Colorado’s state-affiliated workers’ compensation insurance provider — Pinnacol Assurance — is currently standing at a crossroads. For over a century, the company has proudly served Colorado’s workers and employers, adapted to changing times and ensured their protection and peace of mind – including for jobs and industries that weren’t even contemplated when Pinnacol was created in 1915.
About 20 years ago, the legislature significantly modernized Pinnacol, which was crucial for meeting the needs of workers and our customers in a competitive workers’ compensation market. And it worked. Today, operating as a mutual insurance company owned by its members, we boast the highest satisfaction scores in our history — from both workers and employers. But the landscape of work has shifted dramatically, and the laws governing Pinnacol haven’t kept pace. Smartphones and accessible wireless internet could not have even been contemplated during Pinnacol’s establishment.
Changes in technology and most profoundly the lasting impact of the pandemic on remote and multistate hiring has meant Pinnacol cannot seamlessly serve multistate employers due to current legislation. Colorado maintains the second-highest remote workforce in the nation, and for the first time in history, most Colorado employers have employees working in multiple states, this shift has both market and public policy implications. While Pinnacol was
created to be accessible to Colorado’s workers and employers, most do not have access to Pinnacol today. This isn’t a theoretical problem; it’s a reality impacting our ability to fulfill our mission.
This declining access to Pinnacol is a challenge that Colorado’s elected leaders must address. Pinnacol is the top-performing carrier in the state and invests far more in Colorado than its national competitors, including former state-affiliated workers’ comp carriers that are competing to cover workers in Colorado. Not only do these competitors pick and choose who they cover, but the industry on average is denying claims at roughly twice the rate as Pinnacol. It’s a striking irony that the top-performing, most-invested carrier in the state is not as accessible to most Colorado employers.
A declining membership due to Pinnacol’s multistate coverage barriers will lead to higher premiums and reduced services for all members and their workers, including for those that rely on us the most. Our members expect better and deserve to keep their affordable premiums and best-in-class service for workers. As stewards of Pinnacol, our leaders are obligated to be proactive in meeting those expectations.
It is not a prudent strategy to sit on our hands and simply wish for a solution. That would not be fair to the businesses or their employees, because we’ve seen how that would play out in time with other areas of social safety nets.
The governor’s proposal to disaffiliate Pinnacol from the state has invited a discussion to explore and evaluate opportunities to better meet the needs of our workforce and members in a modern and post-pandemic economy.
Our priorities are steadfast: financial stewardship, pricing stability, support for workers and industry-leading care when workers need us the most. These are all non-negotiable alongside an unwavering commitment to Colorado. Pinnacol is a civic leader investing in our communities, promoting workplace safety and supporting a thriving region. We’re proud of our award-winning culture and top workplace as well as our ongoing dedication to providing industry-leading service.
Pinnacol is more than an insurer; we embody Colorado’s spirit. We are Colorado. We recognize the importance of getting it right to ensure the best possible outcome for Colorado’s workers, businesses, and economy. The future of Pinnacol and its ability to serve Colorado depends on it.
Akasha Absher is on the investment committee and is the chair of the board at Pinnacol Assurance
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