Arkansas Moves Forward with State-Owned Captive to Insure Public Property

Arkansas’s Board of Finance has approved forming a state-owned captive insurer to cover property risks for public schools, higher education institutions, and state agencies. The initiative follows the 2025 State Captive Insurance Program Act, which mandates public entities’ participation and establishes a dedicated trust fund. Oversight of the captive falls under the Department of Shared Administrative Services, with requirements for board-reviewed actuarial plans and annual reporting. The captive, funded initially with $136 million and expected to generate around $102 million in premiums annually, aims to stabilize costs and leverage reinsurance markets. The plan phases in deductibles—for schools based on asset size and agencies at $250,000—and transitions existing public risk funds into the new captive by late 2026.

Source: Captive.com

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