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DO I NEED SPECIALISED STAFF FOR A CAPTIVE COMPANY?
Yes, you have to establish a management team with adequate knowledge and expertise to manage a captive. Alternatively, you can appoint a licenced underwriting manager.
HOW DO I SETUP A CAPTIVE?
Please check the section under Captive Insurance/Guidelines. The first step is to incorporate a company which a licenced Labuan Trust Company can help you with.
WHAT IS CAPTIVE INSURANCE?
A captive insurance business is a business where the insured is a related company or associate corporation of the offshore insurer. Captive insurance has been recognised as an important vehicle for ensuring sound and professional risk management by large corporations, including the transfer of risks through the captive insurance company. One of the special features of the Labuan Financial Services and Securities Act 2010 is the ability for a captive insurance company to service selected third party clients, subject to the approval of Labuan FSA, without losing its character as a captive insurer.
WHAT IS A RENT-A-CAPTIVE?
A rent-a-captive is a captive insurance company that can be utilised by a number of users, or so called renters without voting control of the captive. While none of the users will own the rent-a-captive, each will enjoy the commercial benefits of a captive. The captive facility "rents" out its capital, surplus, and license to the policyholder and usually provides administrative services, reinsurance and/or an admitted fronting company. A rent-a-captive can be structured as a protected cell, which is legal segregation of the accounts of each program from the liabilities of every other program and those of the rent-a-captive itself.
WHAT KIND OF COMPANIES CAN SET UP CAPTIVE INSURANCE?
You can establish captives in all classes of business in Labuan, for companies of all sizes. In particular, these companies would benefit most from captive insurance set ups:
- Marine vessels and cargo
- Aircraft of all sizes
- Petrochemical risks
- Mining and mineral exploration
- Contingent and professional liability insurance
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