The Labuan International Business and Financial Centre (IBFC) has seen more than 50 percent increase in licensing application approvals for H1 2020, resulting in more than 800 licensed entities currently operating in the domicile.
In reinsurance, Labuan IBFC continued to see growth in the insurance industry with 11 new licenses being approved of which seven were captive insurance entities.
“Captive insurance is certainly growing in size as it now attributes 31.4 percent of total gross
premiums underwritten in Labuan IBFC, amounting to $267.9 million with 72.8 percent of the total captive premiums from international markets,” Datuk Danial Mah Abdullah, director-general of Labuan Financial Services Authority (FSA) said.
Abdullah continued: “This is in line with the status of Labuan IBFC as a regional wholesale risk intermediating centre. In fact, for the first half of 2020, 64.5 percent of total gross written premiums of the reinsurance industry originated from international markets.”
“We expect this percentage to increase as we develop Labuan even further as a centre of risk
management and reinsurance through innovation. For instance, Labuan IBFC is the only
jurisdiction in Asia that offers protected cell companies (PCC),” he added.
In September, Labuan IBFC reported that it registered seven new captives between January and June this year, bringing the total to 56.
Farah Jaafar-Crossby, CEO of Labuan noted: “The growth in licensed entities definitely evidences Labuan IBFC’s relevance as intermediaries continue to look for safe harbour jurisdictions, that are well regulated to international standards set by global multilateral organisations.”
Speaking at the Asian Captive Conference (ACC) earlier today, Abdullah outlined in his opening remarks, “notwithstanding the challenges and movement restrictions due to the COVID-19 outbreak, we are glad to continue to have growth, an increase in licenses approved during H1 2020”.
“Having said that, we remain cautious on the outcome in the second half of the year but am
optimistic that we will pull through this ‘COVID-19 rollercoaster year’ on a positive note,” he added.
“We in Labuan FSA are cognisant of the COVID-19 situation. Other than the safety precautionary measures, we have provided regulatory reliefs aimed at alleviating the operational difficulties of the market. We will continue to support the market players during this difficult and challenging time as we navigate the ‘new normal’ together. We are always engaging with our players on this,” he concluded.
In August, Jaafar-Crossby spoke to Captive Insurance Times as she revealed there are further developments in the pipeline for Labuan’s captive insurance market.
