NEWS June 22, 2026
The insurance company that shares its profits with its policyholders
Engineers insured by PPS Mutual don’t just have the peace of mind delivered by a premium policy. Because PPS Mutual is a mutual insurance company, it is owned by its members, meaning they reap the benefits from its success.
There are a few qualities that make PPS Mutual unique among insurers in Australia. For a start, the company exclusively services professionals, such as engineers.
And the professionals who purchase a policy from the company are more than customers. As members of the only retail life insurance mutual in Australia, PPS Mutual’s policyholders are also the company’s owners.
That marks another point that distinguishes PPS Mutual from other insurers: it is the only insurance company in Australia whose members directly share the company’s profits.
“Because we’re a mutual insurer, we’re not listed on the stock market, so we are not owned by shareholders,” said Karena Cox, PPS Mutual’s Western Australian Business Development Manager.
“We are owned by our members, and anyone who buys an insurance policy with PPS Mutual instantly becomes a PPS Mutual member. You actually become an owner of the business.”
That kind of relationship is why the people who purchase insurance from PPS Mutual are members rather than policyholders – they’re even invited to the company’s annual general meeting to participate in its decision making.
For the benefit of members
That relationship also changes how PPS Mutual’s members think about their insurance. No customer in the insurance market should ever want to make a claim; they purchase a policy to receive compensation in case serious events affect their health, life or ability to earn an income. For most people, the money spent on insurance is money they won’t see again.
As owners of the business, PPS Mutual’s members share in the profits of their insurance, even if they don’t ever have to make a claim. In fact, PPS Mutual is the only retail insurer in the Australian market that offers a tangible benefit without the need for any health or physical requirements.
“Each member’s benefits accumulate in their own Profit-Share Account, and once their policy has been in place for more than 10 years, they can take up to 5% of their balance each year. After 20 years, or on reaching the age of 65, you can access the full amount in the Profit- Share Account,” Cox said.
Karena Cox
PPS Mutual members who do have to make a claim will not see any associated penalties in their Profit – Share Accounts. Even members who are on claim for income protection and not paying premiums will continue to keep their Profit-Share Account.
“We have one member who, after paying two premiums, was unfortunately diagnosed with a severe neurological impairment, meaning he could no longer work,” Cox said.
“He had 10 years left on his policy, so we continued allocating to his profit share, even though he wasn’t paying a single premium.”
A premium product
Many members have started withdrawing funds from their Profit-Share Accounts. By May 2026, the company had authorised more than $256,000 worth of profit share releases to its members – funds they would not have received had they been with any other insurance provider in Australia.
“Seventeen members have accrued more than $20,000 in their profit share account,” Cox added.
“Another 101 members have accrued more than $10,000 in profit share, and there are 390 members with more than $5000 in their profit share account.”
Delivering a share of profits to members also adds an incentive for them to maintain their policy with the company. PPS Mutual’s profit-share pool has grown every year since the company launched, meaning the longer a member has retained their policy, the more they’ve watched their personal accounts grow.
As a result, PPS Mutual has the lowest policy lapse rate in the industry, which, in turn, shapes the way the company approaches its business.
“PPS Mutual plans are designed specifically for those professionals who are eligible for insurance with us,” Cox said.
“Because we’re thinking from the perspective of a mutual insurance company – a mutual does not have shareholders to please – it differentiates the way we price our products. We’re always thinking about how price changes will impact our members because those members are also owners of the business.”
It also encourages the company to ensure its policies are of the highest quality, with every one of PPS Mutual’s policies rated among the best in the market.
“A life insurance company that’s listed on the stock exchange has to make a profit for its shareholders, but because we don’t have that pressure, we have a true alignment of incentives between our owners and our policyholders, because they’re one and the same,” Cox said.
