\u201cI think there\u2019s an opportunity for other mutuals getting into this market and I think that would be to the benefit of the sector as a whole,\u201d Pillemer said.<\/p>\n
He added another mutual entrant would likely be \u201c\u2026good for the industry as a whole\u201d and potentially beneficial for PPS Mutual itself.<\/p>\n 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.<\/p>\n 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.<\/p>\n By way of context, Pillemer cited APRA\u2019s 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\u2019s data, insured lives in the advised channel reduced over that period as follows:<\/p>\n Source: APRA Life Insurance Claims and Disputes Statistics database, Policy Statistics \/ lives insured, individual advised channel.<\/i><\/p>\n Against this market backdrop, Pillemer says PPS Mutual has continued to perform strongly. \u201cWe now have over 17,000 in-force Members – who have on average 3 benefits per Member – with $132m of in-force premiums,\u201d he said, adding:<\/p>\n \u201cPPS 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.\u201d<\/p>\n We need to continue to focus on reducing those friction points…<\/p><\/blockquote>\n 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\u2019s key distinguishing features alongside its professional-member focus and adviser distribution model.<\/p>\n 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.<\/p>\n Pillemer also pointed to what he describes as strong retention outcomes, including:<\/p>\n He also highlighted the need for insurers and regulators to reduce \u201cfriction points\u201d in the advice process to improve the sustainability of life insurance advice.<\/p>\n \u201cWe need to continue to focus on reducing those friction points,\u201d he said, while emphasising this did not include weakening consumer protection: \u201cIt\u2019s about reducing unnecessary friction in the advice process while maintaining appropriate standards and safeguards. (see also: Call to Release the Handbrakes on Risk Advice<\/a>).<\/p>\n We need to get better at supporting advisers…<\/p><\/blockquote>\n 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.<\/p>\n \u201cIt\u2019s not just the regulators. It\u2019s insurers as well,\u201d he said. \u201cWe need to get better at supporting advisers.\u201d<\/p>\n![\"\"](\"https:\/\/riskinfo.com.au\/news\/files\/2022\/05\/Michael-Pillemer-2022-scaled-e1653007127428.jpg\")
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