A legislative committee in Arkansas has approved preliminary rate proposals for a new state-owned property insurance captive set to launch this summer.
The decision follows nearly two years of study into rising premiums for public schools and state-supported institutions.
Under the plan, a state captive insurance programme will provide property cover for public schools, higher education institutions and state-owned buildings across Arkansas.
The initiative was formally authorised this year through Act 560 and Act 779, which mandate the creation and operation of the captive.
The Arkansas Department of Transformation and Shared Services will oversee the programme, with participation required for all school districts and state agencies that receive capital appropriations.
The captive must be established by 1 July 2025, with administrative functions transferred from the Arkansas Board of Finance by the end of the year. The move is part of a broader effort to pool risk, stabilise premiums and reduce reliance on the commercial insurance market.
Supporters say the captive will enable more transparent, predictable pricing for public entities facing volatile insurance conditions.
Further updates on implementation are expected later this summer as the state finalises the captive’s operational framework.
