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.

In addition, 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 meet the pre-requisite of three (3) years relevant experience or audited 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 otherwise.

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 A Labuan Insurance Broker

  1. Maintain minimum paid-up capital or working funds of MYR 300,000 or its equivalent in any foreign currency.
  2. Must be a member of the Labuan International Insurance Association.
  3. Must provide a letter of guarantee or undertaking from the parent company to Labuan FSA (if applicable).
  4. For operations: Either: establish an operational office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; OR appoint a licensed Labuan Insurance Manager
  5. Must appoint an auditor
  6. 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.
  7. The person in control, director and PO must be fit and proper persons and shall not be subjected to any adverse reports from any reliable sources.
  8. Must have professional indemnity insurance coverage of a minimum of MYR 2.5 million or its equivalent in any foreign currency.

On-Going Operational Requirements for A Insurance Broker License

  • Have a Principal Representative (insurance manager) to monitor company’s compliance in accordance with the Labuan Financial Services and Securities Act, 2010 and other related regulations.
  • Liaison with QX Trust (company secretary) to facilitate company’s compliance requirements with Labuan FSA's rules and regulations including other relevant authorities such as tax, auditor, etc.
  • Liaison with Labuan Financial Services Authority (Labuan FSA) on latest updates, reporting, rulings or approval requirements including licensing fees.
  • Record-keeping of the books of accounts and correspondences relating to the business of the Company.
  • Record-keeping of inward and outward correspondence records and forwarding documents as and when required.
  • Record-keeping of policy contracts, commission statements, statement of accounts, debit notes, credit notes and correspondences.
  • Record-keeping of all financial records and statutory records/documents for the auditor to audit the accounts.

Application Timeframe

  1. Approximately 30 to 60 days subject to further information and supporting documents required by Labuan FSA during the approval process
  2. Interviews / Meetings with the key personnel may be requested by the Labuan FSA to understand or clarify certain processes

STEPS to Apply for A Labuan Insurance Broking License

Process flow for Obtaining A Labuan Insurance Broking Licence | QX Trust - Offshore Labuan

Find out the Different Types of Labuan Insurance License available for your Insurance Business!

QX TRUST, your one-stop Trust Company in Labuan!

QX TRUST license application service level for Labuan Insurance Broking license include:
  • Consultation of client’s eligibility and application procedures
  • Feasibility study write-up based on client’s profile
  • Due Diligence, Profiling and Guidance on documents preparation
  • Construct exclusive Business Plan to meet client objectives
  • Preparation of Financial Forecast, KYC, Operation and AML/CFT Manuals, Client Agreement etc
  • Submission and supervision of application process until approval
  • Setup the membership with Labuan International Insurance Association
  • Act as liaison and key contact person for both client and Labuan FSA on all correspondences, meetings and/or interviews (if any)