PPS Mutual made the comments as it announced its second profit sharing assignment, whereby members would receive 7 per cent of their total premiums paid in relation to the 2017-18 financial year plus 2 per cent of the opening balance of their profit-share account.
PPS Mutual chief executive Michael Pillemer said he was thrilled that it has been able to assign a profit share for the second year in a row.
“We believe the success of the profit share reflects that our model is viable and that as a mutual we can take a long-term view,” Mr Pillemer said.
“Given the current background of the Hayne royal commission and consumer dissatisfaction with traditional providers, we believe the mutual model can offer Australian professionals a radical reappraisal of how life insurance can work.”
PPS Mutual said its members are required to retain their policies for 10 years to gain partial access to the profit share funds.
Full access is granted after 20 years or upon reaching age 65, on death, being diagnosed with a terminal illness or on certain other events.
Pity they only cover professional lives
What customer dissatisfaction with life insurance? the only issues clients have is that some premium rises have increased cost of policies by 50% at the third year of renewal.