Perr&Knight Successfully Guides Arkansas Legislature in Passage of Landmark House Bill 1821

State-Owned Captive to Bring Efficiency and Savings to K-12 Public Schools, Colleges, and State-Owned Buildings

LITTLE ROCK, Ark., April 29, 2025 /PRNewswire/ -- Industry-leading actuarial consultancy and insurance operations solutions provider Perr&Knight today announced that the Arkansas Legislature has taken a transformative step by passing House Bill (HB) 1821, establishing a state-owned captive insurance company that will consolidate property insurance for K-12 public schools, colleges, universities, and state-owned buildings.

Industry experts Kyle M. Hales and Charles Lenz, leaders in Perr&Knight's innovative Risk Strategies & Solutions practice area, played a pivotal role in steering lawmakers toward this landmark initiative. Emerging from a year-long study examining the rise in insurance premiums, HB 1821 unifies three existing programs into one efficient entity. Hales' and Lenz's strategic guidance has been instrumental in securing bipartisan support for this innovative risk management solution.

Working with the Executive Subcommittee of the Arkansas Bureau of Legislative Research, Perr&Knight effectively demonstrated that a captive model could cut through the inefficiencies of the commercial insurance market by eliminating redundant overhead, commissions, and additional charges. Early projections indicate that the new structure could save the state millions in the first year alone, redirecting significant funds back into educational initiatives.

"I'm very excited to announce that the Arkansas House of Representatives passed HB 1821, establishing a state-owned captive to cover their school systems and state-owned buildings," said Kyle M. Hales. "We're not only helping the State ensure significant cost efficiencies and redirecting savings back into education, but we're also paving the way for a more sustainable commercial property marketplace overall."  

Operations under the new captive are slated to begin by July 2025, with a phased transition of existing policies and liabilities. Going forward, Perr&Knight and the Risk Strategies & Solutions team will stay involved in an advisory capacity, supervising the initiative and continuing to provide recommendations directly to the Executive Subcommittee.

For further information or media inquiries, please contact:

Louis Landon
Manager, Marketing & Communications
Perr&Knight
Email: [email protected]
Website: www.perrknight.com

About Perr&Knight:
For over 30 years, Perr&Knight has provided exemplary insurance consulting and software solutions to the property & casualty and life, accident & health industries. Services include actuarial consulting, risk strategies & solutions, applied AI consulting, product development, insurance policy and forms consulting, regulatory compliance, compliance and operational assessments/training, state filings, licensing, technology consulting, statistical reporting, data services, predictive analytics, and bureau monitoring & maintenance. Software includes StateFilings.com, the leading cloud-based state filings management solution. With offices nationwide and more than 150 insurance professionals, including 30+ credentialed actuaries, Perr&Knight is among the largest independent actuarial and insurance consulting firms in the United States.

SOURCE Perr&Knight