Insurance Insights

August 22-28, 2016

Always rising

By Allen Kerr

It is always a good thing when I have the opportunity to tell you about the work the professional men and women at the Arkansas Insurance Department are doing on behalf of hardworking Arkansas consumers and the insurance industry.

Earlier this week, it was my honor to present my second annual report of the Arkansas Insurance Department (AID) covering the year 2015 – my first year serving as Commissioner. When I first took office, I relied upon my 30 years of experience in the insurance industry as a producer and small business owner to instill a new philosophy at AID where responsibility and common sense took the primary role in the execution of our consumer protection and regulatory responsibilities while also encouraging the growth of business.

I am proud to report that 2015 showed our new philosophy is succeeding.

We ended last year with 115,137 licensed agents and producers – a 32 percent increase over 2014. Coupled with a 27 percent annual increase in licensed business entities, AID has demonstrated that Arkansas in indeed open for business for the insurance industry. Furthermore, I am also very proud of the fact that total written premium in Arkansas for 2015 totaled $12.87 billion – an increase over the previous year of $645.6 million.

While we welcome new business, we are not ignoring the important work AID does on behalf of consumers. In 2015, our Consumer Services Division received 2,455 complaints and closed 2,290 cases. CSD assists insurance consumers with complaints and inquiries regarding insurance companies, producers, and adjusters. It also recovers, on behalf of Arkansas consumers, money in excess of amounts initially offered by insurance companies. Last year, we recovered $3,843,969 for Arkansans – $40,000 more than in 2014.

In the last year, AID has also increased outreach to Senior Arkansans through our very important Senior Health Insurance Information Program (SHIIP).

Our Legal Division also fights on behalf of Arkansas consumers, making recoveries and ordering restitution against producers and companies that are found to have violated the Insurance Code. In 2015, a total of $136,211 was captured on behalf of Arkansans, a 190 percent increase over the year before.

In 2015, the Arkansas Insurance Department collected $264.5 million in receipts, of which nearly all – as you know – is turned over to General Revenue. This is more than the $260.6 million collected in 2014.

I invite you to read our Annual Report by visiting http://insurance.arkansas.gov/index_htm_files/2015Annual.pdf. I hope that, upon review of the information contained in it, you will agree the Arkansas Insurance Department is encouraging new business in our state while honoring our charge to advocate on behalf of the hardworking Arkansas taxpayers who buy their products. I salute our professional men and women who are doing an excellent job on behalf of their fellow Arkansans.

It is my pleasure to continue to serve you as your Insurance Commissioner. For more information on the Arkansas Insurance Department, please visit http://insurance.arkansas.gov, follow us on Twitter at http://twitter.com/ARInsuranceDept and Facebook at http://www.facebook.com/ArkansasInsuranceDepartment.  

Allen Kerr was appointed Arkansas Insurance Commissioner on Jan. 13, 2016, by Governor Asa Hutchinson.