Guide to Set Up Labuan Insurance Broker
A Labuan insurance broker is defined as 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.
Additionally, a Labuan insurance broker may perform financial planning activities. A Labuan insurance broker is prohibited from dealing with residents (except for high-net-worth individuals, reinsurance and others as defined by Labuan FSA from time to time) and broker for direct Malaysian risks. The applicant should have at least 3 years of relevant experience or audited annual accounts of the company.
The Approved Activities:
Direct insurance business: May broke direct insurance business (except direct Malaysian risks) with any insurance company irrespective of whether they are licensed under Labuan Financial Services and Securities Act 2010 (LFSSA) or not.
Life insurance business: May broke life insurance policy for high net worth Malaysians with life insurance companies licensed under LFSSA.
Reinsurance business: May broke reinsurance of direct Malaysian risks transacted in Malaysian ringgit.
Licensing and Operational Requirements for Labuan Insurance Broker:
- Maintain minimum paid-up capital or working funds of RM300,000 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:
- Either: a. establish an operational office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; OR b. appoint a licensed Labuan insurance manager
- Must appoint an auditor
- Appointment of any person in control, director or principal officer (PO) must obtain prior approval from Labuan FSA. However, Labuan insurance brokers 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.
- Must have professional indemnity insurance coverage of a minimum of RM2.5 million or its equivalent in any foreign currency.
Annual Fee for Labuan Insurance Broker:
Initial license fee is payable to Authority upon approval of license. License fee payable to Authority is RM 20,000 in addition to annual maintenance fees of a Labuan company.
CP Trust Labuan Insurance Broker License Application Services:
Our one-stop license application service level for Labuan Insurance Broker 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)
Feel free to email us at email@example.com when you decide to start up your Labuan insurance broker business for more guidance.