Increased costs of cover for Australia.

RMS can confirm that property cover for the 2021/22 renewal is bound – good news for the resilience and sustainability of the Adventist Church organisation for another year. For Australia, however, this renewal is characterised by higher premium prices, with insurers decreasing capacity, coverage and sub-limits.


Insurers have experienced significant losses from natural, catastrophic perils in our region over the last few years. Additionally, they have faced poor investment returns, increased costs of reinsurance and claims inflation.

As a result, the RMS team has experienced their most challenging Australian property renewal negotiations to date, one that has brought significantly higher premium prices, with insurers hardening terms and conditions, changing natural peril sub-limits and declining the option of premium relief for higher deductibles or excesses.

In view of the sharp rise in costs and reduced coverage for Australian entities, Risk Management Service in consultation with the Division Services Ltd Board has chosen to subsidise this year’s rate increase to Adventist entities in Australia. This significant subsidy from RMS for the 1 July 2021 – 30 June 2022 AU property insurance renewal will offset some of the cost increase your Adventist site would have otherwise experienced.

Jonathan Hale, RMS Manager, affirmed that the decision to subsidise the rate increase was needed to lessen the financial impact to Adventist sites already struggling with the challenges of the last 16 months.

“Our concern was that mission and ministry could potentially be hampered by this unprecedented rate increase,” explained Mr Hale.

“The RMS team and the Board felt strongly that sharing this cost increase would ensure the Church could continue the good work it does throughout the region,” he said.

RMS hopes that rates will return to more tolerable levels over the next 12 months, however it is recommended that leaders, treasurers and CFOs set their budgets for another potential increase for the 2022/23 property insurance renewal.

RMS is forever dedicated to Adventist Mission and achieving the best possible outcome for our Church organisations. As always, if you have any questions about your Adventist site’s upcoming renewal notice please do not hesitate to contact us. We are always ready to help.