The competition regulator has approved a Uniting Church national insurance purchasing program that the religious organisation says can reduce premiums and deliver better outcomes.

The Australian Competition and Consumer Commission has granted a six-year authorisation after finding the program is likely to bring public benefits, while detriments will be “minimal, if any”.

Individual Uniting Church regional councils – known as synods – and the national body have in the past separately bought insurance through several major brokers and insurers, with cover extending across churches, schools, health services, aged care and social services.

Under the national insurance program one broker could source cover across areas including property, motor fleet, public products liability, professional indemnity, crime, employment practices liability, accident and travel.

The church received ACCC authorisation for the program in 2019, but full adoption was delayed by the covid pandemic and synod restructuring. The latest application states “no [national program] broker has yet been formally appointed”.

A spokesperson told insuranceNEWS.com.au the ACCC decision, delivered yesterday, “continues to support the national assembly and synods to collectively negotiate, procure and maintain insurance and insurance-related products and services”.

The Uniting Church in Australia National Assembly (UCANA) estimates premium savings of 15%-20% and flags increased leverage. The larger scale may open markets that were previously unavailable or not competitively priced and facilitate negotiations on broader cover or bespoke terms and conditions.

“As UCANA and the relevant synods are not-for-profit organisations, any benefit resulting from lower or more competitive premiums, and other transactions cost savings, will be passed on to its mission work and to the broader community, including through the services it delivers via Uniting Care,” the assembly said.

Brokers for the synods have included JLT, Aon, Arthur J Gallagher and Willis Towers Watson, and cover has been placed with insurers such as Vero, Zurich, Allianz, CGU, Chubb and some overseas groups.

The church says it represents a small share of general insurance acquired across Australia and the ACCC previously identified that where proposed collective bargaining arrangements involve a small part of a market, or a target much larger than the bargaining group, there is little risk of anti-competitive detriment.

The ACCC received no submissions from interested parties such as brokers, insurers, government associations and Uniting Church entities.

The decision is available here.

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