Under the Labuan Financial Services & Securities Act 2010, entities who are licensed to carry out insurance and insurance-related business have the option of appointing an underwriting or insurance manager in Labuan as an alternative option to establishing its own management office in Labuan.
An underwriting manager is a licensed entity which uses its specialized skills and knowledge in a particular class of insurance or reinsurance to act on behalf of one or more insurer or reinsurer. In general, an underwriting manager represents reinsurers in territories or regions, where they are not represented. Reinsurer’s utilize the expertise of an underwriting manager to solicit, underwrite and manage the specified class of business. Usually, underwriting managers are given authority to accept risks up to agreed limits. Risks are accepted for and on behalf of the reinsurers. The underwriting manager does not carry any of the risk.
An Insurance Manager is a licensed entity that provides management or administration services related to the Labuan insurers / reinsurers but do not provide underwriting management services.