LABUAN INSURANCE COMPANY

A Labuan Insurance Company is a licensed entity established under the Labuan Financial Services and Securities Act 2010 (LFSSA) to conduct insurance and reinsurance business in, from, or through Labuan International Business and Financial Centre (Labuan IBFC). It can engage in general, life, or composite insurance, as well as captive insurance for risk management within a corporate group.

The primary purpose is to provide an efficient, regulated platform for international insurance operations, including underwriting, risk transfer, and asset protection in a low-tax jurisdiction.

BENEFITS

Tax Efficiency : – Subject to Labuan’s attractive tax regime — 3% of audited net profits subject to fulfilment of the substance requirements.
Ease of Set-up : – Straightforward licensing and registration through Labuan FSA.
Supervised by a reputable regulatory authority (Labuan FSA) adhering to international standards.
Asset Protection : – Suitable structure for risk segregation and financial security.
Wide Range of Activities : – Can include reinsurance, captive insurance, insurance broking, and underwriting management.

CATEGORIES OF LABUAN INSURANCE COMPANY  

i) Direct Insurance – Life/General

Life insurance policy can be offered to high-net-worth (HNW) Malaysian individuals via Single Premium Life Policy – for Malaysian resident who spend at least RM20k on a policy in Labuan; OR Annual Premium Life Policy – for Malaysian resident who spend at least RM15k on a policy in Labuan.

Able to offer Bancassurance products in Labuan. While the products may be sold under the Labuan bank’s name, but the products must be underwritten by Labuan Insurers.

Able to offer marine, aviation and transit (MAT) insurance business.

ii) Reinsurance

A business whereby the reinsurer assumes a part of the liability under an original contract of insurance of another insurer or reinsurer.

iii) Insurance Manager

A person who is licensed to provide management or administration services related to Labuan insurance business but does not include a Labuan underwriting manager.

iv) Underwriting Manager

A financial group in Singapore establishes a Labuan investment bank to serve ASEAN-based clients for cross-border mergers & acquisitions and trade financing. The Labuan bank provides USD loans to exporters in Vietnam and Indonesia while also managing investment portfolios for high-net-worth individuals in Asia, benefiting from the 3% tax regime and regional market access.

v) Insurance Broker

Direct Insurance Business – may broke for all insurance except for direct Malaysian risks with any insurance company. 
Life Insurance – able to broke policy for HNW Malaysian clients. 
Reinsurance – may broke direct Malaysian risks.

vi) Captive Insurance

Insurance entity that acts as a risk management vehicle to insure its related parties’ risks.

SAMPLE USE CASE

A multinational group establishes a Labuan Captive Insurance Company to self-insure its global operations, reducing reliance on third-party insurers and optimizing premiums.

Alternatively, an international insurance group sets up a Labuan Reinsurance Company to manage regional risks efficiently while benefiting from Labuan’s tax incentives and regulatory flexibility.

Insurance

LABUAN INSURANCE COMPANY

BENEFITS

CATEGORIES OF LABUAN INSURANCE COMPANY

i) Direct Insurance – Life/General

ii) Reinsurance

iii) Insurance Manager

iv) Underwriting Manager

v) Insurance Broker

vi) Captive Insurance

SAMPLE USE CASE

Head Office

Marketing Office

For General Inquiries

For Marketing Inquiries

Operation Hour