UMC Launches Insurance Company
An insurance company was launched by the UMC's financial board earlier this week to save money. Although the ministry is taking on some risk, it is more beneficial in the long-run. The captive insurance company will be owned by many insured parties who share in the risk.
¡°We¡¯re currently paying millions of dollars ... to a for-profit organization¡± for insurance, said Craig Parrish, chairman of the committee that formed United Methodist Property and Casualty Trust (PACT).
¡°Millions of dollars in equity can be put back into ministry,¡± Parrish said, ¡°depending on our actual experience of loss.¡±
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PACT will be marketed to annual conferences and their local churches. PACT is available to general agencies of the denomination.
Coverage is to include property, general liability (casualty), automobile liability, sexual misconduct, pastoral professional liability, employee benefits liability, bonding, worker¡¯s compensation, directors and officers¡¯ liability, and employment practices liability. Health insurance is not included.
Stating, ¡°No religious captive has ever failed,¡± he pointed out the successes of many other organizations.
Following approval of the formation of the captive insurance company, GCFA executives will seek to incorporate the company in Washington.
Claire Irene Howard, who was general counsel for GCFA, was appointed chief executive officer of PACT. She was also made GCFA deputy general secretary for strategic initiatives. James R. Allen, who is part of the legal counsel for GCFA was appointed general counsel (UMNS).
The GCFA will act as trustee for the whole church, accepting the responsibility for all properties formerly owned by the General Council on Ministries, which was discontinued by the 2004 General Conference. The GCFA executive committee can act on behalf of the agency and trustees regarding GCOM property.
