Services: Labuan Insurance and Reinsurance

Labuan Insurance and Reinsurance

All insurance and reinsurance related entities set up in Labuan IBFC are regulated under the Labuan Financial Services and Securities Act 2010, Part VII, specifically provisions contained in Sections 102 to 107.

These entities are deemed Labuan Trading Companies as defined in Section 2 of the Labuan Business Activity Tax Act 1990, and all Labuan Trading Companies have a yearly election of either paying a flat tax rate of MYR20,000 per annum, or 3 percent of audited net profits.

  • Direct insurance – life / general / composite
  • Re-insurance
  • Insurance managers
  • Underwriting managers
  • Insurance brokers
  • Captive insurance

An applicant is required to submit the prescribed forms relevant to the type of licence being applied. In general, the submission should include, but is not restricted to the following:

  • Business plan of the proposed company
  • Authenticated copy of the proposed Memorandum of Association and Articles of Association of the applicant
  • Certified extracts of the resolutions of the Board and the general meeting, if any, authorising the applicant to apply for a licence
  • Copy of the applicant's audited annual accounts for three preceding years
  • The applicant must submit a banker's certificate as evidence that working funds are maintained in the account of the applicant with a bank in Labuan
  • Applicant's corporate profile, which includes:
  • The name, place and date of establishment of the applicant
  • The names, addresses, qualifications and experience of the directors and officer responsible for the overall management of the affairs of the applicant
  • The name and address of each member who holds 10% or more of the voting shares of the applicant
  • Declaration by the applicant on the probity of its directors and officers responsible for the management of the Labuan insurance and insurance-related entity.

An applicant is required to submit the prescribed forms relevant to the type of licence being applied. In general, the submission should include, but is not restricted to the following:

  • Labuan insurers are required to submit within six months after close of each financial year-end, 4 copies each of their audited annual balance sheet, profit and loss account, revenue account and in the case of life insurance business, an actuarial valuation report
  • A foreign Labuan insurer established as a branch in Labuan is also required to also submit the latest audited annual balance sheet of its parent company
  • In the case of other Labuan insurance-related entities, they are only required to submit 4 copies each of their audited annual balance sheet and profit and loss account, and
  • Provide statistics and information required in relation to prudential regulation and business operation to Labuan FSA from time to time.
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