"Driving Captive Transformation in Asia" White Paper by Captive Review indicates 50% of all new captive incorporations in Asia are from Labuan IBFC 81% of respondents cited regulatory environment as the most important factor in choosing a domicile 76% of respondents felt that cell captives are suitable for Asian risk management requirements Kuala Lumpur, 5 November 2019 - 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 Asia", which showed the jurisdiction having led by fifty percent in captive formations in Asia last year.
According to the white paper, the total number of captives in Asia grew by ten with Labuan IBFC leading the way with half of these incorporations domiciled in the jurisdiction. Singapore came in second with three formations compared to Labuan IBFC's five.
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.
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.
"As a midshore wholesale financial intermediation centre, focused on delivering solutions to the Asian marketplace, we are in good stead to continue our leadership in this space, especially as the requirements of economic substance demand Asian captive owners seek a well-regulated, cost efficient and facilitative jurisdiction," said Labuan IBFC CEO, Farah Jaafar-Crossby.
"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...