A Conversation with… Izak Smit

Izak Smit is Group Chief Executive of the Professional Provident Society (Pty) Ltd (PPS) (South Africa)

Tell us about your organisation?

PPS is the Professional Provident Society. We’re headquartered in Johannesburg, South Africa, but we also operate in Namibia, Australia, and New Zealand – and we are proudly a mutual organisation. We were founded back in 1941 during the Second World War, which was an unusual time to launch a new business, but also a moment when people were thinking seriously about the future and protecting income. Today, we serve about 150,000 professionals, generate roughly 7 billion rand (US$400 million) in revenue, and last year returned the equivalent of around US$300 million to our members.

We operate across the financial services spectrum. In short, we’re a one-stop home for the professional market.

Why is being a mutual so important to you?

It’s a model you really fall in love with. Mutuals start with a purpose — a community coming together to solve a need. Unlike stock companies, we don’t have outside shareholders. That means no leakage of value. All profits are returned to members. We don’t call them customers — they are members and owners. Everything we do is for them, and that’s a powerful motivator.

Sometimes regulators struggle to understand us because they’re used to dealing with shareholder-driven businesses. Those companies are under constant pressure for quarterly results, while we take a long-term view. I often joke with regulators, “If all insurers were like us, you wouldn’t have a job.” Obviously, it's a bit mischievous when I say that, but the point is serious: everything we do is in the interests of members.

What does that look like in practice?

The impact is huge. First, it’s about the protection we provide. If someone falls ill or suffers disability, the support we give can be life-changing. I’ve had members tell me, “If it wasn’t for PPS, my family would have been financially broken.” That kind of feedback reminds us why we exist.

Second, the profit allocations make a real difference. Year after year, profits are credited to members. Over time, that builds up and becomes a substantial nest egg. Often, it fills gaps in retirement planning and provides members with an additional sense of security.

Third, as a mutual, we invest back into society. For PPS, education is close to our hearts because our market is professionals. We fund bursaries, sponsor universities, and support tertiary education. I’ve met students who’ve said, “Without PPS, I wouldn’t have become a doctor.” Those stories are incredibly moving.

Insurance itself is built on the principle of people coming together — pooling resources so that when something bad happens to one person, the group supports them. That’s what makes the mutual model such a natural fit. It takes that principle and ensures the benefits are retained within the community, not extracted by shareholders.

Why did you want to get involved with the CM50?

It’s a wonderful platform to highlight the value of mutuals and cooperatives. The financial services industry is heavily regulated, and starting new mutuals is very difficult. But existing mutuals have proved themselves for decades. CM50 brings us together to share best practices and push for recognition from policymakers. 

I am looking forward to different stakeholders talking, appreciating, and learning from each other at – and after – the World Social Summit in Doha. I think the real value is often in the informal conversations, but one mustn’t lose momentum at Doha. It should be a catalyst for more cooperation, more piggybacking on each other’s work and ideas, and making sure that cooperatives and mutuals as a business model are well appreciated. It must also become easier for them to be formed and to blossom.