Challenger flags direct 10 minute online fixed term annuities

Mike Taylor

Managing Editor/Publisher, Financial Newswire

16 August 2023

Challenger Limited has flagged the launch of a new direct channel for its annuities sales, claiming it will allow customers to buy a simple fixed term annuity online in under 10 minutes.

In an investor briefing accompanying its full-year results, Challenger pointed to the “retail direct” option as one of four new channels it will be opening up to broaden customer access and support sales growth.

It would operate alongside “annuities on platform” enabling advisers to switch to purchase term annuities within an account-based pension.

The investor briefing said the new direct channel for annuities sales was a response to customers’ preference to investment directly in circumstances where more than 50% of older Australians perform online banking at least once a week.

It said the retail direct approach would replace existing paper-based processes and reduce cost to service.

Challenger’s outline of the “retail direct” approach came as the company reported a robust full-year result with net profit after tax up 13% to $288 million on the back of record annuity sales.

The board announced a dividend of 24 cents per share.