There are concerns it will become harder for people with claims of abuse against Catholic institutions to receive payments decided by civil courts.
Catholic Church Insurance (CCI), an insurance company owned by the church that insures Catholic entities, went in to run-off in May, meaning it was not issuing new insurance policies.
The insurer has about 7,000 policies in force. Before entering run-off, it had more than 16,000. Most will end by June next year.
In a letter to policy holders, CCI director Joan Fitzpatrick said:
“The past few years in CCI’s history have been continuously challenged by unprecedented demands on capital reserves, in large part due to high volumes of professional standards [abuse] claims.”
CCI estimated it had $381.3 million in liabilities relating to abuse claims.
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