.
