By Akasha Absher

While we share the passion for protecting Colorado’s workers expressed in a recent op-ed from the perspective of trial attorneys and union representatives, the piece paints a picture of Pinnacol Assurance that is more rooted in 1915 than our 21st-century reality (“Colorado’s workers can’t afford a privatized Pinnacol | OPINION,” March 17). Their characterization of Pinnacol’s evolution misses a fundamental truth: Pinnacol’s success is not due to its status as a “political subdivision.” It is because we operate as a member-owned mutual insurance company with an unwavering duty to the people we serve.

Following a full separation from the state, we would continue to operate under the same member-owned structure — the very framework that enabled Pinnacol to become a national industry and civic leader, and the state’s top-rated workers’ compensation insurer by workers.

For more than two decades, Pinnacol has operated as a mutual insurer, owned by its members and operating independently of the state. In fact, the state walked away from its financial risk in Pinnacol nearly a quarter-century ago. The state has no oversight of Pinnacol’s operational processes, and we have no outside shareholders. No “profits” leave the system to line the pockets of Wall Street; instead, the equity belongs to Pinnacol’s members.

Every dollar we generate stays in the system to provide rate stability and safety services for Colorado’s small businesses, industry-leading care for injured workers, and scholarships for their children.

Today, independent national benchmarks rank Pinnacol among the top 50 property and casualty insurers in the nation for performance — a distinction held by fewer than 2% of carriers nationwide. We achieved that status through a fiduciary duty to our members — a duty filled by employers and their workers, not the government. Our members want their employees well taken care of because they know a healthy workforce is a productive one. As a member-owned company, a full separation from the state doesn’t change the accountability that we have as a steward for those we serve.

The suggestion that our evolution is driven by a “profit motive” or “private equity” is a fundamental misunderstanding of our structure. We are not seeking to be sold, nor are we welcoming to outside investors. We stand in firm opposition to such scenarios, as they would lead to higher costs and declining service for our members and their employees.

Our goal is simple: to adapt to a 21st century workforce that no longer stops at the Colorado border.

Opponents claim a full separation is a “gamble.” In reality, the gamble is staying stagnant. According to the U.S. Census Bureau, Colorado has the highest remote-work rate of any state in the country. Our state’s workforce is dispersing across state lines at historic rates and most employers in Colorado now have employees in multiple states. Our outdated structure prevents us from seamlessly protecting workers across state lines. Because Pinnacol is a political subdivision, it cannot obtain licenses to operate in all other states. Instead, we must rely on “clunky” and expensive third-party arrangements to follow Colorado’s employers — more than 95% of Colorado employers in this scenario choose a carrier other than Pinnacol

Our own home-grown, top-performing carrier is being forced out of the market, leaving a majority of Colorado businesses and their workers without access to the protection they deserve. In any other industry, a market leader’s inability to meet customer needs would be seen as a failure of policy.

We aren’t looking to “exit” our responsibility to Colorado; we are looking to live into it. However, we are not willing to pursue modernization at any cost. Our first and final loyalty is to our members and the workers we protect. Removing an excessive amount of member-generated funds to solve short-term state budget challenges would be a breach of our mission. If a deal compromises our capital strength or rate stability, we will not support it. Our financial stewardship was built by Colorado employers, and we owe it to them to act in their best interest.

When we prioritize members over political winds, Colorado’s workers and employers win.

Akasha Absher is chair of the Pinnacol Board of Directors.