A Chat with Brian Pillemer: The Expanding Horizons of PPS Mutual
PPS Mutual has been in the spotlight not only for its commitment to broadening membership eligibility but also for its significant profit-share announcement.
This year, they have declared a noteworthy profit-share to their members, drawing attention to their unique mutual model. Coupled with research from Adviser Ratings that highlights advisers’ strong preference for PPS Mutual’s services, it’s clear the company is making impactful moves in the market.
Despite currently serving a smaller proportion of the market, these developments could signal a shift.
We sat down with Brian Pillemer, Director of Distribution at PPS Mutual, to explore these latest advancements and what they mean for the future of the company.
Opening the Door: PPS Mutual’s Innovative Approach
Q: Brian, the recent announcement about PPS Mutual’s profit-share has garnered a lot of attention. Could you elaborate on what this means for your members?
Brian: Absolutely. This year, we’ve achieved a significant milestone by declaring a profit share of 5% of premiums, which equates to a post-tax 3.5% profit share rate for our members. This is a clear demonstration of our mutual model’s strength and our commitment to our members. It means that every member benefits directly from our success, reinforcing the value of their association with PPS Mutual.
Q: How does PPS Mutual’s profit-sharing model align with the company’s values and its approach to insurance?
Brian: Our profit-sharing model is a fundamental aspect of our mutual structure. It’s not just about distributing profits; it’s about creating a community where everyone shares in the success. This model aligns perfectly with our values of mutual benefit and community. It distinguishes us in the market, as we’re the only retail life insurance company in Australia sharing profits with members. It’s a testament to our commitment to putting our members first in everything we do.
Q: With the profit-share pool growing significantly over the past years, what does this indicate about PPS Mutual’s performance and future direction?
Brian: The growth of our profit-share pool, from $500,000 in 2017 to $7.9m in 2023 is a strong indicator of our financial health and robust business performance. It’s not just about the numbers; it’s about the consistent value we’re providing to our members. Looking forward, we aim to continue this trend. Our focus remains on sustaining a profitable, member-centric business model that continues to reward our members not just in the present, but well into the future.
Q: Brian, there’s also been a bit of noise around about PPS Mutual’s expansion in occupation eligibility. What prompted this decision, and does it have anything to do with the feedback from Adviser Ratings?
Brian: It’s a blend of factors. The positive reception from advisers definitely reaffirms our strategy. Since PPS Mutual launched in June 2016, the PPS Mutual offering has only been available to a select group of professionals. The eligibility criteria were guided by the PPS South Africa eligibility model, however were narrower and more conservative to reflect the structure of the Australian professional bodies. Experience since launch has shown us that by being so restrictive we are missing the opportunity of offering our specialised insurance products to many more Australian professionals. So we’re building on our successes and recognising shifts in the professional landscape, aiming to make our membership criteria more accessible and relevant.
Q: Could you break down the two new pathways to membership for us?
Brian: Certainly! We’ve got the existing Professional Organisation Pathway and a new Degree Pathway, catering to professionals.
A Growth Story: Reaching Beyond 10,000 Members
Q: You’ve recently hit the 10,000-member mark in Australia. How does the expansion plan align with this milestone?
Brian: We see growth as an opportunity to enhance collective benefits for our members. We’re not just looking for numbers; we’re looking to grow with purpose, nurturing a community that shares our values.
Uniquely PPS Mutual: A Mutual Model with a Twist
Q: PPS Mutual is known for its unique features. What sets you apart from others in the market?
Brian: Our mutual model and alignment with career-minded professionals make us stand out. Our mutual model ensures not only that our Plan holders (Members) come first, in terms of how we design and price our Professionals Choice product, but benefit from our success, as they are not shareholders, share in the profit of their insurance. And by only offering our product to a select group of professionals we’re able to include features in our products that we would not be able to do if offered to the population at large.
Global Insights: Learning from Success
Q: How has PPS South Africa’s success influenced your approach here in Australia?
Brian: Their success in sharing profits with members is a beacon for us. PPS South Africa has distributed over $2billion to its Members over the last 10 years and has been in operation since 1941. Their success has shown us how a mutual model can benefit professionals and that Australian professionals should be offered the opportunity to benefit from this type of a client centric personal insurance model.
The Future and Supporting Advisers
Q: So, what’s next for PPS Mutual? And how are you looking to further support advisers?
Brian: Our journey has been exciting, and there’s much more ahead. We’re exploring new ways to collaborate with and support advisers, through first to market research initiatives that will assist our accredited advisers in understanding the health and wellbeing needs of our professional groups, identify their insurance needs and how to identify their insurance gaps and the very real cost of care in Australia.
Conclusion
PPS Mutual’s commitment to inclusivity and growth is clear, and their reputation amongst advisers is a testament to their quality. As they open doors to more professionals, they also reaffirm their core principles of community and alignment.
For those looking to explore opportunities with an insurer focused on a strong member- centric philosophy, PPS Mutual is certainly one to consider.
For more on the Profit-Share growth head here https://www.ppsmutual.com.au/7th-profit-share/
Or on the occupation eligibility head here https://www.ppsmutual.com.au/eligible-professions/