PPS Mutual announced today that it will soon be opening its doors as a historic entrant to Australia’s $7.5 billion* retail life risk insurance sector.
Targeting a market of over 500,000 select professionals**, PPS Mutual launches with the support of South Africa’s largest mutual company, Professional Provident Society SA, known as PPS (SA).
PPS (SA) is the largest multidisciplinary group of professionals globally, and a long-established and successful South African financial services group.
PPS Mutual will become Australia’s only retail life risk insurance mutual offering available to select professionals through financial advisers. The organisation is headed by Michael Pillemer, CEO.
Mr Pillemer said: “We are proud today to announce the formation of PPS Mutual, an organisation that will be owned by its Members and founded on the ethos of mutuality where Members share in the profits of the insurance that they buy.
“We believe the timing is right for the re-emergence of a well-constructed mutual model within the highly competitive retail life risk insurance sector in Australia. We are confident that our approach will prove successful with professionals, with early indications from the advisory community showing strong support for our new endeavour.
“We are very pleased to be partnering with PPS (SA) on its first venture into the Australian market, APRA regulated insurer NobleOak Life Limited, and one of the world’s largest reinsurers.”
PPS (SA) CEO Mike Jackson is non-executive chairman of PPS Mutual. Mr Jackson is a distinguished global insurance executive, and serves on the Board of the International Cooperative and Mutual Insurance Federation.
Mr Jackson said the launch of PPS Mutual marks a major milestone for the PPS Group, as it geographically expands a successful business model to the graduate professional market. “This is a particularly proud moment as we look to celebrate our 75th anniversary this year,” he said.
PPS Mutual has developed products relevant to the professional market such as Income Protection, Life, Total and Permanent Disability, and Trauma insurances.
*Source: Rice Warner, based on annual premium income
**Eligible Members will include tertiary-educated Australians practising within one of 13 select professions, including medicine, accounting, law and engineering.