A Labuan life insurance business is defined as an insurance business connected with any policy by which payment of policy monies is insured on death or on the happening of any contingency dependent on the termination or continuation of human life and includes any incidental extension of cover and reinsurance of such business.

Licensing and Operational Requirements for A Labuan Life Insurance License

  1. Applicant must maintain a minimum paid-up capital or working funds with a bank in Labuan amounting to MYR 7.5 million or its equivalent in any foreign currency.
  2. Applicant must be a member of the Labuan International Insurance Association.
  3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
  4. Applicant for a licence to carry on a life insurance business in Labuan must:
    • establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business; or
    • appoint a licensed Labuan underwriting manager.
  5. Appointment of any person in control, director or principal officer (PO) of a Labuan life insurer must obtain prior approval from Labuan FSA. Notwithstanding, Labuan life insurers that are established as a branch are not required to obtain approval on the appointment of their directors.
  6. The person in control, director and PO of a Labuan life insurer must be fit and proper persons and shall not be subjected to any adverse reports from any reliable sources.

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

Annual Fee

Annual License FeeMYR 50,000
Marketing Office Fee
MYR 7,500

The Annual License and Marketing Office fees are payable upon approval valid up to 31st December. For subsequent years, fees are to be paid on or before 15th January of each calendar year.

PCC StructureLicense Fee
CoreMYR 30,000
Each CellMYR 10,000

If any of the insurance licensees use a protected cell company (PCC) structure, the annual license fee for the core structure is MYR 30,000 and each cell’s license fee is MYR 10,000.

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

We provide the following services to set up your Labuan Life Insurance license:

  • Profiling and preparation of client's profile for Labuan Life license
  • Recommending and appointment of the Labuan Insurance Manager / Underwriter
  • Submission to Labuan FSA and supervision of application process until approval
  • Once license is approved, incorporate the Labuan Company or Protected Cell Company
  • Operations Office setup, bank account for the capital injection and staff hiring to meet the license requirements
  • Setup the membership with Labuan International Insurance Association
  • Assist in annual compliance with Labuan FSA and Inland Revenue Board
  • Act as liaison and key contact person for both client and Labuan FSA on all correspondences, meetings and / or interviews (if any)