Australia’s only mutual life insurer says it would welcome new mutual entrants into the local market, arguing greater competition and member-focused models would benefit both advisers and consumers.
In marking 10 years since the soft launch of PPS Mutual into the Australian market in June 2016, the insurer’s CEO, Michael Pillemer, told Riskinfo he was surprised other mutual insurers had not entered the sector.
“I think there’s an opportunity for other mutuals getting into this market and I think that would be to the benefit of the sector as a whole,” Pillemer said.
He added another mutual entrant would likely be “…good for the industry as a whole” and potentially beneficial for PPS Mutual itself.
Pillemer said the past decade had demonstrated that a member-owned, adviser-supported life insurance model can succeed in Australia, despite a backdrop of adviser attrition and a reduction in insured lives.
He noted PPS Mutual has continued to grow its membership and premium base in a market where overall advice-channel participation remains materially below pre-LIF levels.
By way of context, Pillemer cited APRA’s life insurance data, which he says demonstrates a long-term contraction in insured lives in the individual advised channel between 2018 and 2025. Based on the regulator’s data, insured lives in the advised channel reduced over that period as follows:
Source: APRA Life Insurance Claims and Disputes Statistics database, Policy Statistics / lives insured, individual advised channel.
Against this market backdrop, Pillemer says PPS Mutual has continued to perform strongly. “We now have over 17,000 in-force Members – who have on average 3 benefits per Member – with $132m of in-force premiums,” he said, adding:
“PPS Mutual entered the Australian market as a challenger and is now an established specialist with scale, credibility and a very unique and distinct position in the retail life insurance market.”
We need to continue to focus on reducing those friction points…
In noting the PPS Mutual model distributes profits to members rather than external shareholders, Pillemer identifies its profit share offer as one of the group’s key distinguishing features alongside its professional-member focus and adviser distribution model.
He contrasted the approach with many traditional insurers and mutual structures overseas, saying his firm was deliberately established so Australian members would directly benefit from profits generated by the business.
Pillemer also pointed to what he describes as strong retention outcomes, including:
- A rolling 12-month total lapse rate materially below the broader retail advised market (5.4% at end March 2026 compared to 14.3% for the industry)
- An exceptionally low Member lapse rate of 1.81%, reflecting, according to Pillemer, the strength of the Member proposition and the insurer’s target-market focus
He also highlighted the need for insurers and regulators to reduce “friction points” in the advice process to improve the sustainability of life insurance advice.
“We need to continue to focus on reducing those friction points,” he said, while emphasising this did not include weakening consumer protection: “It’s about reducing unnecessary friction in the advice process while maintaining appropriate standards and safeguards. (see also: Call to Release the Handbrakes on Risk Advice).
We need to get better at supporting advisers…
Pillemer said this issue extends beyond regulation alone, arguing insurers also have a role to play in improving adviser support and operational efficiency. He said the industry needs to make it easier to provide life insurance advice through better systems, improved service, and more streamlined processes.
“It’s not just the regulators. It’s insurers as well,” he said. “We need to get better at supporting advisers.”
He also pointed to technology platforms such as LifeBid and the growing use of AI tools to help advisers improve efficiency and profitability, although he cautioned that technology is not a “silver bullet” in what remained a relationship-driven business.
In looking to the future, Pillemer reflected that the next decade for PPS Mutual “…is about building scale, strengthening service, creating greater value for Members and playing our part in supporting a stronger risk advice sector.”
