A proposal to privatize the state-chartered workers’ compensation insurer, Pinnacol Assurance, would give Colorado a $340 million ownership stake while restructuring it as a subsidiary of a mutual insurance holding company owned by policyholders.
Pinnacol said this month its proposal would provide the state an estimated $13.6 million in annual dividends to support education and business development and make Pinnacol a tax-paying entity.
Gov. John Hickenlooper has chosen 19 people representing businesses, insurers, workers and foundations to review the proposal and offer guidance on legislation to restructure Pinnacol.
Pinnacol’s board is appointed by the governor, but it operates largely like a private insurer. It is required to cover employers that private insurers won’t.