Catholic Church Insurance ceases issuing renewals, new policies
Catholic Church Insurance (CCI) has announced today that it will cease issuing new or renewal policies and will voluntarily place the organisation into “run off” after it was unable to secure sufficient additional capital.
“The CCI Board and management deeply regret that it has been necessary to make this decision and would like to assure all staff, policyholders and suppliers that it has sufficient assets to meet its commitments as they currently stand,” Chairman Joan Fitzpatrick said today.
The insurer says that “despite every effort” it has been unable to secure sufficient capital contributions from shareholders to enable its business to continue operations in line with regulatory requirements.
CCI remains an Australian Prudential Regulation Authority (APRA) authorised insurer and will continue to manage claims from existing policyholders using its capital reserves.
The organisation’s website says the group has served the Catholic community since 1911 and is one of the oldest insurance companies in Australia.
Policyholders that have contracts due to expire in coming weeks will be offered a short-term renewal up to June 30 to allow them time to source alternate insurance arrangements.
The Australian Catholic Bishops Conference, following the CCI announcement, restated its commitment to “responding with justice and compassion to victims and survivors of abuse in Catholic settings”.
“The bishops and leaders of religious institutes, who reiterate today our apology for the abuse that has occurred in the Church, will continue to work towards justice and healing for the crimes and sins that took place, where that is possible, including through the payment of compensation,” it said.
The conference says it is supporting ministries currently insured with CCI to ensure continuity of insurance cover, and it is confident that will be achieved.
APRA said this morning that it noted CCI’s decision to enter run-off.
“APRA’s mandate is to supervise financial institutions so the community can have confidence in those institutions and that they are able to meet their prudential obligations. APRA will continue to closely supervise CCI,” it said.