Insurer appetite for faith-based organisations is currently at its strongest since Catholic Church Insurance (CCI) stopped writing, according to the broker leading Gallagher's new specialty practice for the segment. Demonstrating strong governance and risk management is now the main challenge.
Charlotte Jolly (pictured), practice leader, faith specialty at Gallagher in Australia, joined the broker in June 2026 with more than a decade of experience across insurance and faith organisations. She previously advised faith-based clients at CCI and at Marsh and so came to her new role from inside the market that had to absorb the withdrawal.
"The encouraging news is that insurer appetite for faith-based organisations is much stronger than it was a few years ago," Jolly said to Insurance Business.
What has replaced capacity as the main obstacle is documentation. "The biggest challenge today is ensuring organisations can provide the quality information insurers need to assess risk effectively," she said. "That includes asset and valuation information, governance documentation, safeguarding frameworks and evidence of strong risk management practices."
CCI was not a conventional competitor in the segment but the church's own insurer, owned by Catholic dioceses and religious organisations and covering parishes, schools, aged care and welfare bodies. It held more than 16,000 policies before entering run-off, a figure that had fallen to about 7,000 by October 2023 and it estimated $381.3 million in liabilities relating to abuse claims.
The board voluntarily placed the organisation into run-off in 2023 after it was unable to secure sufficient capital contributions from shareholders to continue operating in line with regulatory requirements. It ceased issuing new and renewal policies across all classes and offered policyholders with contracts expiring in the following weeks a short-term renewal to 30 June 2023 so they could source alternative arrangements. The Australian Prudential Regulation Authority (APRA) said the move was a commercial decision and that it would continue to supervise the insurer closely.
Jolly said the displacement reshaped what the broking job involves. "Following the exit of Catholic Church Insurance, many faith-based organisations entered a broader commercial insurance market and had to adapt to new underwriting requirements and expectations," she said.
That was met, in her account, by a corresponding shift on the underwriting side. "At the same time, insurers have developed a much deeper understanding of the sector and the strong governance, safeguarding and risk management frameworks that underpin these organisations," she said.
The practical consequence is that governance evidence functions as both an underwriting input and a compliance exercise. "Like any organisation, those that can clearly demonstrate strong governance and risk management are generally seeing positive engagement from insurers," Jolly said.
She pointed to a recent placement as an illustration of what market engagement can recover for an organisation that can document itself. Gallagher advised one of South-East Queensland's largest church insurance programs following a period of significant property losses, and Jolly said the broker secured improved coverage and premium reductions. She did not name the organisation or quantify the reduction.
"Most importantly, that outcome enabled more resources to be directed back into ministry, community services and the organisation's broader mission," she said.
Jolly also framed the lifecycle beyond placement as part of what insurers now assess. "Insurers value advisers who understand both the operational realities of faith-based organisations and the claims environments in which they operate," she said.
However, property is not the exposure that reshaped this market. The withdrawal of CCI removed one of the few markets prepared to write abuse and molestation cover for these organisations, leaving placement dependent on commercial appetite.
Gillian Davidson, senior commercial insurance partner at Sparke Helmore Lawyers, told Insurance Business in 2023 that sexual molestation cover was still available, though pricing and terms were contingent on an organisation's claims history, its exposure and the risk management it had in place.
Asked whether abuse and molestation cover forms part of what the Gallagher practice places, Jolly said it was a consideration within a wider risk profile. Gallagher also confirmed that it does seek to place it. "For faith-based organisations that support children or vulnerable people, it forms part of a broader risk profile that can also include property, liability, cyber, professional indemnity and other exposures," she said. "The landscape continues to evolve, which is why organisations need specialist advice that considers both current insurance requirements and broader governance and safeguarding responsibilities."
Gallagher has provided insurance, risk management and claims services to faith-based organisations globally for more than 50 years. Figures supplied by the broker put the global practice at more than 3,100 religious clients, 450 dedicated specialists, more than 4,000 schools, more than 25,000 parishes and ministries and more than 2,500 health and care facilities.
Alex Lumby, CEO of Gallagher in Australia, traced the practice to the aftermath of the 1958 fire at Our Lady of the Angels School in Chicago, after which the broker worked with the Archdiocese of Chicago on insurance, claims management and risk prevention.
"Charlotte will build on this strong foundation, bringing significant technical and local expertise, long-standing relationships, and a deep understanding of the communities these organisations serve," Lumby said.
The practice is also supported by two further appointments: Michelle Inglis as relationship manager and Pakize Ceker as national faith claims manager.
