Labuan International Business and Financial Centre recorded growth of 11 percent in its captive insurance business in 2018, taking it to $400.5m in total assets, according to Farah Jaafar-Crossby, CEO of Labuan IBFC.
Labuan added six new captives in 2018, more than any other jurisdiction in Asia, bringing the total figure to 48.
Captive insurance has huge growth potential in Labuan. At the end of 2017, more than 6500 captives had formed globally, with Asia Pacific only accounting for around 2 percent of them. But this balance is expected to change in coming years, with Labuan likely to be a key beneficiary of that trend.
Labuan also claims to offer 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 protected cell companies.
In all, insurance premiums in Labuan grew by 19.1% last year, added Farah.
Meanwhile, Labuan IBFC has also teamed up with Swiss Re Corporate Solutions to host a conference titled “Adding Confidence to Captives: Managing Volatility via Self Insurance” on August 7 in Kuala Lumpur.
The conference is intended to enhance knowledge and understanding among corporates of risk management tools such as captives and protected cell companies that can help them better manage their risk, according to its organisers.
Labuan IBFC, Labuan, Domicile, Asia Pacific