Catholic Church Insurance (CCI) says it will be engaging with staff on next steps as an orderly run-off process is undertaken following the decision to not provide new insurance policies or renewals.

The insurer says no staff have been made immediately redundant following yesterday’s announcement. The organisation employs 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 says roles required are 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.

CCI said yesterday 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. The organisation had previously reported in 2021 that it had received an injection of capital from 18 existing shareholders.

“The requirement for further capital injection arose from the continued significant number of new claims arising from historic professional standards matters,” Mr Farren said.

The annual report for last financial year shows CCI gross written premium of $346 million, while the group reported a profit of $867,000 compared to a loss of $192.3 million a year earlier.

The report also highlighted challenges arising for the insurer from abuse claims, which it refers to as professional standards claims. 

“We cannot underestimate the significant task of responding to professional standards claims. These claims continue to flow,” Chairman Joan Fitzpatrick said in the report.

CCI yesterday provided assurances that it has sufficient assets to meet its commitments as they currently stand, and it remains an Australian Prudential Regulation Authority authorised insurer.

CCI insures Catholic community risks across parishes, welfare organisations, aged care and schools and colleges, as well as some other values-aligned faith-based organisations.

The organisation’s website says the group has served the Catholic community since 1911 and is one of the oldest insurance companies in Australia. CCI’s earliest insurance claim was lodged for £20 in 1912 by the Bishop of Maitland in NSW for fire damage.