Understanding Target Market Determinations
Understanding Which Products Suit Your Needs
Every insurance product is designed with a specific type of customer in mind. When we recommend a product to you, we’ll:
- Check that it’s suitable for your situation
- Explain why it’s a good fit (or why it isn’t)
- Make sure you understand what’s covered and what’s not
- Give you the documents you need, including the Product Disclosure Statement. We can also give you the Target Market Determination on request.
What are target market determinations?
A Target Market Determination (or TMD) is a document that explains who a product is designed for, what it does, and the circumstances or events that may lead the insurer to review the product, causing it to no longer be suitable or accessible to you.
Why do insurers provide TMDs?
The law (section 994B of the Corporations Act 2001 (Cth)) requires insurers, premium funders and underwriters to create TMDs so that products are designed with customers in mind.
Do I still need to read the Product Disclosure Statement (PDS)?
Yes. The TMD is a summary. It doesn’t replace the full terms and conditions in your Product Disclosure Statement. Always read the PDS before buying insurance.
Which products have TMDs?
TMDs apply to a range of retail insurance products, including most personal insurance, insurance for small businesses and premium funding arrangements.
How do I get a copy of the TMD?
TMDs are prepared and published by insurers and underwriting agencies. If you would like to review the TMD for a product we have recommended, just ask your Adviser, we are happy to point you to it or provide a copy.
