PPS Mutual simplifies underwriting process to optimise member experience

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PPS Mutual has updated its medical and financial underwriting requirements to better meet the needs of members.

The changes have been designed to reduce the member application process by several weeks, minimising the time burden for Australia’s time poor professionals, while maintaining PPS Mutual’s commitment to responsible and sustainable underwriting by ensuring no additional risk has been added to the risk pool.

“As the only mutual insurer in Australia specifically for professionals, we have a strong understanding of the unique risk profile of this group and can be flexible and responsive to their specific needs. These recent changes form part of our ongoing commitment to continue to tailor our approach to serve the best interests of our members at all times,” said Marcello Bertasso, Head of Underwriting and Claims Management.

“Following an extensive study by PPS Mutual of all the quick check medicals, we found the rising costs of these assessments ultimately impacted the amount of profit returned to members,” he continued.

“Furthermore, a similar review of our underwriting book considering their financial risk profile found that no additional insights were added by the required questionnaires or third-party sign offs,” he said.

Key changes, applying to all existing and new policies, include the removal of the quick check medical requirement for prospective members aged 35 or under, who are requesting Income Protection up to a sum insured of $15,000 per month. The changes also remove the need for members of any age applying for Life Insurance of up to $20 million, Total and Permanent Disability insurance of up to $5 million, Trauma insurance of up to $2 million and Income Protection insurance of up to $30,000 per month, to undergo testing for Hepatitis B, Hepatitis C and HIV.

Additionally, when assessing a potential member’s financial situation, PPS Mutual has removed the need for those applying for Income Protection insurance to complete a full financial questionnaire and will now only request information that is relevant to the risk assessment. Third-party sign offs on financial questionnaires have also been removed for members wanting to insure for Income Protection.

By removing these requirements, PPS Mutual will lower operational costs to the business, and any resultant savings will ultimately flow to members via the unique Profit-Share arrangement.

“PPS Mutual’s products are designed to be tailored for the needs of professionals. Our decision to remove unnecessary underwriting elements won’t be the last change to our underwriting process,” Mr Bertasso said.

“We are guided by evidence-based principles, and will continue to seek feedback, analyse our processes and customise our underwriting methodology, to ease the process for our members, while maintaining a sustainable approach to our overall risk profile.”

PPS Mutual products are offered exclusively through PPS Mutual accredited financial advisers.

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