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Governor Advocates for Privatization of Pinnacol Assurance | News


Governor Jared Polis is proposing to privatize Pinnacol Assurance, a quasi-state workers’ compensation insurance company, as part of his efforts to address a $700 million shortfall in the state budget. The move would allow Pinnacol to offer its insurance products beyond Colorado’s borders and generate a significant financial benefit for the state. Pinnacol, which insures about 50,000 companies and one million workers in the state, is facing challenges due to state restrictions that prevent it from operating in 25 states. The privatization could provide the company with access to capital markets, diversification of risks, and increase competitiveness. However, the proposal has faced opposition from labor unions, who view Pinnacol as a social safety net for workers. On the contrary, business groups support the idea of privatization but stress the need for a fair valuation that reflects the contributions made by employers over the years. Lawmakers are considering the proposal, with the Joint Budget Committee playing a key role in the decision-making process. The potential privatization of Pinnacol has been a long-debated issue, with previous attempts failing to gain traction. The current proposal, if approved, could have far-reaching implications for both the state’s budget and the workers’ compensation insurance landscape in Colorado.

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