Retakaful

Labuan retakaful business means a business in compliance with Shariah Principles whereby the Labuan retakaful operator assumes a part of the liability under an original contract of takaful of another takaful operator or retakaful operator.

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 retakaful 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 takaful underwriting manager
  • Appointment of any person in control, director, or Principal Officer (PO) of a Labuan retakaful operator must obtain prior approval from The Authority
  • The person in control, director and PO of a Labuan retakaful operator 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 78 of the Labuan Financial Services and Securities Act 2010.