Guide to Set Up Labuan General Insurance Business
A Labuan general insurance business is defined as an insurance business which is not life insurance but includes accident, medical, surgical and hospital expenses insurance. General insurance is also known as non-life insurance.
Licensing and Operational Requirements for Labuan General Insurance:
- Maintain minimum paid-up capital or working funds of RM7.5 million or its equivalent in any foreign currency.
- Must be a member of the Labuan International Insurance Association.
- Must provide a letter of guarantee or undertaking from the parent company to Labuan FSA (if applicable)
- For operations:
- establish an operational office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; OR
- appoint a licensed Labuan underwriting manager.
- Appointment of any person in control, director or principal officer (PO) must obtain prior approval from Labuan FSA. However, Labuan general insurers that are established as a branch are not required to obtain approval on the appointment of their directors.
- Person in control, director and PO must be fit and proper persons and shall not be subject of any adverse report from any reliable sources.
- May set up a marketing office in Kuala Lumpur to facilitate meetings and business dealing with clients. Number of staff in the marketing office must balance the number of staff in the Management Office in Labuan (not applicable to captive and insurance broker).
- Comply to yearly corporate tax filing to Labuan Inland Revenue Board and Labuan FSA.
Annual Fee for Labuan General Insurance:
Labuan General Insurance license fee is payable to Authority upon approval of license. The License fee payable to Authority is RM50,000 in addition to annual maintenance fees of a Labuan company. If any of the insurance licensees uses a protected cell company (PCC) structure, the annual license fee for the core structure is RM30,000 and each cell’s license fee is RM10,000.
CP TRUST one-stop license application service level for Labuan General Insurance License include as follows:
* Consultation of your eligibility and procedures based on your profile
* Profiling, due diligence and guidance documentation preparation
* Preparation of Business Plan, Financial Forecast and Operation Manuals
* Submission and supervision of applicant process approval
* Act as your liaison and contact point with Labuan FSA for all correspondence and arrange interview (if any)
Call us at +603-2161 0354 for an appointment to find out which type of insurance license it you if you are unsure. Feel free to email us today if you interested to find out more about Labuan General Insurance License application on your eligibility. We “simplify the complexities of your investment in Labuan”