NobleOak Life will be the insurer for South African group PPS Mutual when it begins operating in Australia next month.

PPS will offer life, income protection, total and permanent disability and trauma covers through its own brand.

NobleOak CEO Anthony Brown says the products will be sold via advisers under the PPS brand.

“PPS Mutual CEO Michael Pillemer is building relationships with independent financial advisers,” he told insuranceNEWS.com.au.

“The products will fit the new proposed legislation regime.”   

While not revealing which insurer made the first approach to the other, he says NobleOak has been working with PPS for the past two years to develop a range of products.

PPS in South Africa is mutually owned, and its Australian operation will be structured in the same way.

It will seek members from among more than 500,000 tertiary-educated people working in 13 professions including medicine, accounting, law and engineering.

NobleOak is registered as a friendly society, as well as being an Australian Prudential Regulation Authority-approved insurer.

“We are very strong on delivering value for our customers,” Mr Brown said. “This presents the opportunity to continue to do this, and we are a strong supporter of mutual.”

Mr Pillemer says the “timing is right for the re-emergence of a well-constructed mutual model within the highly competitive retail life insurance sector in Australia. We are confident our approach will prove successful with professionals, with early indications from the advisory community showing strong support for our new endeavour.”