The culture of ongoing development and introduction of new and improved products and services to PPS members saw a number of innovative and significant improvements in 2016. The Critical Illness benefit was redefined and a new product, Education Cover, was introduced. This benefited PPS through increased sales, share of market and better retention of existing business.
By redefining the Critical Illness conditions for improved clarity and transparency to the members, as well as covering more conditions without an increase in premiums, higher sales were seen.
PPS’ Sickness and Permanent Incapacity products remain the cornerstone of PPS’ offerings, introduced at the inception of PPS 76 years ago. The addition of an extensive range of mortality and morbidity benefits have helped ensure continued growth in the past ten years.
PPS Life Broker Services enjoyed a very successful year, buoyed by increased support from PPS’ long standing and loyal independent advisers and by continued innovation of products and services to this market.
Total gross life premiums of over R3.6 billion (up 12% from prior year) have been received, supported by a 9% growth in new members.
The total number of policies in force increased healthily in 2016 to 261 763 and PPS continues to enjoy exceptionally low lapse rates, and high average sums assured on written business.
The business achieved pleasing growth in members and policies in a difficult market where growth has stagnated. Management expects continued healthy growth in policies, premiums and market share because of the significant investments in recent years in distribution depth and breadth, and continued product innovation.
As the Society enters its 76th year, PPS will continue to serve its members by providing world class financial services covering needs from graduation to retirement.
|SICKNESS AND LIFE INSURANCE||KEY INDICATORS||2016||FIVE-YEAR REVIEW|
|PPS Insurance Company provides long-term life, sickness, dread disease and disability insurance to eligible members. In terms of the mutual model, all the profits are ultimately attributable to our members.||Total assets*||R31.4 billion|
|Gross premium revenue||R3.6 billion|
|New annual premium income||R565.8 million|
|* Excluding assets in unit trusts for third parties|