Michael Pillemer

PPS Mutual, Australia’s only retail life insurance mutual exclusively serving qualified professionals, this week marks its tenth anniversary – and with it, what a decade of putting Members before shareholders actually looks like: nine consecutive Profit-Shares, $76 million in claims paid, and lapse rates a third of the industry average.^[1]

What began as a niche, purpose-built offering for Australian professionals – doctors, lawyers, engineers, dentists and others – entering a retail life insurance market long dominated by large institutional and shareholder-owned insurers, has grown into a recognised, multi-award-winning business with 17,336 Members^[2] and $131 million^[2] in-force premiums. Every one of those Members has a stake in the business that protects them and, every year since inception, they have shared in its profits.

A Profit-Share that has grown sixfold

The hallmark of PPS Mutual’s mutual model is its annual Profit-Share – a feature unique in the Australian retail life insurance market. From the very first year of operation, profits have been assigned to Members rather than distributed to external shareholders. Over the decade, the Profit-Share pool has grown almost sixfold, reaching $15 million in FY2024–25 – with the most recent assignment allocating approximately $4 million to Members.

The compounding effect is becoming tangible. More than 100 Members have accrued Profit-Share Account balances exceeding $10,000, with 17 surpassing $20,000 and nearly 400 holding balances above $5,000. Three advice firms now manage more than $1 million in client Profit-Share Account balances – a figure that would have seemed ambitious a decade ago.^[3]

As of 11 May 2026, PPS Mutual has authorised $256,037 worth of Profit-Share releases to Members – funds that Members would not have received had they been insured with any other provider in Australia.

Michael Pillemer, Chief Executive of PPS Mutual, said the anniversary was a moment to reflect on what a decade of consistent execution had built.

“When we launched in Australia in 2016, the mutual model was largely unknown in the local life insurance market. We had to earn trust – from advisers, from Members, and from the broader industry. What the last ten years have shown is that when you build a business entirely around the interests of the people it serves, and back that with a product that genuinely delivers, people stay. They refer their colleagues. They see their Profit-Share Accounts grow. Through market volatility, a global pandemic, and significant regulatory change, we have shared our profits with Members every year since inception. That consistency is the clearest signal that the model works.

“As we enter our second decade, our job is simply to keep doing what we said we would do – and to do it for more Australian professionals. The number I’m most proud of is the $76 million we’ve paid in claims.^[4] Everything else – the Profit-Share, the retention, the awards – is only meaningful if we deliver when a Member needs us most. That is what this model exists to do,” Pillemer noted.

Delivering when it matters most

Over its first decade, PPS Mutual has paid claims to Members across Life, Trauma, Income Protection, Total and Permanent Disability (TPD) and Business Expenses (BEX) insurance. The 100% claims paid rate on Life and TPD^[13] – with average payments of $762,000 and $933,000 respectively^[13] – reflects the precision of a product built exclusively for professionals. Income Protection claims total over $29 million at a 94% paid rate, with Trauma at the same rate, and Business Expenses at 97%.^[13]

The industry’s most loyal members

Perhaps no measure better reflects PPS Mutual’s first decade than retention. The company has maintained the lowest lapse rate in the Australian retail life insurance industry over ten consecutive years – a distinction that is both a commercial outcome and a statement of Member trust.

For the rolling 12 months to December 2025, PPS Mutual’s annual lapse rate stands at just 5.4% against an industry average of 14.3%^[5] – Members are only about a third as likely to let their cover lapse than the Australian average.^[6] The alignment is by design: Members who stay benefit from growing Profit-Share Account balances, while the business benefits from the premium stability that only a committed, long-term Membership base can deliver.

An adviser community built on exclusivity and trust

PPS Mutual’s products are distributed exclusively through a carefully accredited network of over 2,000^[7] independent financial advisers. This deliberate approach to limited distribution means the company can invest more deeply in each adviser relationship, and ensures Members receive advice from professionals who genuinely understand the mutual model and the clients it serves. That investment has been recognised. PPS Mutual has been named Best Retail Life Insurer by Adviser Ratings for three consecutive years – 2023, 2024 and 2025 – with an NPS of 54.8 against an industry average of 9.5, drawn from more than 3,000 adviser responses.^[8]

The 2025 Adviser Ratings Financial Advice Landscape Report placed PPS Mutual first across six adviser satisfaction measures including product range, business development support, understanding of client needs, trust and overall quality.^[9]

The feeling among advisers, a decade in, speaks for itself.

“Congratulations to the ever-growing team of professionals at PPS Mutual. You have now been helping Australians for a decade. Having worked with PPS Mutual from Day 1, I am grateful for the care on all levels of the business. I appreciate how you view your members and team and the impact this has had on premiums, claims and cover offered to people that need it. I look forward to seeing many more years where PPS Mutual grows and helps more Australians in protecting what is precious to them.”

Serena West, Partner WA / Principal Adviser – MBS Insurance

“The PPS Mutual proposition is highly unique in the market place.  But a product, that is designed specifically for professionals means they are able to design for the nuances of that market.  This sets the key aspects of the product apart! And in a world where all businesses are shareholder value driven, PPS Mutual have our clients best interest at heart with their mutual model.  It helps us feel very comfortable that the three of us (ourselves, the client and the insurer) are in this together for a long term relationship. We’ve loved working with the team at PPS, the service levels, like the product are always premium!”

Paul Milbourne – Business & Personal Insurance Specialist, Milbourne Insurance Solutions

Invested in the industry and beyond

PPS Mutual’s commitment to the professional community extends well beyond its own membership. The company is a longstanding sponsor of the Australian Medical Association (AMA), Engineers Australia, and the RiskInfocus Risk Advice CPD Tour – the life insurance industry’s premier professional development series – reflecting its focus on strengthening the advice profession.

In 2025, PPS Mutual launched the inaugural Risk Practice of the Year Award, attracting more than 30 applications in its first year and recognising advice practices that are helping build a stronger, more sustainable future for life insurance in Australia. Personal Risk Professionals (Brisbane) was named the inaugural winner.

Beyond the industry, PPS Mutual has nominated Pankind – the Australian Pancreatic Cancer Foundation, as its corporate charity – engaging staff and Members in support of one of Australia’s most underfunded cancers.^[10]

Stable leadership and a foundation built to last

One of the most equally important contributors to PPS Mutual’s decade of consistency has been the stability of its leadership. Michael Pillemer has served as Chief Executive since the company’s Australian launch in 2016, and aside from the retirement of Brian Pillemer (who still serves on the board), the senior management team has remained the same across the organisation’s first ten years. In a market that has seen significant change over the past decade, PPS Mutual’s continuity of leadership has meant continuity of purpose – the same people who made commitments to advisers and Members in 2016 are still here to honour them in 2026. This consistence also applies across the PPS Mutual team. In an industry which has seen a large amount of staff turnover, PPS Mutual has had less than 5% per annum staff turnover over the past decade – something the leadership team are very proud of.

Behind the Australian operation sits PPS South Africa – the world’s largest multi-disciplinary group of graduate professionals, with over 80 years of mutual insurance experience and more than $3 billion in profit share assigned to its own Members over the last decade. It is a proven foundation from which the Australian business has drawn both confidence and credibility – and a reminder that the model PPS Mutual brought to Australia has been delivering for professionals around the world for generations.

PPS Mutual’s life insurance products are available only through accredited independent financial advisers. Members must retain some cover for 10 years to gain partial access to their Profit-Share Account, with withdrawals of up to 5% of the balance permitted each year. Full access is granted after 20 years, at age 65, or in the event of death, terminal illness or certain other qualifying conditions.

———

Notes:
[1] Lapse rates referenced reflect PPS Mutual’s performance over the 10-year period to March 2026, with the most recent rolling 12-month rate of 5.4% compared to an industry average of 14.3% (Source: NMG Report, rolling 12-month rate to December 2025). Profit-Share history available at: ppsmutual.com.au/9th-profit-share/
[2] As of 30 April 2026
[3] PPS Mutual Reaches $15m Profit-Share Milestone – PPS Mutual Australia
[4] 9th Profit Share – PPS Mutual Australia
[5] NMG Report on Rolling 12-month rate to Dec 2025
[6] PPS Mutual recognised in adviser ratings report – PPS Mutual Australia
[7] As of 30 April 2026
[8] Life Insurance Adviser | Insurance Quotes | PPS Mutual
[9] Life Insurance Adviser | Insurance Quotes | PPS Mutual
[10] Partner with Pankind
[13] As of 1 July 2025
[14]  As of 14 May 2026

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Launched by sponsor and specialist risk insurer PPS Mutual, who distribute solely through financial advisers, the Risk Practice of the Year Award was established to celebrate the vital role advisers play in achieving quality outcomes for Australians and to recognise advice practices where life insurance sits at the core of the business model, culture and client proposition. Open to firms generating more than 50 per cent of annual new business revenue from life insurance-related business, the award assessed performance across customer excellence, commercial strategy, continuous improvement, cultural strength and industry contribution.

Michael Pillemer, CEO of PPS Mutual, said Personal Risk Professionals exemplified the intent and purpose of the award.

“Risk advice has never been more complex or more important. The profession is operating under intense regulatory and operational pressure, yet advisers continue to play a critical role in protecting Australians at their most vulnerable moments.

“In that context, we congratulate Personal Risk Professionals on being named the 2026 PPS Mutual Risk Practice of the Year. While the other finalists showed notable excellence across particular dimensions – namely client and claims advocacy, adviser development and community contribution – the independent panel judged that PRP was the most complete and robust example when assessed against all criteria as a whole. The panel also placed strong weight on PRP’s active involvement in industry association committees, regulator forums, and insurer advisory boards, as well as their participation in parliamentary engagement in Canberra to explain the impact of reforms on advisers and advocate for the strengthening of the profession,” Pillemer continued.

“The judging panel also noted the high calibre of finalists, reflecting the depth of capability and commitment across the specialist risk advice profession and the high standard of advice being delivered nationally,” Pillemer noted.

Mark Everingham, Managing Director and Partner of Personal Risk Professionals, said the award was a reflection of the firm’s values and the trust placed in the team by clients and professional partners.

“Being named PPS Mutual Risk Practice of the Year is an incredibly humbling moment for our entire team. This award represents far more than professional recognition – it reflects the trust our professional partners and clients place in us, particularly at the most vulnerable moments of their lives, and the values that have guided Personal Risk Professionals since day one: hope, kindness, bravery and honesty.

“The advice industry has faced profound change over the past decade – regulatory reform, rising complexity and a growing shortage of specialist risk advisers. To be recognised in this environment reinforces our belief that high-quality life insurance advice, delivered with genuine care and strong claims advocacy, remains critical to protecting Australian families and businesses,” Everingham said.

“We’re deeply proud of our people, our culture and our contribution to strengthening the profession, and we’re excited about the future as we continue to invest in the next generation of specialist risk advisers and raise the standard of advice across our industry,” Everingham concluded.

As part of the award, PRP will participate in Q&A sessions at each event on the Riskinfocus 26 Risk Advice CPD Tour, Australia’s premier life insurance professional development program, sharing insights with advisers nationwide.

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa since the 1940s – sharing over $3 billion in profits with Members over the last 10 years. PPS Mutual is owned by its Australian Members who share in the profits of the products that they buy.

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Daniel Waller

Specialist insurer PPS Mutual has announced the appointment of Daniel Waller as Head of Distribution, marking the next phase in its national growth and adviser engagement strategy. Mr Waller succeeds Brian Pillemer, who is retiring after playing a key role in establishing and growing PPS Mutual in Australia.

In his new role, Mr Waller will lead PPS Mutual’s distribution strategy, strengthening adviser relationships and expanding the reach of its professional insurance offering. He will play a central role in driving growth through collaboration, engagement, and service excellence across the adviser network.

Mr Waller brings more than 30 years of financial services experience, with deep expertise in distribution leadership, adviser engagement, and strategic business development. He has held senior roles at leading financial institutions including Resolution Life, Asteron Life, OnePath, and ING, where he led initiatives that strengthened partnerships and supported advisers in delivering exceptional client outcomes.

He joins PPS Mutual amid a period of sustained growth and recognition. The business has now surpassed 15,000 Members, reached $106 million in total in-force premiums, and achieved a $15 million Profit-Share Pool milestone for FY2024–25. For the third consecutive year, PPS Mutual was recognised as Australia’s highest-rated insurer in the Adviser Ratings Australian Financial Advice Landscape 2025 report, achieving a Net Promoter Score of 54.8 – nearly six times higher than the average of 9.5 among insurers in the report.

Commenting on his appointment, Mr Waller said: “After taking the past three years to focus on my young family, I’m really looking forward to returning to the industry with PPS Mutual. I’ve always admired how it operates as a true mutual, where Members share directly in the success of the business. Joining at a time of record membership and Profit-Share Pool is a great opportunity to strengthen adviser partnerships and help deliver even more value to Members.”

Chief Executive Michael Pillemer said the appointment marks an important next step in the firm’s growth story: “Daniel’s depth of experience across distribution, partnerships, and business integration makes him an outstanding addition to our leadership team. As PPS Mutual continues to expand its national presence and deepen adviser engagement, Daniel’s strategic insight and leadership will be instrumental in shaping our next phase of growth. He brings a strong understanding of what drives success in this industry: trust, collaboration, and long-term value for Members.”

Reflecting on his tenure, outgoing Director of Distribution Brian Pillemer said: “Having been part of PPS Mutual from its inception, it has been incredibly rewarding to see the mutual model thrive and make a tangible difference to our Members and the advice community. I am proud to pass the baton to Daniel, who brings the right mix of experience, energy, and alignment with our values.”

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa since the 1940s – sharing over $3 billion in profits with Members over the last decade. In Australia, PPS Mutual is owned by its Members, who share in the profits of the products they hold.

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Dr. Asher, an actuary and Associate Professor at UNSW Business School, joined the PPS Mutual Board in 2024 and brings decades of experience across the financial services sector, academia, and industry bodies. His career includes senior roles with Prudential in South Africa, APRA, and Deloitte in Australia, alongside longstanding involvement with the Actuaries Institute and the non-profit sector.

He takes on the role at a time of strong momentum for PPS Mutual, which has recently surpassed 15,000 Members and $106 million in in-force premiums. The business has also been named Australia’s highest-rated insurer for three consecutive years, achieving an industry-leading Net Promoter Score of 54.8 in the Adviser Ratings Australian Financial Advice Landscape 2025 report, while ranking first in six major adviser satisfaction categories including trust, reputation, and client understanding.

Chief Executive Michael Pillemer said Dr. Asher’s appointment marks an important next chapter for the mutual: “Anthony’s unique blend of industry expertise, governance experience and vision makes him the ideal leader to chair our Board at this exciting stage of PPS Mutual’s journey. He brings not only deep technical and governance expertise but also a principled, values-driven outlook. His leadership will help ensure that PPS Mutual continues to grow sustainably while staying true to its mission of serving the needs of Australian professionals.”

Dr. Asher said he was honoured to step into the Chair at a time when PPS Mutual is increasingly recognised for the strength of its model: “The foundation of PPS Mutual lies in alignment with our insured Members – when the company succeeds, Members share directly in that success. That creates a culture of trust that is rare in the insurance sector. I look forward to working closely with the Board, Michael, and his executive team to continue building on this success and ensuring that we deliver consistently for Members and advisers into the future.”

Reflecting on his tenure, outgoing Chair Mike Jackson said it had been a privilege to contribute to PPS Mutual’s development in Australia and to witness the renewed reputation of mutuals globally.

“Over my career I have seen many industry models tested, but mutuals have consistently stood out for their resilience. Globally, during the Global Financial Crisis and again in the pandemic, they held stronger reserves, responded flexibly, and put Members’ interests first. For me, that strength lies in a model that balances commercial discipline with a genuine commitment to the people it serves. It has been rewarding to see that ethos take root in Australia through PPS Mutual, and I am confident Anthony will continue to guide it with the same focus. I look forward to supporting him during the transition.”

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa since the 1940s – sharing over $3 billion in profits with Members over the last 10 years. PPS Mutual is owned by its Australian Members who share in the profits of the products that they buy.

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Michael Pillemer

Specialist risk insurer PPS Mutual has launched the inaugural 2026 PPS Mutual Risk Practice of the Year Award. This landmark award celebrates excellence in risk advice nationwide.

The award will spotlight advice practices that generate greater than 50% of their annual new business revenue from life insurance-related advice. Entrants will be assessed across five core pillars: customer excellence, commercial strategy, continuous improvement, cultural strength, and industry contribution.

Michael Pillemer, CEO of PPS Mutual, said the award comes at a pivotal moment for the profession: “The life insurance industry has endured an unprecedented wave of regulatory change, rising compliance obligations, and increasing operational pressures. Delivering quality risk advice is now more complex and challenging than ever. Yet advisers remain central to protecting Australians’ financial futures.

“Risk advice is the bedrock of financial security for millions of people – but it is also one of the most underappreciated parts of our industry. Through this award, we want to recognise those advice practices that are excelling under pressure, setting new standards, and helping to build a stronger, more sustainable future for life insurance in Australia. Importantly, this award isn’t just about recognition – it’s about empowerment. By elevating the winner’s profile and growth potential, we’re investing back into the advice community we serve exclusively.”

The winner will be announced ahead of the Riskinfocus 26 Risk Advice CPD Tour, Australia’s premier life insurance professional development event. As part of their prize, the winning practice will take part in Q&A sessions at each of the six Riskinfocus 26 events nationwide, sharing their philosophy and insights with peers across the country. Their travel and accommodation will be included, along with a complimentary table of eight at their hometown Riskinfocus 26 event.

To further support business growth, the winner will also receive a strategic marketing tailored prize package including:

• A technical SEO review and growth report from Jaywing, a data-driven digital agency specialising in SEO, analytics, and performance marketing, to improve online visibility and business performance.
• Eight custom social media posts and a complimentary graphic design package to promote their service offering.
• A media release developed and distributed by Madden & Assoc., a Sydney-based specialist communications firm focused exclusively on financial services.

The judging panel features some of the most respected leaders in the life insurance and advice sector, including:

• Angus Woods, Managing Director of Adviser Ratings
• Sue Laing, Technical Director at The Risk Store Consulting
• Peter Sobels, Publisher of Riskinfo
• Marc Fabris, Digital Consultant and Founder of Risk Hub
• Sue Viskovic, Head of Consulting at Vital Business Partners

Applications are now open and close on 27 October 2025.

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Angus Woods

Specialist risk insurance company PPS Mutual has retained its position as Australia’s highest-rated insurer for the third consecutive year, achieving an industry-leading Net Promoter Score (NPS) of 54.8 in the Adviser Ratings Australian Financial Advice Landscape 2025 report.

These results place PPS Mutual in a commanding lead, with an NPS nearly six times higher than the average of 9.5 among insurers in the report, reflecting the strength of its ‘values-based’ mutual model and the trust it has built with a specialist network of accredited advisers and professional Members.

In addition to topping the NPS rankings, PPS Mutual ranked first in six major adviser satisfaction categories – including product comprehensiveness, BDM support, quality, reputation, trust and understanding client needs – and placed second in competitiveness, adviser support, reporting quality and claims handling.

PPS Mutual’s results are driven by a deliberate, long-term approach to growth – serving a defined community of professionals in high-value, high-complexity occupations such as medical specialists, engineers, lawyers, and other experts in specialised industries, through a select network of accredited risk advisers. This market focus, coupled with a deep understanding of adviser and client needs, has created a model built for long-term sustainability – one that delivers superior outcomes through a distinctive proposition, aligned underwriting, and a strong adviser network.

Outperforming a recovering market

The retail life insurance sector has faced significant headwinds over the past decade. New business volumes fell 44% between 2018 and 2024 following the introduction of the Life Insurance Framework (LIF), the Hayne Royal Commission, spiralling premiums, and higher professional education and exam requirements for advisers. This led to a sharp reduction in adviser numbers, fewer advisers writing life insurance, and increased lapse rates.

Adviser Ratings data now points to a turning point, with new business up 11.4% between 2023 and 2025 and adviser authorisation for life insurance rising from 74% in 2019 to 84% in 2025. Meanwhile, PPS Mutual has grown its share of new business to 5.4% in 2025 – up from 2.6% in 2021 – representing almost $17 million in new business written in the past year. In the June quarter of 2025 alone, PPS Mutual’s share rose to 6.9% of all new business written, reflecting strong and sustained demand for its specialist mutual model.

This growth is reinforced by:

• In-force premiums reaching $106 million in FY25 (up $22 million on 2024).
• Membership surpassing 15,000 in August 2025.
• A 3-year compound annual growth rate of 28%.
• A young member base (with 60% of members age 40 or younger) underpinning long-term earnings growth.
• Exceptionally low lapse rates of 5% overall (which includes Members reducing their cover), compared with an industry average of 14.2%[1].
• A phenomenally low Member lapse rate of 1.6% which includes Members retiring, dying and policies expiring.

Angus Woods, Founder and Managing Director of Adviser Ratings, said the 2025 results marked a decisive break from the prolonged contraction that followed major industry reforms: “Following some difficult years for the sector, it’s encouraging to see that life insurance new business is now up more than 11% since 2023, along with an increase in advisers including risk advice in their service offering – suggesting that confidence is returning.

“Importantly, this is not a temporary spike – it’s supported by structural improvements in adviser capability, more efficient product platforms, and a clearer value proposition for clients. Life insurance is one area where this renewed momentum is most visible, but we are seeing similar positive sentiment across other parts of the advice landscape,” Woods noted.

Industry momentum toward specialist models

The report highlights growing adviser and client demand for specialist life insurance models that deliver tailored solutions, high service standards and reduced friction in the advice process – all hallmarks of PPS Mutual’s approach.

Michael Pillemer, Chief Executive Officer of PPS Mutual, said the results were a strong endorsement of the mutual’s business model and industry direction: “In a market still recovering from years of disruption and consolidation, our growth and retention rates show that a disciplined, values-driven approach can deliver superior outcomes for Members and advisers alike. We focus on quality over volume, and we align every part of our process – from product design to underwriting – with the needs of a clearly defined professional market.

“As a mutual, we exist solely for our Members, and our profit-share model means that when PPS Mutual succeeds, our Members directly share in that success. This creates a powerful alignment of interests that is rare in the insurance sector,” Pillemer continued.

“The life insurance sector has an opportunity to rebuild trust and relevance. Models that put the interests of customers first, assist advisers to build the long-term value of their businesses, and deliver consistently on promises, will be the ones that thrive. We believe the future is in the hands of those who lead with purpose, rebuild trust, and support financial advice – and we are proud to be setting that standard. In doing so, PPS Mutual is well-placed to scale its impact, expand its market share, and help define the future of advice-led life insurance in Australia,” Pillemer concluded.

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa since the 1940s – sharing over $3 billion in profits with Members over the last 10 years. PPS Mutual is owned by its Australian Members who share in the profits of the products that they buy.

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Michael Pillemer

The advice industry and Adviser Ratings 2024 Australian Financial Advice Landscape Survey have again honoured PPS Mutual with multiple awards and accolades, reflecting a growing and esteemed reputation garnered by PPS Mutual, its adviser support, service standards and product suite amongst Australian financial advisers.

Among the high satisfaction rankings, PPS Mutual was proud to also take out the coveted ‘Best Retail Insurer of the Year’ for the second consecutive year, and the highest Net Promoter Score (NPS) amongst industry peers.

The PPS Mutual NPS score of 42.3 is a standout result against an industry average of 13.32, with a range of -27.5 to 29.9.

The Adviser Ratings annual report is a detailed overview and survey of the Australian wealth management industry, providing comprehensive insights from Australian advice practitioners and practice heads, and covering financial products, services, fees, client interactions and education.

In addition to ‘Best Retail Insurer of the Year’ and being awarded the highest Net Promoter Score (NPS) for the second consecutive year, PPS Mutual took home several key accolades in the 2024 Survey, including:

• First for Product Comprehensiveness (2nd year in a row)
• First for Online Service Quality and Adviser Support
• First for Claims Handling
• Rated second for ‘Competitiveness’, ‘Ease of Underwriting’, ‘Platform Functionality’ and ‘BDM Support’.
• Adviser satisfaction scores well ahead of the industry in the categories of ‘Reputation’, ‘Trust’, ‘Understanding Clients’ Needs’, ‘Quality of Product’, and ‘Claims Handling’
• The lowest lapse rate – i.e., highest client retention rate – in the industry, at 4.9% compared to the industry average of 15.6%

PPS Mutual chief executive Michael Pillemer said, “PPS Mutual thanks our amazing advice network for the remarkable feedback. We are delighted to have been awarded these prestigious accolades which underscore our dedication to supporting advisers, to excellence in our field, and to the interests of our valued insured Members.

“As a mutual, our focus is naturally geared towards customer retention and satisfaction, as well as sustainability in all aspects of the business. We view these achievements as a strong foundation upon which our collective efforts will continue to build trust and confidence with advisers and our professional Members.”

PPS Mutual has enjoyed significant success in the Australian risk insurance market. In the eight years since inception, it has grown its member base of high-earning and skilled professional clients to over 12,000, and its market share has grown over the past year to capture five per cent of retail advised life insurance business in Australia.

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa. PPS Mutual is based on the proven PPS business model that has been hugely successful in South Africa since the 1940s – sharing over $2.5 billion in profits with Members over the last 10 years. PPS Mutual is owned by its Australian professional members who will share in the profits of the products that they buy.

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Michael Pillemer

Award-winning life insurance company PPS Mutual has announced it will expand its membership eligibility criteria effective from 7 August 2023 and provide its proven model of specialist insurance cover for specialists to a number of new professional categories.

The expanded eligibility criteria will enable professionals across several new disciplines to join PPS Mutual. The changes give even more Australian professionals the opportunity to participate in the mutual model, where members share in the long-term profits of the insurance they buy.

Currently, to join PPS Mutual, Australians must be eligible to practice in one of 24 designated professional groups. PPS Mutual has expanded the eligibility criteria and now offers two pathways to membership. First, the existing Professional Organisation Pathway has been expanded, so professionals who currently are, or have ever been, registered with a designated professional body will be eligible to become PPS Mutual Members.

Secondly, a new pathway has also been introduced: a Degree Pathway. If a professional does not meet the Professional Organisation Pathway, they can still be eligible for membership through the Degree Pathway, where professionals who have completed four or more years of study and have achieved a Bachelor’s degree, Honours, Double Degree, Masters or Doctorate from a selected university within select specialities from the Medical, Commercial, Legal, Technology, Industrial and Science fields are now eligible.

CEO Michael Pillemer said that PPS Mutual has re-examined its eligibility criteria to keep up with changes in the economy, including the expanding technology, healthcare and science fields.

“What sets our insurance products apart are unique features and additional flexibility which have been designed specifically for career-minded professionals. We are expanding the professional groups that we will now insure to expand our reach and relevance in the Australian professional workplace,” he said.

“Our mutual business model has helped PPS Mutual grow its Australian Member base to almost 10,000 in just seven years. With this expansion in eligibility criteria, we expect further growth in the number of members who are seeking to take advantage of comprehensive life insurance. PPS Mutual cover provides certainty and peace of mind to professional Australians. Our member centric focus means customers’ best interests align with our own mission and values.

“As a mutual, our profits go to Members. The more we profit, the more Members profit, and the more they are likely to stay with us, as evidenced by our very low lapse rates.”

PPS Mutual is supported by PPS South Africa, the largest multi-disciplinary group of professionals in the world and the largest mutual company in South Africa. PPS Mutual is based on the proven PPS business model that has been hugely successful in South Africa since the 1940s – sharing over $2.5 billion in profits with Members over the last 10 years.

PPS Mutual is owned by its Australian professional Members who will share in the long-term profits of the products that they buy.

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Michael Pillemer

PPS Mutual has announced its fourth round of profit share rates to eligible Members for the 2020 financial year. This is the fourth consecutive year of profit share allocations made since the launch of PPS Mutual’s Professionals Choice product in 2016.

The rates determine how PPS Mutual Members share in the profits of the insurance they buy.

For the 2020 financial year, the Members of the mutual company will receive a Profit-Share assignment of 7 per cent of premiums.

Additionally, Members have been assigned a further Profit-Share of 4.5 per cent of opening balances (net of tax), providing strong portfolio growth in this low interest rate environment.

This assignment follows the 7 per cent of premiums plus 4 per cent of opening balances for the 2019 financial year.

“We will continue making Profit-Share assignments each year to reflect the operational performance of the Benefit Fund including investment returns,” PPS Mutual Chief Executive, Michael Pillemer said.

“PPS Mutual is the only life insurance provider in Australia who currently offer life insurance products with a Profit-Share. As a mutual, we do not have shareholders, we are owned by the lives insured, and this means that we’re free to share profits back to the Members who buy our insurance policies.”

Policies are only available through financial advisers who have been accredited by PPS Mutual.

“We are proud to share that one adviser group has clients who have received Profit-Share assignments of over $200,000 in 2020 and has clients with balances totalling over $380,000.”

David Davidson, Managing Partner of Melbourne-based risk advisory firm Priority Life said: “PPS Mutual’s Profit-Share is a unique feature of its policies that brings something different to the conversation with existing and prospective professional clients. Now with Profit-Share Accounts reaching over $380,000, our clients are gaining additional value from their insurance. The discussion with prospective clients around the benefits of professional insurance contracts that also provides a profit share has become a much more engaging conversation.”

“Consumer or Member alignment is a vital attribute that goes to the heart of PPS Mutual and our core as a mutual company in Australia. I feel that it is the fundamental mutuality principle of sharing profits with policyholders/ Members and looking after their interests and needs first that has stood the greatest test of time,” Pillemer added.

PPS Mutual Members are required to retain their policies for 10 years to gain partial access to the Profit-Share funds. Full access is granted after 20 years or upon reaching age 65, and also on death, terminal illness, and certain other events.

The post PPS Mutual continues strong profit-share assignment to members for 2020 appeared first on AdviserVoice.

Michael Pillemer

Mutual insurance company PPS Mutual has released the findings of research it commissioned to review front loaded discounts prevalent in Australia’s retail life insurance market and the longer term impacts of this practice.

Undertaken by respected actuarial consultants Rice Warner, the research demonstrates that while new life risk policies (especially for Life, TPD and Trauma) with front loaded discounts can increase affordability in first-year premiums, they are more costly to consumers over the medium to long term.

Front loaded discount policies with stepped premiums have on average lower premiums in the first policy year, but higher premiums from the third policy year onwards.

PPS Mutual chief executive Michael Pillemer said the findings of the report confirms his belief that front loaded discounts represent poor consumer practices that should be fixed by the retail life risk insurance sector in Australia.

“Increasingly, in a bid to secure market share, the retail insurance industry has adopted initial short term discounts for new business premiums. The research demonstrates how over 5–20 years, policies with front loaded discounts have significantly higher premium increases relative to the first policy year,” said Mr Pillemer.

“By way of example, customers of one insurer who have been offering a 25% up-front discount could face increases of 50% plus in premiums in the second year once you also take into account age-based increases and indexation.  The effect that these sharp premium increases have psychologically on a client, and the increased likelihood the client will lapse as a result, should not be underestimated,” he said.

Mr Pillemer contended that front loaded discounts are likely to increase lapses for three reasons. Firstly, they encourage customers to switch to a policy with a lower first year premium in the first instance. Secondly, they mostly have higher premiums on average from the third policy year onwards. Lastly, they will also differ even more markedly to new business quotes where the first year discount still applies.

The report also demonstrates the difference between non-true level premiums and true-level premiums in medium and long-term cost.  Typically, the premiums are very similar for the first five policy years, but by the eleventh policy year the most affordable non-true level premium is higher than the least affordable true level premium.

“In 2019, life insurers lost $1.3bn, lapse rates for traditional life insurers remained stubbornly high at about 17% and policyholders have had to endure significant and repeated increases in premiums (in some cases by more than 35% year on year).

While many of the issues the industry is grappling with are a function of the macro socio-economic environment, an historic and aggressive chase for market share by various insurers has created highly undesirable outcomes for consumers. We believe that there has never been a more important time to reassess past dynamics of the sector, and work towards building a strong and sustainable insurance industry for all Australians.

We must also not allow the inevitable criticism for poor risk management and product design to be sheeted back to advisers.  All too often it is financial advisers that bear the brunt of these poor insurer practices.

As a mutual company, PPS Mutual exists for the benefit of our professional Members. Our philosophy at PPS Mutual is to price our products sustainably and treat our Members equitably. For this reason we do not engage in poor short-sighted practices such as front loaded discounts. PPS Mutual’s lapse rates are one-quarter that of the industry (i.e. 4.5% vs 17%).

We recommend the findings of Rice Warner’s study to financial advisers and their licensees to assist in providing advice that is in the best long-term interest of the client,” Mr Pillemer said.

The report is based on independent research from Rice Warner. Rice Warner’s scoring system allocates equal weighting to both the first-year premium and an aggregated premium total over the initial ten years of a policy. This recognises that life insurance is a medium to long term purchase for most consumers.

Read the full report.

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