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.

key highlights

  • Total gross premiums recorded a marginal growth of 4.5% to USD1.6 billion, mainly from (re)insurance business in 2020
  • The industry’s overall profitability improved by 87.1% to USD364.1 million in 2020 (2019: USD194.6 million) buoyed by favourable underwriting performance
  • Total insurance assets grew by 9.9% to USD5.1 billion which was mainly attributable to higher investments in fixed deposits and money market instruments in 2020
  • Fixed deposits and money market instruments remained the largest asset share of 24% or USD1.2 billion in 2020

  • Licensing & Operational Requirements
  • Fees
  • Licensing & Operational Requirements

    1. 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.
    2. Applicant must be a member of the Labuan International Insurance Association.
    3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
    4. 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.
    5. 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.
    6. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of Licence
    Licence Fee
    General Insurer
    RM50,000
    USD15,000
    If 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 Structure
    Licence Fee
    Core
    RM30,000
    USD9,500
    Each Cell
    RM10,000
    USD3,000
  • Licensing & Operational Requirements

    1. 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.
    2. Applicant must be a member of the Labuan International Insurance Association.
    3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
    4. 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.

    5. 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.
    6. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of Licence
    Licence Fee
    General Insurer
    RM50,000
    USD15,000
    If 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 Structure
    Licence Fee
    Core
    RM30,000
    USD9,500
    Each Cell
    RM10,000
    USD3,000
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.

  • Licensing & Operational Requirements
  • Fees
  • Licensing & Operational Requirements

    1. 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.
    2. Applicant must be a member of the Labuan International Insurance Association.
    3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
    4. 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.
    5. 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.
    6. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of Fee
    Licence Fee
    Annual Fee
    RM50,000
    USD15,000
    If 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 Structure
    Licence Fee
    Core
    RM30,000
    USD9,500
    Each Cell
    RM10,000
    USD3,000
  • Licensing & Operational Requirements

    1. 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.
    2. Applicant must be a member of the Labuan International Insurance Association.
    3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
    4. 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.

    5. 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.
    6. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Type of Fee
    Licence Fee
    Annual Fee
    RM50,000
    USD15,000
    If 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 Structure
    Licence Fee
    Core
    RM30,000
    USD9,500
    Each Cell
    RM10,000
    USD3,000
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.

Licensing & Operational Requirements

  1. 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.
  2. Applicant must be a member of the Labuan International Insurance Association.
  3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
  4. 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.

  5. 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.
  6. 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.

  • Licensing & Operational Requirements
  • Fees
  • Licensing & Operational Requirements

    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 Funds
    Amount (RM)
    Pure/Single Captive
    300,000
    Group Captive/Association Captive
    300,000
    Multi-owner Captive
    300,000
    Master Rent-a-Captive
    500,000
    Subsidiary Rent-a-Captive
    500,000
    Cell Captive
    500,000

    1. Applicant must be a member of the Labuan International Insurance Association.
    2. 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.
    3. Appointment of any person in control, director or principal officer (PO) of a Labuan captive insurer must obtain prior approval from Labuan FSA.
    4. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Annual Fees
    Amount
    Pure/Single Captive
    RM10,000
    USD3,000
    Group Captive / Association Captive
    RM10,000
    USD3,000
    Master Rent-a-Captive
    RM13,000
    USD4,000
    Subsidiary Rent-a-Captive
    RM3,000
    USD1,000
    PCC Captive (Core)
    RM30,000
    USD9,500
    PCC Captive (Cell)
    RM10,000
    USD3,000
    Multi-owner Captive
    RM10,000
    USD3,000
  • Licensing & Operational Requirements

    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 Funds
    Amount (RM)
    Pure/Single Captive
    300,000
    Group Captive/Association Captive
    300,000
    Multi-owner Captive
    300,000
    Master Rent-a-Captive
    500,000
    Subsidiary Rent-a-Captive
    500,000
    Cell Captive
    500,000

    1. Applicant must be a member of the Labuan International Insurance Association.
    2. 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.

    3. Appointment of any person in control, director or principal officer (PO) of a Labuan captive insurer must obtain prior approval from Labuan FSA.
    4. 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.

  • Fees
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:
    Annual Fees
    Amount
    Pure/Single Captive
    RM10,000
    USD3,000
    Group Captive / Association Captive
    RM10,000
    USD3,000
    Master Rent-a-Captive
    RM13,000
    USD4,000
    Subsidiary Rent-a-Captive
    RM3,000
    USD1,000
    PCC Captive (Core)
    RM30,000
    USD9,500
    PCC Captive (Cell)
    RM10,000
    USD3,000
    Multi-owner Captive
    RM10,000
    USD3,000
List of Labuan Insurance & Insurance-Related Entities

  • A
  • B - C
  • D - G
  • H - K
  • L - P
  • Q - T
  • U - Z
  • 0 - 9
List of Labuan Insurance & Insurance-Related Entities

  • A
  • B - C
  • D - G
  • H - K
  • L - M
  • S - T
  • U - Z
  • 0 - 9
  • A
    • A P INSURANCE LIMITED
    • Absolute Financial Solutions Ltd.
    • ACURRA INTERNATIONAL LIMITED (formerly known as ARL International Limited)
    • ACURRA PCC LIMITED (formerly known as Archipelago Insurance PCC Limited)
    • ADDi Bluecircle Limited
    • AFR Asia Pacific Limited
    • AIG Re-Takaful (L) Berhad
    • AirAsia Corporate Services Limited
    • Al Wasl Insurance Brokers Limited
    • Allianz SE General Reinsurance Branch Labuan
    • Allianz SE Life Reinsurance Branch Labuan
    • ALLIED INSURANCE PCC LIMITED (formerly known as GOLDASSURANCE LIMITED)
    • Allied World Assurance Company, Ltd (Labuan Branch)
    • AON REINSURANCE MALAYSIA LIMITED (formerly known as AON BENFIELD MALAYSIA LIMITED)
    • APPB INSURANCE BROKERS LIMITED
    • ARCHIPELAGO INSURANCE LIMITED
    • Archipelago Life Insurance Limited
    • ASIA OILS CAPTIVE PTE. LTD.
    • Asia Reinsurance Brokers (Labuan) Ltd
    • Asia Specialty Insurance Limited
    • Asia Star Reinsurance (Labuan) Bhd
    • Aster Underwriting Agency (Labuan) Limited
    • Axinan Labuan Limited
  • B - C
    • Beazley Labuan Limited
    • Berkley Insurance Company (Labuan Branch)
    • Berkshire Hathaway Specialty Insurance Company
    • BEST RE (L) Limited
    • BEST RE Family (L) Limited
    • BGC INSURANCE (L) LIMITED
    • BIB ASIA (L) BERHAD
    • BIB Asia First PCC (L) Bhd.
    • Bill Morrisons International Ltd.
    • Biru Rose Reinsurance Ltd.
    • BIST Inc.
    • BLAKFORD INSURANCE LTD.
    • BlueStar AMG Malaysia Limited
    • BODY WORK INSURANCE CO., LTD
    • Bogazici Insurance and Reinsurance Brokers Labuan Branch
    • Brighton Management Limited
    • Brightstar (L) Re Ltd.
    • BrokerFish Limited
    • BYRNECUT INSURANCE MALAYSIA LTD
    • Canopius Labuan Pte Limited
    • CapFin (Labuan) Limited
    • CATLIN LABUAN LIMITED
    • CCR RE Labuan Branch
    • CHALLENGE GROUP INC.
    • Challenge Group Underwriters & Managers (L) Inc.
    • CHARLES MONAT ASSOCIATES LIMITED
    • Chaucer Labuan Limited
    • China Property & Casualty Reinsurance Company Ltd, Labuan Branch
    • Chubb Tempest Reinsurance Ltd., Labuan Branch
    • CIB Global Limited
    • Confiance International Reinsurance Brokers L.L.C.
    • COVERS INTERNATIONAL LIMITED
    • CSI International Specialty Brokers Limited
  • D - G
    • Delima Insurance (Labuan) Ltd
    • DELPHI INTERNATIONAL INSURANCE BROKER LTD.
    • deVere and Partners (L) Ltd
    • deVere and Partners (M) Ltd
    • DL Balance Co., Ltd.
    • EDGEPROP ASSURANCE LIMITED
    • EMG Re Ltd
    • ENERGAS INSURANCE (L) LIMITED
    • ERRI Company, Ltd.
    • ETIQA LIFE INTERNATIONAL (L) LTD
    • ETIQA OFFSHORE INSURANCE (L) LTD
    • Excelsior Worldwide Limited
    • Factory Mutual Insurance Company, Labuan Branch
    • FARRINGDON ASSET MANAGEMENT LTD.
    • FEIC (Asia) Limited
    • FZ Labuan Insurance Pte. Ltd.
    • GARAM INSURANCE PCC LTD.
    • GENERAL INSURANCE CORPORATION OF INDIA, LABUAN BRANCH
    • General Reinsurance Labuan Branch (Life/ Health)
    • General Reinsurance, Labuan Branch
    • Genting (Labuan) Limited
    • GHR Risk Management (Labuan) Limited
    • GIA Company Ltd.
    • GLOBAL INSURANCE LTD.
    • GLOBALEYE (LABUAN) LTD
    • GMR CAPTIVE PTE LTD
    • Green Oak PCC Ltd.
    • GUY CARPENTER & CO LABUAN LTD
  • H - K
    • Haakon (Asia) Ltd.
    • HANNOVER RETAKAFUL LABUAN BRANCH FAMILY
    • HANNOVER RETAKAFUL LABUAN BRANCH GENERAL
    • Hansard Development Services (Asia Pacific) Limited
    • Hansard International Limited, Far East
    • Hardy Underwriting Labuan Limited
    • HARVESTKORP FINANCIAL SOLUTION PTE LTD
    • HDI Global SE, Labuan
    • Hebden Consulting Ltd.
    • Helvetia Swiss Insurance Company Ltd (Labuan Branch)
    • HHH Insurance Brokers Co., Ltd.
    • HLAP Ltd.
    • Holborn (Labuan) Limited (formerly known as Greenwood Private Wealth Management Ltd)
    • Howden (L) Ltd. (formerly known as CH Global (L) Limited)
    • Howden PCC (L) Bhd. (formerly known as CH International PCC (L) Bhd.)
    • Hub Risk Solutions Limited
    • IAG RE LABUAN (L) BERHAD
    • IMPERIUM CAPITAL LIMITED
    • Infinity Financial Solutions Ltd
    • INTERNATIONAL GENERAL INSURANCE COMPANY LTD. LABUAN BRANCH
    • International Risk Management Consultants Ltd
    • IPP Wealth Managers Ltd
    • IRM Limited
    • ITA Asia Limited
    • J Re Ltd.
    • JA ASSURE LABUAN LIMITED
    • Just Service Global Ltd.
    • K.M.Dastur & Company Private Limited
    • KLK Assurance (Labuan) Limited
    • Korean Reinsurance Company Labuan Branch
    • Kuwait Reinsurance Company - Far East Regional Office
  • L - M
    • Labuan Insurance Management Services Limited
    • LABUAN REINSURANCE (L) LTD
    • LE Captive Limited
    • LE Risk Management (Labuan) Limited
    • Liberty Specialty Markets Singapore Pte Limited, Labuan Branch (formerly known as Liberty International Underwriters Private Limited, Labuan Branch)
    • LION INSURANCE COMPANY LIMITED
    • LLOYD'S LABUAN LIMITED
    • Lockton Re (L) Ltd.
    • M1 MALAYSIA LTD.
    • Malakut Insurance Brokers (Asia) Limited
    • Mandarin Re Ltd (formerly known as TranssibRe Overseas Ltd)
    • Manulife Insurance Labuan Limited
    • MAPFRE RE Labuan Branch Office
    • Markel International Labuan Limited
    • MARSH MANAGEMENT SERVICES LABUAN LIMITED
    • MAWSON FLINDERS COOK MERCANTILE PTE. LTD.
    • Mazen Global Insurance Ltd
    • MED RE SDN. BHD.
    • Misthos Group Malaysia Inc.
    • MIT Captive Ltd
    • MITSUI SUMITOMO INSURANCE CO., LTD.
    • MMR Insurance Incorporated
    • MS Amlin AG, Labuan Branch
    • MS Amlin Labuan Limited
    • Munich Re Syndicate Labuan Ltd
  • S - T
    • SAG Specialty Limited
    • Saudi Reinsurance Company, Labuan Branch
    • SCOR REINSURANCE ASIA-PACIFIC PTE LTD, LABUAN BRANCH
    • SCOR SE
    • Seaquest Intermediaries (L) Limited
    • Selcare Insurance PCC Limited
    • SENHENG CAPTIVE INSURANCE PTE LTD.
    • Sime Darby Insurance Pte. Ltd.
    • Simon Re Ltd.
    • Singapore Reinsurance Corporation Limited, Labuan Branch
    • Sirius International Insurance Corporation (publ), Labuan Branch
    • Something Re. Co., Ltd.
    • Starr Underwriting Agents (Labuan) Limited
    • SUNWAY CAPTIVE INSURANCE LTD
    • Supremin International Pte. Ltd.
    • Swiss Re Corporate Solutions Ltd (Labuan Branch)
    • Synergy IFA Limited (formerly known as GTS Wealth Planners Limited)
    • Synergy Reinsurance Specialist (Labuan) Limited
    • TAIPING REINSURANCE COMPANY LIMITED, LABUAN BRANCH
    • TG Insurance Malaysia Ltd.
    • Three Sixty Financial Inc
    • Titan Financial Ltd.
    • TNB Global Captive (L) Ltd
    • TRUST INTERNATIONAL INSURANCE AND REINSURANCE CO. B.S.C. (C) TRUST RE, LABUAN
    • Tune Protect Re Ltd
    • Tygate Limited
  • U - Z
    • UIB ASIA LABUAN LTD
    • UNI FINANCIAL REINSURANCE SERVICES (L) LTD.
    • Virginia Surety Company, Labuan Branch
    • Visionary Insurance Company Limited
    • WARISAN CAPTIVE INCORPORATED
    • Watanabe Reinsurance Labuan Corporation
    • WENTWORTH INSURANCE COMPANY LIMITED, LABUAN BRANCH
    • WESTSTAR INSURANCE LIMITED
    • Willis Re Labuan Limited
    • Willis Towers Watson Management (Labuan) Limited (formerly known as Willis Management (Labuan) Limited)
    • XL Bermuda Ltd Labuan
    • XL INSURANCE COMPANY SE (LABUAN BRANCH)
  • 0 - 9
    • 3SC Capital Ltd.
  • A
  • B - C
  • D - G
  • H - K
  • L - P
  • Q - T
  • U - Z
  • 0 - 9
Find Labuan Banks and Investment Banks here
FAQs
  • 1. What is Labuan banking?

    Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA in any currency including Malaysian Ringgit where permitted by Bank Negara Malaysia.

  • 2. What is investment banking?

    Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.

  • 3. What is Islamic banking?

    Islamic banking is defined as a banking business that is in accordance with Shariah principles.

  • 4. Who may apply for Labuan banking licence?

    Organisations that meet the following minimum criteria may apply for a Labuan banking licence:

    • Must be a bank or financial institution
    • Possesses a sound track record
    • Accorded a good credit rating by acceptable rating agencies
    • Supervised by a competent regulatory authority; and
    • Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).

  • 5. What is the minimum working minimum fund for an investment bank?

    RM10 million or its equivalent in any other currency.

Stay ahead of the game
Access a wealth of information from Labuan IBFC from reports on forward-thinking research to insightful articles.
Get in touch
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Stay ahead of the game
Access a wealth of information from Labuan IBFC from reports on forward-thinking research to insightful articles.
Get in touch
Interested to setup your business in Labuan? Speak to our dedicated advisors to find out more.
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