In recent times, Asia has been tipped as the next growth area
for the captive insurance world. While growth has been steady,
there is yet to be the 'boom' spoken about by various
commentators.
Of the 6,315 captives placed in various jurisdictions globally,
only 168 are domiciled in Asia, according to statistics compiled by
this publication. This is 20 more than the 148 recorded in 2016.
Singapore and Labuan IBFC lead the way in the region with 73 and 48
respectively, with Labuan IBFC leading incorporations in 2018.
Of the 345 new formations in 2018, Asia is home to 10,
significantly less than the 77 in Bermuda and the Caribbean and the
242 in North America.
Despite being home to a relatively small share of the global
market, a number of Asian multinationals own captives that are
domiciled in international jurisdictions. The potential for captive
insurance growth in a region that is experiencing rapid economic
expansion still remains.
