Over 120 Delegates Attend Labuan Conference on Self-Insurance

More than 120 delegates attended a 1-day conference on self-insurance structures and solutions in Labuan's international business and financial center on May 15.

RAM Rating Services, a Malaysian rating agency, and Labuan International Business and Finance Centre (IBFC), the marketing agency for Labuan, jointly hosted the event.

Titled Setting Up a Labuan Captive for Self-Insurance, the event brought together delegates from corporates in Malaysia and representatives of the jurisdiction to discuss the advantages of captive insurance company incorporation in Labuan.

Datuk Iskandar Mohd Nuli, executive chairman and CEO of Labuan IBFC, and Julie Ng, CEO of RAM Ratings, joined panelists at the event.

In his welcome address, Mr. Mohd Nuli highlighted the potential of Labuan captives as an effective and cost-effective risk management tool.

"Captive insurance is well-positioned to cater to the changing operating landscape by providing tailor-made insurance policies while having direct access to the global wholesale reinsurance market to meet nonconventional risks," he said.

Labuan IBFC's captive market began with Malaysian-based corporates, with the market registering US $624.6 million in total gross premiums in 2023, an all-time high. Today, the jurisdiction hosts more than 69 captives, underscoring its position as a leading captive hub in the Asian region.

A panel discussion convened experts from event sponsors Brighton Management and Etiqa Offshore Insurance, as well as spokespersons from the Labuan International Insurance Association and captive owners.

Perspectives on captive suitability and a road map for selecting captive options and addressing potential challenges were discussed. RAM Ratings launched its bespoke service (Labuan Entity Corporate Assessment) for Labuan IBFC licensees in 2021, which provides ratings for financial institutions, captive insurance companies and service providers. Stakeholders benefit from the transparency and independent opinion of financial soundness and performance of companies assessed by RAM Ratings.

"This event has been an opportunity to exchange ideas, share knowledge, and foster deeper connections between RAM, Labuan IBFC, and the stakeholders of the captive community in Labuan," said Ms. Ng. "We hope to contribute to the long-term growth and governance of Labuan IBFC via our ratings. We look forward to continuing our support of Labuan IBFC via our service offerings."

Established in 1990 by Malaysia's central bank, RAM Ratings is Malaysia's leading credit rating agency. Registered by Securities Commission Malaysia, RAM Ratings has rated over US $450 billion of bonds issued by more than 500 entities based in Malaysia and other countries.

Labuan IBFC, through its internationally recognised, business-friendly legal framework, offers global investors and businesses the benefits of being in a well-regulated jurisdiction while providing for fiscal neutrality and certainty in addition to being a first-class location for substance creation.