PPS Mutual retains top adviser rating as specialist model outperforms

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.