Labuan International Business and Financial Centre (Labuan IBFC), Malaysia has won the best Asian Domicile award for the third year running at the APAC Captive Review Awards 2021. Labuan IBFC’s growth in captive insurance continues to outpace regional competitors, namely Singapore and Hong Kong cementing its leadership in this segment of reinsurance. Both Singapore and Hong Kong were also shortlisted in the same category as Labuan IBFC. The win was announced at a virtual awards ceremony held on 3 August by Captive Review, a leading global trade journal publication.
These global awards, recognises domiciles, providers of captive insurance services and owners who have demonstrated the highest levels of excellence over the past year. Specifically, the domicile category is awarded to the domicile embodying the highest standards of regulation, accessibility, efficiency, and commitment developing its captive insurance business in the region.
Captives are self-insurance strategic risk management vehicles licensed as reinsurance companies allowing these corporate entities direct access to the reinsurance market, providing it the ability to reduce the cost of risk coverage whilst simultaneously facilitating a holistic risk management strategy for the entire organisation. There are approximately more than 7000 captive insurance companies set up globally.
“We are honoured to have won this award for the third year running and it’s a testament to the partnership Labuan IBFC has forged with our intermediaries regionally and globally. Our continued commitment towards developing a robust risk management and reinsurance ‘tool-box’ for Asia is entrenched in our future roadmap for the jurisdiction as it’s a key element within our role as a wholesale financial and risk intermediation centre for the region,” said Farah Jaafar, Chief Executive Officer of Labuan IBFC Inc.
Labuan IBFC is home to more than 220 insurance and risk management licensees, with its industry association, Labuan International Insurance Association being the single largest industry group in the jurisdiction. Reinsurance and risk management is one of the fastest growing segments of Labuan IBFC’s financial services eco-system and is set to grow even more as the need for efficient risk transfer mechanisms in Asia grows.
As the fastest growing captive insurance centre in Asia and MENA, Labuan IBFC’s captive insurance business continued its upward trajectory in 2020, with total gross premium increasing by 8.7% to USD497.5 million, out of which 65.4%of the premiums are from foreign business. Labuan’s captive insurance business also accounts for 31.2% of the total premiums underwritten in the jurisdiction.
2020 was a boon year for Labuan captive business with 8 new captives formed, totaling 55 captives now licensed by the jurisdiction. This was the highest number of captives formed in both Asia and MENA in 2020. Labuan IBFC, is also the only jurisdiction in Asia that provides for the protected cell company (PCC) structure, with more than 10 PCCs licensed to date.
Labuan based intermediaries such as Principal Re Limited also received a win of their own for Captive Consultant of the Year, with Brighton Management, Labuan Insurance Manager Services, AFR Asia Pacific Limited and Nicholas Actuarial Solutions being shortlisted in their respective award categories.