KUALA LUMPUR: Labuan International Business and Financial Centre (Labuan IBFC) expects to continue being a primary destination for captive insurance companies looking to spread its wings in the region.
Labuan IBFC director-general Danial Mah said there had been an increase in the numbers of captive insurance companies operating there.
“As of June 2018, we have already approved 47 captive insurance companies collectively. Sixty per cent of these firms are international firms. This shows that Labuan IBFC is capable of attracting foreign investments here,” he said at the Asian Captive Conference earlier today.
As of May this year, Labuan IBFC approved of six captive insurance companies, which is the highest within the region.
“As of May 2018, we have approved of six captive insurance companies and we believe that it is an upward trend going forward.”
Mah is confident that other captive insurance companies were still interested in investing in Malaysia despite the recent government change.
A captive is an insurance company created and wholly owned by one or more non-insurance companies to insure the risks of its owners.
Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured.