Mutual insurance returns to market

As reported by Good Returns earlier PPS Mutual has has been working on setting up New Zealand operations including hires from other life companies.

This week it has been granted a licence to operate, and it has been doing adviser induction courses prior to the licence being granted.

It is a return to the mutual approach where policyholders share in the company’s financial success through its Profit Share Benefit.

“We’re proud to be offering a model that underpins our belief that success is better shared, prioritises and rewards our members,” PPS Mutual chief executive Billy Lynch says.

Previously many of the life insurers where mutuals, think of AMP, National Mutual (AXA), etc, but these companies ended up being demutualising. Mutuals still exist in in others areas like banking in New Zealand.

Lynch says in a statement, “securing the RBNZ licence is our most significant milestone in establishing PPS Mutual in New Zealand.”

“We’re now focused on bringing our mutual model to life by building a trusted, adviser-led business that offers tailored insurance solutions and long-term value to New Zealand professionals.”

While it embracing financial advice it is only using "a select group of accredited, independent financial advisers."

“We believe strongly in value of independent financial advice,” Lynch says. “We have specifically designed our proposition to meet the needs of professionals, and our distribution approach recognises the critical role advisers play in guiding clients through complex decisions about risk and financial protection.”

About PPS

The Professional Provident Society (PPS) is a global network of independent mutuals that operate under a shared brand and vision. Founded in South Africa in 1941 by a group of dentists committed to supporting one another through life’s uncertainties, the PPS Group in South Africa has grown to serve over 150,000 professionals.

PPS Mutual New Zealand will build on the PPS legacy, proven model and operate as a fully independent mutual entity with an independent board, local management, governance, and decision-making.

“Our mutual structure means our focus is on delivering long-term value to our members,” Lynch said. “It’s a model that aligns our purpose with the interests of the professionals we cover.”