South African insurer targets Aussie professionals

Specialist financial services provider Professional Provident Society (PPS) South Africa has entered the Australian retail life/risk insurance sector, targeting doctors, lawyers and other select professionals.

The South African firm launched PPS Mutual, a new company aiming to reach more than 500,000 professionals from 13 fields including medicine, accounting, law and engineering.

PPS Mutual is seen to become the only retail life risk insurance mutual offering in Australia that is available to select professionals through financial advisers.

The new company has developed products relevant to the professional market such as income protection, life, total and permanent disability, and trauma insurances.

“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,” said Michael Pillemer, PPS Mutual CEO.

“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,” Pillemer added.

Pillemer said PPS Mutual will be owned by its professional members who will share in the profits of the products that they buy.

PPS South Africa CEO Mike Jackson, the non-executive chairman of PPS Mutual, said their latest venture marks the company’s 75th anniversary this year and the geographic expansion of its successful business model to the graduate professional market.

Jackson said the decision to expand into Australia followed extensive market research.

“The study clearly showed a gap in the Australian market with regards to a specialised mutual dedicated to servicing the insurance needs of the growing graduate professional market in the region,” he said.

February 23, 2016
Risk Management Magazine