INSURANCE BROKER

Labuan insurance broker means a person who is licensed to arrange Labuan insurance business on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance. In addition following the enactment of new legislation, Labuan insurance brokers may carry on financial planning activities. Labuan insurance broker company is prohibited from dealing with residents (except for high net-worth individuals, reinsurance and others as defined by The Authority from time to time) and broke for direct Malaysian risks.

Licensing and Operational Requirement

  • Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan amounting to RM300,000 equivalent in any foreign currency
  • Applicant must be a member of Labuan International Insurance Association
  • Applicant must provide a Letter of guarantee or undertaking from the parent company to The Authority
  • Applicant for licence to carry on insurance broking business in Labuan must
    • Have an operational management office in Labuan managed by a management team that has an adequate knowledge and expertise in insurance business
    • Appoint a licensed Labuan insurance manager
  • Appointment of any person in control, director, or Principal Officer (PO) of a Labuan insurance broker must obtain prior approval from The Authority
  • The person in control, director and PO of a Labuan insurance broker must be of fit and proper persons and shall not be subject of any adverse report from any reliable sources

Governing Legislation

The insurance activities are governed by Section 104 of the Labuan Financial Services and Securities Act 2010.