What’s a Target Market Determination? (TMD)
From 5 October 2021, Insurers and Brokers need to comply with new laws under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019. This requires Insurers to have Target Market Determinations, which is a document that describes who a product is appropriate for (target market), and any conditions around how the product can be distributed to customers.
This is to make sure Insurers are keeping customers at the center of their approach to the design and distribution of insurance products. Insurers have a consumer-centric approach to the design and distribution of their products, with the aim of helping consumers to obtain financial products that are appropriate for their objectives, financial situation and needs. It also describes the events or circumstances where they may need to review the Target Market Determination.