LABUAN: Leading global trade publication Captive Review has recently shortlisted the Labuan International Business and Financial Centre (Labuan IBFC) as ‘International Domicile of the Year’ for the European Captive Review Awards 2020.
Labuan IBFC is the only jurisdiction from Asia that offers this sophisticated insurance structure and to be shortlisted in this category. The other shortlisted jurisdictions were American-based.
Labuan IBFC Inc chief executive officer Farah Jaafar-Crossby said Labuan IBFC won the Best Asian Domicile for two years in a row at the Asian Captive Review Awards in 2018 and 2019; recognised as Captive Insurance Jurisdiction of the Year at the China Offshore Awards in 2018 and 2019; as well as being shortlisted for the non-EU jurisdiction category in the European & UK Captive Review Awards 2018.
“We are extremely pleased to have been shortlisted in the European market as this signifies a coming of age for Labuan IBFC which has already carved its name as the leading captive jurisdiction in Asia,” she said in a statement Wednesday.
The European Captive Review Awards is a unique set of awards dedicated to captive insurance and risk management expertise across Europe, giving service providers, captive owners and other industry stakeholders a platform to showcase excellence and innovation, highlighting the continued sophistication of the market.
Captives are self-insurance vehicles which are strategic risk management tools utilised by many corporations around the world, and to date, there are about 7,000 captive insurance companies set up globally to enjoy this benefit.
As at mid-2020, the jurisdiction has recorded more captives being set up in the centre in the first half of 2020 compared with the entire 2019.
Meanwhile, Farah said the Labuan captive business continued its growth momentum with premiums increasing by 14.2 per cent to US$457.5 million, where 64.5 per cent of its total premiums originated from international markets including in Europe.
“Labuan IBFC has significantly broadened its geographical spread of business beyond its traditional preponderance of Malaysian-owned captives and is attracting business internationally,” she said.
Farah said Labuan IBFC has continued to attract EU-based companies looking to manage their Asian risk profile via the setting up of a Labuan captive operation.
“A key standout player is one of the largest commodity trading houses in the world that set up its captive to cater to its Pan-Asian operations in 2018.
“There are also other captives that are headquartered in Europe and have set up operations in Labuan IBFC via their Asian-based sub-holding companies, to cater to their Asian risk exposure,” she said.
She said as one of Asia’s fastest growing reinsurance hubs, Labuan IBFC is an ideal location for captive formations, being home to more than 200 insurance and risk management licensees, creating a robust eco system for captive owners to operate in.
With the ongoing impact of the Covid-19 pandemic, the European Captive Review Awards 2020 will be held virtually on Nov 26.
The ‘International Domicile of the Year’ 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.
