Challenger has signed a five-year contract with Marlborough Stirling’s TPA service to build a business in the UK that will initially focus on retirement income products. However, Marlborough Stirling will also be building pre-sale annuity illustrations system for Challenger.
Brett Newman, CEO of Challenger’s UK, said: "This partnership means that Challenger can focus on business development, confident in the knowledge that through Marlborough Stirling’s considerable experience in administering policies, we will be able to deliver cost effective, superior service to our customers."
The deal was partly based around Marlborough Stirling’s administration set-up which promises to keep overhead costs to a minimum while maintaining a level of service to IFAs and clients alike. In theory, Challenger will then be able to pass on these cost advantages to the customer through competitively priced products and services.
Dave Power, director of outsourcing at Marlborough Stirling, said: "This latest deal highlights the strength and breadth of Marlborough Stirling's outsourcing services, which are ideally suited to enabling both established players, such as Sun Life Financial of Canada and new market entrants such as Challenger, to run lean and focused operations. We are delighted to have been chosen as the engine room for such a dynamic new proposition to the life market and look forward to helping the company achieve its ambitious growth plans."