Labuan International Business and Financial Centre (Labuan IBFC) is an economic zone and international financial hub established by the Malaysian government in 1990, located on the island of Labuan off the coast of Borneo. It provides a platform for international business and financial services, offering tax efficiency, confidentiality, and Shariah-compliant solutions alongside conventional products. Labuan IBFC is promoted as Asia’s premier captive insurance hub due to its regulatory environment and professional ecosystem.

The Labuan Financial Services Authority (Labuan FSA) is the statutory body responsible for the development and administration of Labuan IBFC. Established on 15 February 1996 under the Labuan Financial Services Authority Act 1996, it operates under Malaysia’s Ministry of Finance.

For the insurance industry, Labuan FSA licenses and regulates insurers, reinsurers, brokers, captives, and managers, ensuring compliance with Labuan laws and international standards. It develops policies to ensure orderly conduct of business and financial services. The growth of Asia’s (re)insurance markets has positioned Labuan IBFC as a jurisdiction of choice, attracting over 200 insurers and intermediaries from Southeast Asia, the Far East, the Americas, the Middle East, and Africa – from Life and Non-Life Insurance and Reinsurance Brokers, Insurance and Reinsurance Companies, including Captives, to related Management and Accounting Services

The Labuan International Insurance Association (LIIA) is established within the Labuan IBFC to serve as the industry’s representative body for insurance and reinsurance players. The LIIA membership is a requirement for all insurance and reinsurance related entities in Labuan. Its purpose can be explained in three dimensions: 

1. Representation & Advocacy 
   LIIA is the collective voice of all insurance-related entities licensed in Labuan IBFC (insurers, reinsurers, captives, brokers, managers, and service providers). Membership is mandatory, which gives LIIA legitimacy to speak on behalf of the entire industry. It advocates with regulators (Labuan FSA) and authorities (such as IRB) on tax, compliance, and policy matters to ensure Labuan remains competitive as an international insurance hub. 

2. Industry Development 
   LIIA promotes the growth of Labuan’s insurance sector by encouraging innovation (e.g., captives, specialty risks, Shariah-compliant insurance). It organizes forums, working groups, and dialogues to strengthen Labuan’s ecosystem and align with global best practices. It helps position Labuan IBFC as a regional centre for risk management, complementing Malaysia’s domestic insurance market. 

3. Knowledge & Networking
   Provides a platform for collaboration among insurers, reinsurers, brokers, and service providers. Shares updates on regulatory changes, market trends, and international benchmarks. It builds professional networks that connect Labuan IBFC with ASEAN and global insurance hubs.