Allen Kerr, Arkansas insurance commissioner, has approved the creation of the State’s first special purpose captive insurance company, Diamond Risk Insurance, a wholly‐owned subsidiary of Baptist Health.
Diamond Risk Insurance will transact business under the Arkansas insurance code regulating captive insurance companies, meaning it will be regulated by the Arkansas Insurance Department, unlike companies choosing to be regulated by the federal Department of Labor by offering coverage to employees under the Employee Retirement Income Security Act (ERISA) of 1974.
“I am proud to announce Arkansas Insurance Department’s (AID) approval of Diamond Risk Insurance, and congratulate Baptist Health on choosing to be the first entity in Arkansas to create its own captive insurance company,” said Kerr.
“This is another example of how our state is open for new business, and a move that will blaze a trail for more Arkansas companies to offer insurance coverage to their employees.
“By creating its own captive insurance subsidiary, Baptist Health reduces its dependence on the year‐to‐year volatility of purchasing insurance on the commercial market.”
Arkansas Insurance Department, Diamond Risk Insurance, Baptist Health, US