Catholic Church Insurance (CCI) says it is following a planned approach to run-off and a first tranche of staff have been made redundant, with full entitlements paid. 

The insurer announced on May 30 that it would cease issuing new or renewal policies and would voluntarily place the organisation into run-off after it was unable to secure additional capital. 

The organisation remains an Australian Prudential Regulation Authority (APRA) authorised insurer and will continue to manage claims from existing policyholders using its capital reserves. 

“CCI is following our planned approach to run-off, with our first tranche of staff having been made redundant with their full entitlements paid, and an ongoing plan in place to ensure adequate staff and capabilities remain in the organisation to ensure management of claims in the run-off process,” CEO Roberto Scenna told insuranceNEWS.com.au. 

The insurer, which has employed around 300 people and had $346 million in gross written premium last financial year, had been seeking additional capital following high levels of historical abuse claims, referred to as professional standards claims. 

“The significant increase in abuse claims arises from several factors including but not limited to legal changes/reform, a more numerous plaintiff law firm presence dealing with these matters, and a community environment where, thankfully, survivors now feel more able to tell their stories, receive apologies, be supported in their healing journey, and receive compensation for their injuries suffered,” Mr Scenna said. 

The organisation’s website says the group has served the Catholic community since 1911 and CCI is one of the oldest insurance companies in Australia.  

The board explored many options to enable CCI to keep operating, all of which sought to improve the capital position, but they ultimately proved to be unavailable to allow ongoing operations to continue, Mr Scenna says.