The captive market in Asia has a leading role to play in propelling the shift in the risk landscape and ensuring stability in a hard market. This was the conclusion of the Asian Captive Conference 2022, co-organised by Labuan IBFC and the Labuan International Insurance Association (LIIA).
The conference theme was ‘Embracing change and accelerating growth: the way forward for self-insurance’. The executive chairman cum CEO of Labuan IBFC, Datuk Iskandar Mohd Nuli, reiterated Labuan IBFC’s position as the fastest-growing captive domicile in the region, with the jurisdiction holding 63 captives as at the end of 2021.
And in the keynote address, Yang Berusaha Encik Nik Mohamed Din Nik Musa, director general, Labuan Financial Services Authority (FSA), said a key factor in the sustained growth of Labuan IBFC is the well-regulated business environment, which provides confidence to investors. “In charting the continued growth and building on the position of strength, Labuan FSA will continue to strengthen the competitiveness of Labuan captive business under the Labuan IBFC’s five-year Strategic Roadmap launched in June 2022.”
The conference heard that captives have a growing opportunity in a post-Covid landscape that is focused on increased supervision and enhanced risk management frameworks. It also heard about the impact of the Organisation for Economic and Cooperation Development’s BEPS 2.0 framework and how captives will continue to adhere to international standards and best practices.
The conference closed with a discussion on the position of captives in environmental, sustainability and governance (ESG) schemes. Panellists explained how captives can be used to address company-wide ESG concerns, and discussed the unique features of captives that enable them to easily assume responsibility for all organisational risks, including those that are sustainability-related.