Labuan Retakaful

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 Labuan FSA
• 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; OR
• 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 Labuan FSA.
• 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 Islamic Financial Services and Securities Act 2010.

Fees	Amount
Annual Fee	RM30,000

General Takaful Business    

Licensing and Operational Requirement

• Applicant must maintain a minimum paid up capital or working fund with a bank in Labuan amounting to RM7.5 million equivalents in any foreign currency.
• Applicant must be a member of Labuan International Retakaful Association.
• Applicant must provide a Letter of guarantee or undertaking from the parent company to Labuan FSA
• Applicant for licence to carry on general takaful business in Labuan must-
  
  • Have an operational management office in Labuan managed by a management team that has an adequate knowledge and expertise in retakaful business; OR
  • ii.  Appoint a licensed Labuan takaful underwriting manager.

• Appointment of any person in control, director, or Principal Officer (PO) of a Labuan general takaful operator must obtain prior approval from Labuan FSA.
• The person in control, director and PO of a Labuan general takaful operator must be of fit and proper persons and shall not be subject of any adverse report from any reliable sources.

Governing Legislation

The retakaful activities are governed by Section 78 of the Labuan Islamic Financial Services and Securities Act 2010.

Fees	Amount
Annual Fee	RM30,000

Family Takaful Business

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 Labuan FSA
• 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; OR
  • 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 Labuan FSA.
• 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 Islamic Financial Services and Securities Act 2010.

Fees	Amount
Annual Fee	RM30,000

Takaful and Retakaful

As at 31 December 2010, there were seven full-fledged retakaful companies and nine retakaful windows conducting business in Labuan IBFC, comprising operators from the Asia Pacific, Middle East and Europe. Growth continued to be positive, as reflected in the increase of 27% in gross contributions amounting to USD297.3 million as at 31 December 2010 (2009: USD234.1 million). The gross contributions were mainly from non-resident business, a testament to the global reach of operators in Labuan IBFC and their capacity to compete for international business.