March 28, 2024
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Captives remain uncharted territory

The captive insurance industry is significantly under-penetrated despite lower risk burden, said Labuan IBFC Inc. chief executive officer Danial Mah Abdullah.

“The Asian market for captive is relatively unexplored and the potential for growth is immense. The penetration level is low at the moment with only 2.3 percent out of the total number of 6,939 captives established worldwide (according to Business Insurance 2016) and we believe the Asian captive market will continue to grow at a steady pace,’ Abdullah said.

Asian corporations, he added, are viewing captives as a viable alternative of risk management tool and the number who appreciates this concept is growing.

“While many companies will continue to depend on traditional insurance, those with the know-how will explore greater business opportunities and risk management options through captives, especially when commercial premium rates make standard insurance untenable,” he said during a media briefing.

 

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