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Labuan Insurance Business
A Labuan insurance business is defined as an insurance business that is transacted in foreign currency and includes general, life, reinsurance, Labuan takaful and retakaful windows and captive insurance.
Labuan General Insurance Business
A Labuan general insurance business is defined as an insurance business which is not life insurance but includes accident, medical, surgical and hospital expenses insurance.
- Applicant must maintain a minimum paid-up capital or working funds with a bank in Labuan amounting to RM7.5 million or its equivalent in any foreign currency.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- Applicant for a licence to carry on a general insurance business in Labuan must:
- establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
- appoint a licensed Labuan underwriting manager.
- Appointment of any person in control, director or principal officer (PO) of a Labuan general insurer must obtain prior approval from Labuan FSA. Notwithstanding, Labuan general insurers that are established as a branch are not required to obtain approval on the appointment of their directors.
- The person in control, director and PO of a Labuan general insurer must be fit and proper persons and shall not be subject of any adverse report from any reliable sources.
- All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:Type of LicenceLicence FeeGeneral InsurerRM50,000USD15,000If any of the above insurance licensees uses a protected cell company (PCC) structure, the annual fee would be as follows irrespective of the type of licence:PCC StructureLicence FeeCoreRM30,000USD9,500Each CellRM10,000USD3,000
Labuan Life Insurance Business
A Labuan life insurance business is defined as an insurance business connected with any policy by which payment of policy monies is insured on death or on the happening of any contingency dependent on the termination or continuation of human life and includes any incidental extension of cover and reinsurance of such business.
- Applicant must maintain a minimum paid-up capital or working funds with a bank in Labuan amounting to RM7.5 million or its equivalent in any foreign currency.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- Applicant for a licence to carry on a life insurance business in Labuan must:
- establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
- appoint a licensed Labuan underwriting manager.
- Appointment of any person in control, director or principal officer (PO) of a Labuan life insurer must obtain prior approval from Labuan FSA. Notwithstanding, Labuan life insurers that are established as a branch are not required to obtain approval on the appointment of their directors.
- The person in control, director and PO of a Labuan life insurer must be fit and proper persons and shall not be subject of any adverse report from any reliable sources.
- All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:Type of FeeLicence FeeAnnual FeeRM50,000USD15,000If any of the above insurance licensees uses a protected cell company (PCC) structure, the annual fee would be as follows irrespective of the type of licence:PCC StructureLicence FeeCoreRM30,000USD9,500Each CellRM10,000USD3,000
Labuan Reinsurance Business
A Labuan reinsurance business is defined as an insurance business whereby the reinsurer assumes a part of the liability under an original contract of insurance of another insurer or reinsurer. A Labuan reinsurer may be conducting either a general or life reinsurance business.
- Applicant must maintain a minimum paid-up capital or working funds with a bank in Labuan amounting to RM10 million or its equivalent in any foreign currency.
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
- Applicant for a licence to carry on a reinsurance business in Labuan must:
- establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
- appoint a licensed Labuan underwriting manager.
- Appointment of any person in control, director or principal officer (PO) of a Labuan reinsurer must obtain prior approval from Labuan FSA. Notwithstanding, Labuan reinsurers that are established as a branch are not required to obtain approval on the appointment of their directors.
- The person in control, director and PO of a Labuan reinsurer must be fit and proper persons and shall not be subject of any adverse report from any reliable sources.
Labuan Takaful and Retakaful Windows
The setting up of takaful or retakaful windows do not require a separate licence and there is also no additional licence fee involved. Applications made by applicants of existing licensees under the Labuan Islamic Financial Services and Securities Act 2010 to set up takaful or retakaful windows will be considered by Labuan FSA based on the following submissions:
- Certified true copy of board resolution pertaining to the proposed establishment of takaful or retakaful window.
- Business plan.
- Three years’ financial projections for the takaful or retakaful activities; and
- Information on its own internal Shariah Advisory Board (SAB).
Labuan Captive Business
A Labuan captive business is defined as an insurance business where the insured is a related corporation or an associated corporation of the Labuan insurer or where the insured is any other person in respect of whom the Labuan insurer is authorised by Labuan FSA to provide insurance or reinsurance.
- 1. Applicant must maintain a minimum paid-up capital or working fund amounting to a specified amount in any foreign currency with a bank in Labuan in accordance with the type of captive licence as follows:Paid-up Capital / Working FundsAmount (RM)Pure/Single Captive300,000Group Captive/Association Captive300,000Multi-owner Captive300,000Master Rent-a-Captive500,000Subsidiary Rent-a-Captive500,000Cell Captive500,000
- Applicant must be a member of the Labuan International Insurance Association.
- Applicant for a licence to carry on a captive business in Labuan must:
- establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
- appoint a licensed Labuan underwriting manager.
- establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
- Appointment of any person in control, director or principal officer (PO) of a Labuan captive insurer must obtain prior approval from Labuan FSA.
- The person in control, director and PO of a Labuan captive insurer must be fit and proper persons and shall not be subject of any adverse report from any reliable sources.
- Applicant must be a member of the Labuan International Insurance Association.
- Annual FeesAmountPure/Single CaptiveRM10,000USD3,000Group Captive / Association CaptiveRM10,000USD3,000Master Rent-a-CaptiveRM13,000USD4,000Subsidiary Rent-a-CaptiveRM3,000USD1,000PCC Captive (Core)RM30,000USD9,500PCC Captive (Cell)RM10,000USD3,000Multi-owner CaptiveRM10,000USD3,000
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