Catholic Church Insurance (CCI) may operate in run-off for several years, following a decision not to accept new business, as it continues to manage claims from existing policyholders using its capital reserves. 

The insurer said last week 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, and would cease issuing new or renewal policies. 

“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. 

The annual report for last financial year shows CCI gross written premium of $346 million, while it has employed around 300 people. 

“We deeply regret the impact this will have on many of them,” GM Underwriting and Product Tim Farren told insuranceNEWS.com.au.  

“CCI has a planned approach to considering the resource requirements and expertise required for the run-off organisation. CCI will engage with individual staff members over the coming weeks to confirm their own employment status as part of the orderly run-off process.” 

Mr Farren said last week that roles required were still being considered, and it’s unclear how long CCI will continue to operate in run-off, but it’s likely to be for several years as all claims are managed to a conclusion. 

The organisation’s website says the group has served the Catholic community since 1911, making it one of the oldest insurance companies in Australia.  

The requirement for a further capital injection arose from the continued significant number of new claims arising from historic abuse matters. 

The Australian Prudential Regulation Authority (APRA) has 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,” it says. “APRA will continue to closely supervise CCI.”