The impact of the Industrial Revolution 4.0 on the global insurance industry is profound, introducing intensified competition through innovative and automated underwriting approaches brought by new entrants. Established players face the imperative of adapting to this evolving landscape and explore different strategies to unlock new opportunities and deliver value efficiently.
Navigating the shifting underwriting trends involves considerations such as cost efficiency, international accessibility, and adaptability. Labuan emerges as a prime solution, offering a streamlined process for establishing an underwriting firm in a short timeframe. Situated at the heart of the Asia Pacific, Labuan provides convenient access from both Asia and Australasia. What sets Labuan apart is its advantageous tax structure, levying a 3% tax on profits, coupled with comparatively lower maintenance fees compared to other jurisdictions.
Entrusting us with backend tasks such as secretarial work, audit, and payroll allows you to concentrate on seizing business prospects. In Labuan, we strategically position you not only to navigate industry shifts but also to flourish amidst the changing landscape of opportunities. Elevate your business with efficiency, leaving the operational intricacies to us while you chart a course for success.
What does a Labuan Underwriting Manager do?
A Labuan Underwriting Manager is a person who is licensed to offer underwriting services and expertise, as well as the administration of businesses (what a Labuan insurance manager does), to one or more Labuan (re)insurers and captives.
As Labuan underwriting managers engage with captives, they are also referred to as “captive managers”. They provide their underwriting services to owners of the captives who may not have the needed technical know-how to run a captive insurance business. Thus, underwriting managers can be able to bridge this gap which allows captives to undertake their businesses professionally.
Why Choose Labuan
Strategic location to tap into the Asia Pacific market
Shared time zone with major Asian cities for seamless interaction
Excellent infrastructure and regulations within the Labuan IBFC
OECD whitelist jurisdiction status
Recognised by prominent exchanges for entity listing (such as Hong Kong, Singapore, Malaysia, Australia, and Dubai Exchanges)
100% foreign ownership with a minimum requirement of 1 shareholder and 2 directors
Low corporate tax rate of 3%
Absence of withholding tax, stamp duty, GST, import duty, sales or service tax, capital gains tax, inheritance tax
Void of tax on dividends to shareholders
Void of tax on director fees for foreign directors
Licensing & Operational Requirements of a Labuan Underwriting Manager
- Underwriter must be a member of the Labuan International Insurance Association.
- Maintain a minimum paid-up capital or working funds of MYR 300,000 or its equivalent in any foreign currency.
- Establish an operational office in Labuan with a minimum number of 4 full-time employees and a minimum annual operating expenditure of MYR 100,000.
- May set up a marketing office or co-located office anywhere in Malaysia.
- Must provide a letter of guarantee or undertaking from the parent company to Labuan FSA (if applicable).
- Appoint a person in control, director or principal officer (PO) who must obtain prior approval from Labuan FSA. However, Labuan underwriting managers established as branches are not required to obtain approval on the appointment of their directors.
- Ensure that the person in control, director and PO must be fit and proper and shall not be subject to any adverse report from any reliable sources.
- Appoint an approved Labuan auditor to carry out an annual audit which must be submitted within 6 months after the closure of each financial year.
- Comply with annual corporate tax filing to Labuan Inland Revenue Board and Labuan FSA.
- Consultation on eligibility and procedural guidance tailored to your profile.
- Profiling, due diligence and guidance on documentation preparation.
- Preparation of Business Plan, Financial Forecast and Operation Manuals.
- Submission and supervision of the application process until approval.
- Acting as your liaison and contact point with LFSA, arranging for interviews (if any).
- Tracking the license approval and handling all queries from LFSA.
- Advisory services on the appropriate company structure post-approval.
- Assistance in setting up onshore and offshore bank accounts.
- Assistance in establishing operational and marketing or co-located offices.
- Staff provision and office space rental.
- Internal audit and compliance advisory.
About FAA Advisory Limited
Comprising a team of seasoned professionals well-versed in Labuan's business landscape, FAA Advisory Limited extends a comprehensive suite of services covering corporate services, private wealth management, and licensing compliance administration, all tailored to meet the unique needs of our clients.
At FAA Advisory Limited, our expertise lies in delivering Labuan insights that facilitate business expansion, simplifying intricate processes, and offering valuable information to guide you through various facets of your journey.
Choose FAA Advisory as your trusted partner in navigating the dynamic business landscape of Asia. With our commitment, we are your gateway to success in Labuan and beyond.
Email: advisory@finarkasia.com | Phone number: +6010-931 6678