While the captive insurance concept is young and showing signs of future potential in Asia, it is still unknown to many in the region.
This is according to Farah Jaafar-Crossby, CEO of Lauban IBFC, speaking ahead of the Asian Captive Conference.
The conference this year is jointly organised by Labuan IBFC and Labuan International Insurance Association (LIIA), and will be held on August 1 and 2 in Kuala Lumpur.
Both parties are hoping to encourage more participation from the risk-related and risk management industries across the Asian region.
"We are excited to organise the Asian Captive Conference 2018 (ACC 2018) again and we hope to see more delegates from the Asian region especially when the conference is a platform dedicated to the development of the self-insurance industry in the region,” said Jaafar-Crossby.
“The self-insurance sector is a niche market and we believe that there is a huge potential for structures such as captives and protected cell companies as a self-insurance tool, to grow in this region, especially with the ever-evolving risk landscape in the region."
She added that self-insurance is not just for big corporations, but is a suitable solution for medium-sized businesses, along with groups with shared interests, for example lawyers and medical practitioners, where there are advantages and cost-efficiency to be had in the pooling of risk.
“Captive insurance is a unique concept and it can be structured according to the needs of the business or indeed the idiosyncratic demands of the risk being mitigated. Indeed, Labuan IBFC offers a wide range of self-insurance solutions include group or association captives, which much like the protected cell companies, is unique to Labuan IBFC,” she added.
“For instance, tech start-ups that often have unique business models and risk profiles – with very much of their competitive edge stemming from concepts and technologies that are new to the market – their unique risks can be tailored underwritten by setting up a group or association captive and this could be used alongside with the traditional insurance approach,” explained Jaafar-Crossby.
The Labuan International Insurance Association chairman Raymond Wong Shu Yoon said: “We are pleased and honoured to have Labuan IBFC as a partner for this event again and we are definitely excited to see the turn out for this year and we hope to receive a positive response from the industry players in the Asian region.”
“We are optimistic and passionate about the growth of the captive insurance market in Asia and we hope that through initiatives such as hosting the ACC 2018, risk managers and practitioners alike will have a better understanding of the benefits of using captive insurance as an alternative risk management and mitigation tool,” added Wong.
Farah Jaafar-Crossby, Labuan, Asia Pacific, Captive Insurance