Labuan, a territory off the coast of Malaysia, approved 18 new insurance and insurance-related entities in 2014.
The offshore financial centre also permitted one existing captive insurer to be converted to a general insurer
The 18 new insurance and insurance-related entities were comprised of one reinsurer, four captive insurers/takaful, five brokers, two underwriting managers and five cells established under the Protected Cell Company (PCC) structure to carry on captive insurance business.
However, the total number of Labuan insurance and insurance-related companies as at December 31, 2014 declined to 209, compared with 213 in 2013. Labuan revoked the licenses of five entities, while eight entities surrendered their licences. Three others licences had been regarded as null and void due to their inability to satisfy the licensing conditions.
2014 also witnessed the establishment of the first captive takaful in Labuan International Business and Financial Centre (IBFC), which is wholly-owned by a Sri Lankan company.
The Labuan IBFC has embarked on becoming a centre for Islamic finance through the issuance of sharia resolution on Labuan captive takaful.
Labuan FSA had also supported international efforts in strengthening of the international Islamic financial landscape which encompassed development of a global standard on collateralised murabahah agreement through the Bahrain-based International Islamic Finance Market (IIFM), in which Labuan FSA is a founding member.
Labuan, Asia-Pacific, Shariah, Malaysia