Mutual insurer announces Australian life/risk launch
South African insurer, Professional Provident Society (PPS), will join the Australian life/risk insurance sector this year, targeting accountants, engineers and other professionals.
The firm is partnering wth Australian Prudential Regulation Authority (APRA) regulated insurer NobleOak Life Limited, to launch the country's only retail life risk insurance mutual offering available to select professionals, which will be available through financial advisers, the firm's Australian chief executive 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," he said.
"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."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
The firm has announced it will no longer be writing new life insurance policies in the retail advised and corporate group insurance channels, citing a declining market and risk adviser numbers.
