www.captiveinternational.com INTERVIEW: FARAH JAAFAR-CROSSBY
“Labuan is the only jurisdiction
out of these three in the Asian
region to incorporate captives last
year—not one but six.”
Driving growth in the region
There are many types of captive insurance
vehicles available in Labuan IBFC, such as
single/pure captives, group/association
captives, master rent-a-captives, subsidiary
rent-a-captives and cell captives—the latter
of which includes protected cell companies
(PCCs). Labuan IBFC is the only jurisdiction in
Asia to offer both conventional and Shariah-compliant
Labuan formed six new captives and
surrendered two licences in 2017—compared
to forming two and surrendering three in
2016—bringing the total number of active
captives to 43.
The jurisdiction’s 43 captives in 2017
comprise 33 pure captives, three master rent-a-
captives, one rent-a-captive, two subsidiary
rent-a-captives, and four PCCs.
Takaful captives, making us a key player in
the global Islamic captive insurance sector,”
As at December 2016, the total earned
premium for Labuan’s captive insurance
business was $252 million, an increase of 18.8
percent from 2015.
In between 2011 to 2016, the collective
premiums were in the range of between $320
million and $430 million. The engineering sector
continued to contribute the highest to gross
premiums with 37.7 percent or $131.3 million
of the total of $348.6 million in 2016.
In fact, for 2016 the majority of risk
underwritten was foreign, amounting to 54
percent, reflecting Labuan IBFC’s increasing
role as a regional risk management centre.
Jaafar-Crossby envisages the trend to remain
the same in 2017.
iStock Photo / joakimbkk