CATHOLIC churches and schools are likely to be hit with significant hikes in public liability insurance premiums next year.
Catholic Church Insurance (CCI) general manager Peter Rush said the increases were due to a number of factors, some of which were outside its control.
He said while CCI had sought to remove itself from the mainstream industry and therefore from market forces, it was only able to do so to a limited extent.
‘Our reliance on the reinsurance market will always ensure that we are influenced to some extent at least by general developments and trends in the broad industry.’
He said while CCI had not withdrawn insurance cover for any of its clients, it would need to impose significant premium increases in the areas of public liability.
Mr Rush said while some insurers had ceased to cover schools or medical liability CCI had maintained cover to all of its clients.
He said factors such as poor investment returns, significant increases in reinsurance and the inability to buy reinsurance at previous levels had contributed to rises for Australian insurers in general.
He also threw cold water on client expectations that proposed governmental changes would result in lower premiums.
‘In the long term the proposals may lead to reductions but there are other pressures that might preclude that.
As for reducing premiums, I think it is more likely that in the short term it will lead to a capping of premiums.
Mr Rush said that along with premium increases, CCI would not be able to provide rebates to investors and policy holders from January next year.
