REINSURANCE

Reinsurance business means a business whereby the reinsurer assumes a part of the liability under an original contract of insurance of another insurer or reinsurer.

Licensing and Operational Requirement

  • Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan; amounting to RM10.0 million equivalents 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 reinsurance 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 underwriting manager
  • Appointment of any person in control, director, or Principal Officer (PO) of a Labuan reinsurer must obtain prior approval from The Authority
  • The person in control, director and PO of a Labuan reinsurer 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 103 of the Labuan Financial Services and Securities Act 2010.