Labuan IBFC Insurance Industry

Labuan IBFC’s insurance industry continues its vibrant growth in the past few years. Comprising not just reinsurers and direct insurers, Labuan IBFC also provides unique underwriting vehicles in the form of captives. Aside from conventional (re)insurance services, Labuan IBFC also offers Islamic (re)insurance, also known as (re)takaful, for those seeking Shariah-compliant protection. Other insurance-related businesses such as Insurance brokers, underwriting managers as well as insurance managers complete the supply chain by offering the needed services within the sector.

Below are insurance products available in Labuan IBFC to meet sophisticated clientele needs and expectations.

LABUAN INSURANCE BUSINESS

A Labuan insurance business is defined as an insurance business that is transacted in foreign currency and includes general, life, reinsurance, Labuan takaful and retakaful windows and captive insurance.

  • Labuan General Insurance Business 
  • Labuan Life Insurance Business 
  • Labuan Reinsurance Business 
  • Labuan Takaful and Retakaful Windows 
  • Labuan Captive Business

LABUAN INSURANCE-RELATED BUSINESS

Applicant for a Labuan insurance-related licence may carry on business as a Labuan insurance broker, Labuan insurance manager or Labuan underwriting manager. The activities of the Labuan insurance-related business are governed by the Labuan Financial Services and Securities Act 2010.

  • Labuan Insurance Broker 
  • Labuan Insurance Manager 
  • Labuan Underwriting Manager

LABUAN GENERAL TAKAFUL BUSINESS

A Labuan general takaful business is defined as a takaful business that is not a family takaful business, but includes a takaful business relating to mutual financial aid and assistance to participants for losses arising from perils such as accidents, fires, floods and burglaries.

  • Labuan Family Takaful Business 
  • Labuan Retakaful Business

APPLICATION FOR LICENCE

Application for a licence to carry out Labuan Insurance and Insurance-related activities can be made to the Director General of Labuan FSA.

Kensington Trust Labuan Limited is a licensed trust company in Labuan and is able to assist you with license application, establishment and administration of your Labuan company or branch.

LABUAN IBFC TAX SYSTEM

Labuan trading activity” includes banking, insurance, trading, management, licensing, shipping operations or any other activity which is not a Labuan non-trading activity. The Labuan entity shall pay either 3% of net profits as per audited accounts OR RM20,000/- upon election annually.

ANNUAL LICENCE FEE

All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:-

Type of Licence

Licence Fee (RM)

 

Captive Insurer10,000
Master Rent-A-Captive13,000
General Insurer50,000
Life Insurer50,000
Composite Insurer100,000
Underwriting Manager20,000
Insurance Manager20,000
Broker20,000