Labuan Insurance License

Labuan Insurance License

There are several Labuan insurance licenses, namely Captive Insurance, Direct Insurance, Reinsurance, Insurance Broker, Insurance Manager and Underwriting Manager.

Labuan Insurance License

Captive insurance

Labuan Captive Insurance provides risk mitigation services for its parent company or a group of related companies and ensures the benefits of its underwriting earnings.

General Insurance

Labuan General Insurance is an insurance company that does not have life insurance but includes accident, medical, surgical and hospital expenses insurance.

Life Insurance

Labuan Life Insurance is an insurance company associated with any policy dependent on the termination or continuation of life.

Reinsurance

There are two types of Labuan reinsurance businesses.

  1. Conventional Labuan Reinsurance Business
  2. Labuan Retakaful Business – Labuan Islamic Reinsurance Business

Labuan Reinsurer assumes part of the liability under an original insurance contract from another insurer.

Insurance Broker

Labuan Insurance Broker can make Labuan commercial insurance (direct insurance) and reinsurance arrangements for any insurer seeking such services.

Insurance manager

Labuan Insurance Manager provides managerial and administrative (back office) services to Labuan’s (re)insurers and captive owners.

Underwriting Manager

Labuan Underwriting Manager provides administrative and underwriting services to Labuan (re)insurers and captive owners.

Labuan Insurance License Type

Insurance License TypeDefinition of Labuan Insurance Business CategoryPaid Up CapitalAnnual License Fee
Life/General
Insurance
* A Labuan life insurance business is defined as an insurances business connected with any policy by which payment of policy monies is insured on death or the happening of any contingency dependent on the termination or continuation of human life and includes any incidental extension and reinsurance of such business. Actuary Reporting is required.
*Min. Solvency Margin: RM7.5 million or 20% of net premium income of the preceding year, whichever is greater
Paid-up Capital: RM7.5millionRM50,000
Reinsurance·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 conduction either a general or life reinsurance business.
Min. Solvency Margin: RM7.5 million or 20% of net premium income of the preceding year, whichever is greater
Paid-up Capital: RM7.5million
Captive
Insurance
Single/Multiple Owners
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 Labuan FSA authorizes the Labuan insurer to provide insurance or reinsurance.
*Min. Solvency Margin: RM 300,000 or 20% of net premium income of the preceding year or 3% of the actuarial valuation of liabilities for life insurance, whichever is greater
Paid-up Capital: RM300,000RM10,000
Master Rent-A-Captive* Min. Solvency Margin: RM 500,000 or 20% of net premium income of the preceding year or 3% of the actuarial valuation of liabilities for life insurance, whichever is greaterPaid-up Capital: RM500,000RM13,000
Insurance Underwriter Manager* A person who is licensed to provide underwriting services, including administration of the Labuan insurers
* Min. Solvency Margin: Not Applicable
Paid-up Capital: RM300,000RM20,000
Insurance
Manager
* A licensed to provide management or administration services related to a Labuan insurance business but does not include a Labuan underwriting manager.
*Min. Solvency Margin: Not applicable
Paid-up Capital: RM300,000RM20,000
Insurance
Broker
* A person licensed to arrange Labuan insurance business on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance.
* Labuan insurance broker may carry out financial planning activities.
* A Labuan insurance broker is prohibited from dealing with residents (except for high-net-worth individuals, reinsurance and others as defined by Labuan FSA from time to time) and broker for direct Malaysian risks.
* Min.Solvency Margin: Not Applicable
Paid-up Capital: RM300,000RM20,000
See also  HOW MUCH IS TOOL INSURANCE?