The results of a feasibility study, particularly assessing the volume of the market here in New Zealand and the possibilities of drawing on Australia, are expected soon. It is estimated there are about 40,000 Muslims in New Zealand.
If the project gets the green light, Ballantyne says it would seem appropriate to launch the products in February next year – at the time of the Islamic New Year.
Ballantyne says Islamic, or Al-Takaful, products are complex. They have taken months of study and it is not an easy decision.
Al-Takaful products must adhere to strict Islamic law surrounding financial instruments, including how profit is generated and shared, where underlying funds are invested and the nature of the risk benefits.
She says offshore markets where these products have been successful and profitable have grown quickly and are used by Islamic and non-Islamic investors.
But Ballantyne says ING has an eye on the Australian market.
ING Life may be the first cab off the rank if it decides to go ahead. But more Al-Takaful instruments may follow, especially in banking and investment.
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