Labuan licenses 4 new captives, beats 2017 figures
Labuan Financial Services Authority (Labuan FSA) has approved four captive licenses in the first half of 2018 - the same level of growth as the entire financial year of 2017.
There are a total of 47 captives now approved in the domicile.
“Labuan IBFC is one of the fastest growing risk management centres in Asia,” said Dato’ Mohammed Azlan Hashim, chairman of Labuan IBFC Inc. “This is evidenced by the fact that it is one of the financial centres in the region that approved the most captive entities in 2017, with more than 60 percent of the premiums are non-Malaysian.”
Azlan added that self-insurance tools such as captives can be an ideal option to manage and mitigate new and emerging risks from digital threats.
“Risks are dynamic, and risk profiles in new technology are even more so. Needless to say the risks arising from digital threats are multifaceted. The ability to keep pace in this new digital landscape is no mean feat and perhaps, self-insurance coverage such as captive insurance is an ideal option to manage and mitigate these risks,” he said.
Azlan continued: “Indeed, captives provides a more flexible and innovative solution and offers the ideal vehicle to ‘incubate’ these risks. It is a unique concept and can be structured according to the needs of the business or according to the characteristic demands of the risk being mitigated.”
Labuan IBFC Inc CEO Farah Jaafar-Crossby added: “Labuan IBFC also offers Protected Cell Companies (PCC) and it is only available in this jurisdiction in the Asian region. There are also other financial centres in Asia that are currently exploring the use of this structure but the fact that we are the pioneer in the region – having the legislation set in 2010, gives us an edge among our peers in the region.”