Leading global trade publication, Captive Review has recently shortlisted Labuan International Business and Financial Centre (Labuan IBFC) as ‘International Domicile’ for the European Captive Review Awards 2021. Labuan IBFC is the only jurisdiction from Asia to be shortlisted in this category, alongside other leading global domiciles; cementing Labuan IBFC’s growing recognition in Europe.
The European Captive Review Awards is a unique set of awards dedicated to captive insurance and risk management expertise, giving domiciles, service providers, captive owners and other industry stakeholders a platform to showcase the highest levels of excellence and innovation.
Farah Jaafar, CEO of Labuan IBFC Inc., said, “Our recognition in Europe is definitely growing, and this nomination is a great testament to that fact. Over the last few years, we have had significant interest and captive establishments from European entities, some of which have a presence in Asia. Our sound regulatory framework, proportionality in prudential requirements and our midshore offering and reputation makes for an ideal “home” for captive insurance vehicles.”
Farah added that Labuan IBFC is Asia and MENA’s fastest-growing risk and reinsurance wholesale intermediation market, boasting more than 220 license holders, and makes for not only a wide but deep marketplace for captives to thrive. Labuan IBFC is also the only jurisdiction in Asia that provides for the protected cell company (PCC) structure, with more than 10 PCCs licensed to date.
2020 was a boon year for Labuan captive business with 8 new captives formed, totalling 55 captives now licensed by the jurisdiction. This was the highest number of captives formed in both Asia and MENA in 2020. This growth has continued unabated, and in the first half of 2021, 8 new captives have already been approved.
Labuan IBFC’s captive insurance business continued its upward trajectory in 2020, with total gross premium increasing by 8.7% to USD497.5 million, out of which 65.4%of the premiums are from international markets. Labuan’s captive insurance business accounts for 31.2% of the total premiums underwritten in the jurisdiction.
It is worth noting that Labuan IBFC has won the Best Asian Domicile for three years running at the Asian Captive Review Awards. The jurisdiction was also recognised as Captive Insurance Jurisdiction of the Year at the China Offshore Awards in 2018 and 2019; as well as shortlisted for the non-EU jurisdiction category in the European & UK Captive Review Awards 2018.
Captives are self-insurance vehicles which are strategic risk management tools utilised by many corporations around the world. To date, there are approximately 7000 captive insurance companies set up globally in order to enjoy this benefit.
The European Captive Review Awards 2021 will be held in Luxembourg on 8 November. The ‘International Domicile’ category is awarded to the jurisdiction that demonstrates the highest standards of regulation, accessibility, efficiency and commitment in promoting the captive insurance business in the region.