ING Australia has set up a business unit for the purpose of developing a range of annuity-style products for the Australian market.
The retirement and investment solutions arm began operation in early October, and is headed by former ING Australia executive director of personal investments David Kan.
"We are looking to address the absence in Australia of products that mitigate against market movement risk, inflation risk, and longevity risk... we have had a situation where allocated pensions have been the predominant product and haven't addressed those issues," Kan said.
One product Kan and his team is looking to launch is an annuity with an in-built capital protection component, aimed at people in the final stages of the accumulation phase and who are about to begin drawing a retirement income stream in the near future.
"We want to create a market-linked investment tool to give people the benefit of the growth in the upside, but with a guaranteed floor in terms of the principal amount and... the resulting annuity stream people will get in retirement," he said.
The unit represents a significant move initiated by Harry Stout, since being appointed as chief executive of ING's Australian operation earlier in the year.
"He was the head of the retail variable annuities business unit for ING in the US prior to his arriving in Australia, and they offered guaranteed retirement income stream products," Kan said.
The division is expecting to launch its first offering in the second half of 2009.
The new products will initially be included on ING's OneAnswer platform with later inclusion on external investment platforms.
