PPS Mutual has indexed its professionals’ policy benefits against a realistic, proprietary measure of their earnings growth.

The life insurer’s Professionals Earnings Index notes professionals’ earnings are rising faster that overall inflation.

The index includes independent data used by PPS to benchmark its life insurance benefits annually.

It has recorded an increase in the index of 3.9% a year, reflecting a rise in real professional earnings from 2014 to last year.

The consumer prices index (CPI) increased by 1.3% a year over the same period.

PPS CEO Michael Pillemer says the indexation for all members will be 3.9% a year during the next year, across all its life insurance products.

“We offer life insurance products just to professionals,” he said. “We can therefore index members’ policy benefits to earnings growth solely for the occupations we cover, or inflation if that was to be higher in any year.”

Mr Pillemer says this sets PPS apart from other insurers, which generally index their cover benefits to the CPI.

“We believe our approach better meets the needs of professionals, and given that professional earnings have historically increased at a far greater rate than inflation we are generally indexing members’ benefits at a higher rate.”

The insurer offers a range of life products for select professionals, including accountants, doctors, dentists, lawyers and engineers.