KUALA LUMPUR, Malaysia, Nov.\u00a05, 2019 \/PRNewswire\/ — Labuan International Business and Financial Centre’s (Labuan IBFC) position as a market leader in captive insurance is reinforced by the findings of a white paper by Captive Review titled “Driving Captive Transformation in\u00a0Asia”, which showed the jurisdiction having led by fifty percent in captive formations in\u00a0Asia\u00a0last year.<\/p>\n
According to the white paper, the total number of captives in\u00a0Asia\u00a0grew by ten with Labuan IBFC leading the way with half of these incorporations domiciled in the jurisdiction.\u00a0Singapore\u00a0came in second with three formations compared to Labuan IBFC’s five.<\/p>\n
The paper also revealed 81% of respondents cited regulatory environment as the most important factor in choosing a domicile, which puts the midshore jurisdiction of Labuan IBFC in good stead. Well-supported by a robust, modern and internationally-recognised legal framework enforced by its regulator, Labuan Financial Services Authority, the jurisdiction strikes an ideal balance between regulatory requirements, compliance with international best standards and practices.<\/p>\n
Labuan IBFC is home to close to 200 insurance and insurance related licensed entities, providing an ideal ecosystem for captive formation as well as management, while the strong banking and corporate services industry provides for a seamless one stop jurisdiction for captive insurance entities.<\/p>\n
“As a midshore wholesale financial intermediation centre, focused on delivering solutions to the Asian marketplace, Labuan IBFC is in good stead to continue being the captive leader in\u00a0Asia, especially as the requirements of economic substance demand Asian captive owners seek a well-regulated, cost efficient and facilitative jurisdiction,” said Labuan IBFC Inc CEO,\u00a0Farah Jaafar-Crossby.<\/p>\n
“In fact as of mid-2019, Labuan IBFC already registered six captive formations, compared to the five registered for the whole of 2018, reinforcing the study’s findings, which not only indicated an overall growth in understanding the role of captives but the jurisdiction’s ability to continue to attract these risk management vehicles,” Jaafar-Crossby added.<\/p>\n
Fraser Irving, editor of Captive Review, said “Often tipped as the next area of opportunity for captive insurance,\u00a0Asia\u00a0has shown steady long-term growth over a number of years. While there is yet to be the ‘boom’ spoken about by various commentators, the industry is becoming increasingly sophisticated in the region and is definitely here to stay.”<\/p>\n
The steady overall year-on-year upward trend in Asian captive adoption depicts enhanced maturity and sophistication, demonstrated in the findings indicating 52% of respondents having heard of protected cell companies (PCCs), while 76% of respondents felt that cell captives are suitable for Asian risk management requirements.<\/p>\n
“The fact that Labuan IBFC is still the only jurisdiction in\u00a0Asia\u00a0with the Protected Cell Company structure is definitely encouraging. In fact, in 2019, we have seen a significant pipeline interest in PCCs which we attribute to enhanced awareness of its benefits as well as overall cost sensitivities arising from the global need for substance creation, whilst in a well-regulated jurisdiction,” Jaafar-Crossby noted.<\/p>\n
The white paper entitled “Driving Captive Transformation in\u00a0Asia”, based on a survey and insights from global captive practitioners carried out in 2018, was shared with regional risk management practitioners at the PARIMA Conference 2019, held in\u00a0Kuala Lumpur\u00a0and is downloadable via\u00a0www.labuanibfc.com<\/a>.<\/p>\n Labuan IBFC was also awarded the best Asian Domicile category at the recent Asia Captive Review Awards 2019. The Awards recognise and reward service providers, captive owners, jurisdictions and risk management professionals for their exceptional achievements in captive insurance. It is a part of a global series of awards which are also held in\u00a0Europe\u00a0and America.<\/p>\n","protected":false},"excerpt":{"rendered":" KUALA LUMPUR, Malaysia, Nov.\u00a05, 2019 \/PRNewswire\/ — Labuan International Business and Financial Centre’s (Labuan IBFC) position as a market leader in captive insurance is reinforced by the findings of a white paper by Captive Review titled “Driving Captive Transformation in\u00a0Asia”, which showed the jurisdiction having led by fifty percent in captive formations in\u00a0Asia\u00a0last year. According […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-2801","post","type-post","status-publish","format-standard","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=2801"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2801\/revisions"}],"predecessor-version":[{"id":3860,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2801\/revisions\/3860"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=2801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=2801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=2801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}