Labuan Insurance

Labuan insurance business means insurance business transacted in foreign currency and it includes life, general, reinsurance and captive insurance but does not include domestic insurance business. Labuan insurance may carry on reinsurance of domestic insurance business, in Malaysia currency and such other business as may specified by The Authority. The activities are governed by the Labuan Financial Services and Securities Act 2010.

General Insurance


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

Licensing and Operational Requirement

  1. Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan amounting to RM7.5 million equivalents in any foreign currency
  2. Applicant must be a member of Labuan International Insurance Association
  3. Applicant must provide a Letter of guarantee or undertaking from the parent company to The Authority
  4. Applicant for licence to carry on general insurance business in Labuan must:
    • Have an operational management office in Labuan managed by a management team that has an adequate knowledge and expertise in 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 The Authority
  6. The person in control, director and PO of a Labuan general insurer must be of fit and proper persons and shall not be subject of any adverse report from any reliable sources.

Life Insurance


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 and Operational Requirement

  1. Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan amounting to RM7.5 million equivalents in any foreign currency
  2. Applicant must be a member of Labuan International Insurance Association
  3. Applicant must provide a Letter of guarantee or undertaking from the parent company to The Authority
  4. Applicant for licence to carry on life insurance business in Labuan must:
    • Have an operational management office in Labuan managed by a management team that has an adequate knowledge and expertise in 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 The Authority
  6. The person in control, director and PO of a Labuan life insurer must be of fit and proper persons and shall not be subject of any adverse report from any reliable sources

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 conducting either a general or life reinsurance business.

Licensing and Operational Requirement

  1. Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan; amounting to RM10.0 million equivalents in any foreign currency
  2. Applicant must be a member of Labuan International Insurance Association
  3. Applicant must provide a Letter of guarantee or undertaking from the parent company to The Authority
  4. Applicant for licence to carry on reinsurance business in Labuan must
    • Have an operational management office in Labuan managed by a management team that has an adequate knowledge and expertise in 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 The Authority
  6. The person in control, director and PO of a Labuan reinsurer must be of fit and proper persons and shall not be subject of any adverse report from any reliable sources

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