The government has taken steps to encourage insurance companies to provide offshore insurance services in Labuan's International Offshore Financial Centre. Although reaction in the banking market to the possibility of setting-up offshore had been good, only six insurance companies had moved to the centre.
The government will now allow insurance broking institutions to carry-out offshore broking activities with insurance companies that are not registered under the Offshore Insurance Act 1990. In addition, unlicensed money brokers will be allowed to operate in the financial centre, enabling them to provide assistance to the offshore banks, especially in the area of fund management and the management of the deficit in Labuan between deposits and loans.
© 2021 Euromoney Institutional Investor PLC. For help please see our FAQs.