Kuala Lumpur, 8 August 2019 – Labuan International Business and Financial Centre (Labuan IBFC) and Swiss Re Corporate Solutions recently launched an event entitled “Adding Confidence to Captives: Managing Volatility via Self Insurance”.
“Risk management in the form of self-insurance or captives is on the rise, due to it being an overall cost-efficient and customisable risk mitigating tool,”Danial Mah, Director General, Labuan Financial Services Association (Labuan FSA)
Andre Martin, Head of Innovative Risk Solutions APAC, Swiss Re Corporate Solutions added it was great to share more on the benefits captives can bring to organizations as a comprehensive risk financing strategy.
Earlier this year rating agency, AM Best, stated that it expects to see significant growth in the Asia Pacific domiciles for captives, including Labuan IBFC.
In terms of gross written premiums, Labuan’s captive insurance business increased by 12.8% to USD288 million in June 2019, compared with USD255 million of the same period in 2018.
Mah shared that captives remain a vital business segment in Labuan IBFC, being the leading jurisdiction in Asia for captive formations. This leadership is further entrenched in 2019, when 4 new captives were approved in Labuan IBFC between January to June 2019, totaling 51 captives registered in the jurisdiction as of June 2019
“Being a licensed insurance-related entity in such a large risk management eco-system provides for great access to coverage for these captives. Labuan IBFC is home to more than 200 insurance and risk management licensees and the industry Association”Farah Jaafar-Crossby CEO of Labuan IBFC Inc
The jurisdiction offers Asia’s widest range of self-insurance structures aside from pure single captives, with structure offerings that include mutual and association captives, rent-a-captives as well as the region’s only protected cell company and the Shariah-compliant takaful captives.