RAM Ratings and Labuan IBFC Inc. hosted an event to explore self-insurance structures, emphasizing the benefits of Labuan captives for risk management, and introduced RAM’s bespoke LECA® service for financial transparency.
17 May 2024 – RAM Rating Services Berhad (RAM Ratings), Malaysia’s premier rating agency, and Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc.), the official marketing agency for Labuan International Business and Financial Centre (Labuan IBFC), recently organized a significant event focusing on self-insurance structures and solutions in Labuan IBFC, Asia’s leading international financial hub. Titled “Setting Up a Labuan Captive for Self-Insurance,” the event connected Malaysian corporate delegates with representatives of the jurisdiction to explore the benefits of captive incorporation in Labuan IBFC.
In his opening address, Datuk Iskandar Mohd Nuli, Executive Chairman and CEO of Labuan IBFC Inc., emphasized the potential of Labuan captives as an effective and cost-efficient risk management tool. “Captive insurance is well-positioned to cater to the evolving operating landscape by providing customized insurance policies, with direct access to the global wholesale reinsurance market to address non-conventional risks,” Datuk Iskandar elaborated. The Labuan captive market, originating with Malaysian corporates, recorded an all-time high premium volume of USD624.6 million in total gross premiums in 2023. Currently, the jurisdiction hosts over 69 captives, reinforcing its status as a leading captive hub in Asia.
A panel discussion featured experts from event sponsors Brighton Management Limited and Etiqa Offshore Insurance (L) Ltd, along with representatives from the Labuan International Insurance Association (LIIA) and captive owners. The panel provided valuable insights on captive suitability, selection roadmap, and potential challenges. RAM Ratings highlighted its bespoke service, Labuan Entity Corporate Assessment (LECA®), launched in 2021 for Labuan IBFC licensees. LECA® offers ratings for financial institutions, captives, and service providers, enhancing transparency and providing independent evaluations of financial soundness and performance.
“This event provided an excellent platform to exchange ideas, share knowledge, and strengthen connections between RAM, Labuan IBFC, and the captive community stakeholders. Our ratings, known for analytical rigor and trusted insights, aim to support the long-term growth and governance of Labuan IBFC,” said Julie Ng, CEO of RAM Ratings.
The event attracted over 120 delegates. For more information on Labuan IBFC captive solutions, visit the official website. Click here for FAQs on LECA®.
