Wednesday, January 20, 2010
Colorado given its budget shortfall is now looking at privatizing Pinnacol Assurance. I've written about Pinnacol before but this is a new twist. Originally Pinnacol was set up by the state to make it easier for employers to obtain workers comp coverage. This was especially true of employers in higher risk areas such as construction or truck driving. The state believed it could set it up to keep costs down and for the most part that is what happened. Many private insurers will naturally want to avoid some fields or have much higher rates. Pinnacol did seem to help and more then 50% of all workers comp insurance is now through Pinnacol. Time moves on and perhaps privatizing it can mean help with the state budget and let Pinnacol be truly independent which it has said it wants. I do wonder how this will all play out but the future of Pinnacol makes for an interesting story.