Risk management in the form of self-insurance or captives in on the rise, due to it being an overall cost-efficient and customisable risk-mitigating tool, according to Danial Mah, director general of Labuan Financial Services Association (Labuan FSA).
Mah, speaking at the launch of the Labuan International Business and Financial Centre (Labuan IBFC) and Swiss Re Corporate Solutions’s event, explained that captives remain a “vital business segment” in Labuan IBFC, being the “leading jurisdiction in Asia for captive formations compared to other jurisdictions in the region such as Singapore and Hong Kong”.
He suggested that the leadership has continued into this year after four new captives were approved in Labuan IBFC between January and June, totalling 51 captives registered in the jurisdiction as of June this year.
The new captives represent a growth of 8.5 percent year-on-year and is “significant when contrasted with the fact that for the whole of last year, six captives were approved”.
Also speaking at the event, Andre Martin, head of innovative risk solutions the Asia Pacific at Swiss Re Corporate Solutions, said it was great to share more on the benefits captives can bring to organisations as a comprehensive risk financing strategy.
Martin added: “Today, we see a rise in demand for captive insurance across the region including Malaysia and expect this to increase as the risk management function advances and the corporate landscape evolves.”
“We look forward to continue working with customers to provide solutions in the captive space and are encouraged by the interest in alternative risk transfer solutions from this event.”
