Farah Jaafar – WireUp

Labuan IBFC Clinches Global Accolade For Top International Captive Domicile 2021 At The European Awards

November 10, 2021 Published by TheFintechBuzz.com

Labuan International Business and Financial Centre (Labuan IBFC) has been honoured as the winner for International Captive Domicile of 2021 at the European Captive Review Awards held in Luxembourg by leading global trade publication, Captive Review.

Independent award judges in commenting on the win noted “Labuan IBFC is one of the fastest growing domiciles in the world”, adding that the domicile showed “healthy growth, an excellent team and a commitment to innovation in APAC.”

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, “This award evidences the growing recognition and acceptability of the Labuan self-insurance propositions in Europe owing to its well-regulated and extensive range of structures, proportionality in regulations as well as its wide and deep reinsurance marketplace for captives to thrive.”

“Labuan IBFC’s captive insurance business has continued its upward trajectory in 2021. As at 30 September 2021, 9 new captives were formed, this represents more incorporations than we enjoyed during the whole of 2020. We are now home to 64 captives and in terms of premiums, 70.2% originate from international markets – clearly indicating a coming of age and maturity of the market, making Labuan IBFC a global domicile of choice.”

She added that the availability of cell captives, master rent-a-captive (MRAC) and subsidiary rent-a-captive (SRAC) allows for the “democratisation” of self-insurance vehicles providing lower barriers to entry for small and medium sized companies. It has been a long-standing belief that self-insurance vehicles like captives were only accessible to large multinational corporations and businesses, however cell captives and the steeper insurance renewal rates as well as the inability to find cover for certain segments of risk has increased the understanding and interest in self-insurance.

This is the first time the jurisdiction has won the Top International Captive Domicile award at the European Captive Review Awards, having previously won the Best Asian Domicile for three years running at the Asian Captive Review Awards.

Labuan IBFC is Asia and MENA’s fastest-growing risk and reinsurance wholesale intermediation market, boasting more than 220 license holders. 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.

Industry practitioners, via the Labuan International Insurance Association (LIIA), have recently set up a globally represented captive subcommittee aimed at further strengthening the captive proposition via close cooperation and discourse with Labuan IBFC’s regulator, Labuan Financial Services Authority (Labuan FSA) to augment and improve the captive industry as a whole.

Captives are self-insurance vehicles which are strategic risk management tools utilised by many corporations around the world. To date, there are approximately 7,000 captive insurance companies set up globally in order to enjoy this benefit.

Labuan IBFC and LIIA will be jointly organising its fourth Asian Captive Conference themed “Democratisation of Self-Insurance: Benefitting from cell captives in a challenging insurance market” on 2 December. This virtual conference is open to all risk management professionals, business owners, leaders of global corporations, and corporate advisers.

Labuan IBFC to be Asia’s Leading Digital-Based Financial Gateway with Islamic Finance Capabilities

October 22, 2021 Published by TheFintechBuzz.com

Labuan International Business and Financial Centre (Labuan IBFC) is rapidly revolutionising its digital offerings, entrenching its commitment to become a facilitator of Asia’s digital revolution, a key driver of the centre’s success in recent years.

Labuan Financial Services Authority (Labuan FSA) – the jurisdiction’s regulator – provides an innovative licensing regime to support this evolving digital financial landscape. Allowing digital financial services (DFS) firms to operate within a live market environment, anchored on innovation, intermediation and financial inclusion.

“The DFS in Labuan IBFC is continually growing in recognition of the progressive approach that the centre has taken in embracing the digital revolution, by being as facilitative as possible to enable innovative digital business to take root in Labuan IBFC,” said Labuan FSA Director General, Nik Mohamed Din Nik Musa during his Welcome Address at the third Connecting Digital Ecosystems Asia (CoDE Asia 2021) today.

He added: “Labuan IBFC is envisioned to become a digital-based gateway with Islamic finance capabilities for all global investors and players as the future of Islamic finance looks ever promising. The digital transformation in Islamic finance positively contributes to the evolution and innovation of Islamic financial products and services in a rapid tone.”

“As we continue to strengthen Islamic finance footing in the region, our focus now is to realise the full potential of digital opportunities by offering an all-inclusive solution of a shariah based digital regime leveraging on Islamic finance and social-based finance instruments. This could further expand Islamic finance development across emerging markets while building connectivity with wider Islamic finance industry.”

“As digitisation for the financial sector evolves, regulatory bodies globally will be posed with the balancing act of determining appropriate ways of regulating these changes vis-a-vis promoting market breakthrough and innovations. Ensuring stability will remain of paramount importance as financial transactions become more seamless, intangible and borderless. Therefore, Labuan FSA is committed to adopting a facilitative approach by developing ‘fit-for-purpose’ requirements to cater for emerging business technologies,” said Nik Mohamed Din.

This year, Labuan FSA launched two key policy documents – the Guiding Principles on Business Continuity Management to enhance the Labuan financial institutions’ operational resilience; as well as a digital governance and cyber resilience framework which aims to protect DFS providers from cyber threats.

Farah Jaafar, CEO of Labuan IBFC Inc, said, “Being home to one of the fastest growing digital families in Asia, our ethos of constant engagement with industry coupled with innovation and facilitation, puts us in good stead to embrace the next digital evolution, governed by sound regulatory parameters. This curates a regulated digital ecosystem, providing synergy between wholesale financial intermediation and digitalisation allowing our licensees to operate in a facilitative borderless environment.”

As at September 2021, the number of DFS providers that have been approved to operate in the Labuan IBFC digital space has grown to 85 licensees, having licensed 25 intermediaries as of September 2021. The key licensees include 2 digital banks, 1 insurtech and 1 digital securities exchange, 16 payment systems providers, 18 credit token issuers and 33 money brokers (digital currency exchanges). Out of the total number of DFS providers in Labuan IBFC, the majority were licensed to provide digital currency trading platform, issuance of digital token and e-payment system or e-wallet.

Labuan IBFC’s debut as a digital friendly jurisdiction began in 2017 with just one licence and has since expanded with a wide range of digital businesses and players, from digital banking and insurtech to intermediaries such as robo-advisory, digital asset exchanges, crypto trading platforms, tokenisation licences and e-payment systems.

Having celebrated its 30th year of establishment in 2020, Labuan IBFC is now home to more than 5,000 active entities which include 70 banks, 232 insurance and insurance-related entities, 65 trust companies and other business sectors, with an ecosystem creating a robust environment promoting the growth of digital business.

The 3^rd edition (virtual) of Connecting Digital Ecosystems Asia 2021 (CoDE Asia 2021) themed “Future Forward: Next Gen Digital Ecosystems” was attended by more than 400 regional delegates and featured a line-up of industry players and subject matter experts, discussing the current and emerging developments in the digital financial industry.

In conjunction with the conference, a joint white paper entitled ‘Curating a Regulated Digital Ecosystem’ was launched. The paper produced with Deloitte, examines the challenges faced by regulators in an ever-evolving digital landscape, and how jurisdictions can support and facilitate a well-balanced regulatory and business conducive environment.

Labuan IBFC Shortlisted for ‘International Captive Domicile 2021’ for Second Consecutive Year

October 14, 2021 Published by TheFintechBuzz.com

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.

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.

Labuan IBFC awarded Best Asian Captive Domicile 2021

August 5, 2021 Published by TheFintechBuzz.com

Labuan International Business and Financial Centre (Labuan IBFC), Malaysia has won the best Asian Domicile award for the third year running at the APAC Captive Review Awards 2021. Labuan IBFC’s growth in captive insurance continues to outpace regional competitors, namely Singapore and Hong Kong cementing its leadership in this segment of reinsurance. Both Singapore and Hong Kong were also shortlisted in the same category as Labuan IBFC. The win was announced at a virtual awards ceremony held on 3 August by Captive Review, a leading global trade journal publication.

These global awards, recognises domiciles, providers of captive insurance services and owners who have demonstrated the highest levels of excellence over the past year. Specifically, the domicile category is awarded to the domicile embodying the highest standards of regulation, accessibility, efficiency, and commitment developing its captive insurance business in the region.

Captives are self-insurance strategic risk management vehicles licensed as reinsurance companies allowing these corporate entities direct access to the reinsurance market, providing it the ability to reduce the cost of risk coverage whilst simultaneously facilitating a holistic risk management strategy for the entire organisation. There are approximately more than 7000 captive insurance companies set up globally.

“We are honoured to have won this award for the third year running and it’s a testament to the partnership Labuan IBFC has forged with our intermediaries regionally and globally. Our continued commitment towards developing a robust risk management and reinsurance ‘tool-box’ for Asia is entrenched in our future roadmap for the jurisdiction as it’s a key element within our role as a wholesale financial and risk intermediation centre for the region,” said Farah Jaafar, Chief Executive Officer of Labuan IBFC Inc.

Labuan IBFC is home to more than 220 insurance and risk management licensees, with its industry association, Labuan International Insurance Association being the single largest industry group in the jurisdiction. Reinsurance and risk management is one of the fastest growing segments of Labuan IBFC’s financial services eco-system and is set to grow even more as the need for efficient risk transfer mechanisms in Asia grows.

As the fastest growing captive insurance centre in Asia and MENA, 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 foreign business. Labuan’s captive insurance business also accounts for 31.2% of the total premiums underwritten in the jurisdiction.

2020 was a boon year for Labuan captive business with 8 new captives formed, totaling 55 captives now licensed by the jurisdiction. This was the highest number of captives formed in both Asia and MENA in 2020. 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.

Labuan based intermediaries such as Principal Re Limited also received a win of their own for Captive Consultant of the Year, with Brighton Management, Labuan Insurance Manager Services, AFR Asia Pacific Limited and Nicholas Actuarial Solutions being shortlisted in their respective award categories.

Tag: Farah Jaafar

Labuan IBFC Clinches Global Accolade For Top International Captive Domicile 2021 At The European Awards

Labuan IBFC to be Asia’s Leading Digital-Based Financial Gateway with Islamic Finance Capabilities

Labuan IBFC Shortlisted for ‘International Captive Domicile 2021’ for Second Consecutive Year

Labuan IBFC awarded Best Asian Captive Domicile 2021

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