Colorado’s governor has once again proposed converting Pinnacol Assurance to modernize our ability to serve the market, while providing the state with funding applied to the 2026-27 budget. As this public discussion continues, we wanted to provide you with Pinnacol’s most recent perspective on the proposal.
The following historical background and context inform our team's approach.
Operating as a member- and policyholder-owned mutual insurance carrier, Pinnacol has become one of the highest-performing property and casualty insurers and civic leaders in the country. However, our structure must adapt to the evolving economy. The need for modernization is increasingly critical as the state’s workforce expands across borders at an unprecedented rate. Today, most Colorado businesses have workers in multiple states and the state has some of the highest remote worker rates in the nation.
Pinnacol agrees that a full separation from the state is the most seamless way to modernize our structure and meet the needs of our members. We would remain a mutual company, owned by our members with no outside shareholders.
While some others refer to this separation as “privatization,” we do not see it that way. Pinnacol is not seeking private equity, outside investment, or to be sold outright to another company in its conversion. In fact, we oppose those scenarios because they would lead to higher costs and declining service for our members and Colorado’s workforce.
The governor’s proposal presents an opportunity to modernize our business and strengthen access to Pinnacol. However, we caution that removing an excessive amount from member/policyholder-generated funds would increase costs for Colorado businesses and be detrimental to our state and regional economies.
Pinnacol has adapted, evolved, and championed the changing landscape of our workforce for over a century. The last modernization occurred more than two decades ago, when the state mostly separated Pinnacol and directed us to operate as an independent mutual insurance company. At that time, the state transferred the liability of Pinnacol’s assets and an adjusted surplus of $80.8 million (this represents $147.7 million in today’s dollars, according to the federal Consumer Price Index) to its members.
Transitioning Pinnacol to its members was the right move, as it strengthened our ability to navigate a competitive marketplace. We’re ready to champion this new chapter of evolution,but it must be done the right way.
As we navigate discussions about our future, our commitment is non-negotiable: maintaining the financial strength and capital needed to support workers and ensure rate stability for the tens of thousands of businesses we serve.
We’re eager to meet with you soon to share more on Pinnacol’s perspective and ask for your partnership as we navigate opportunities to better support our state’s businesses and workforce.
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