Target market determinations
A Target Market Determination describes who a product is appropriate for (target market), and any conditions around how the product can be distributed to customers.
We’re required to have Target Market Determinations under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019.
This is to make sure we’re keeping customers at the centre of our approach to the design and distribution of our financial products.
International Medical Only
Effective date:16 March 2023
Consumers within this target market
International Medical Only is an international travel insurance policy that is available to consumers living in Australia permanently. Everyone named on the policy must be eligible for a Medicare card.
Adult consumers must be aged between 18 and 118 years old. There is no minimum age limit for insurance although children under the age of 21 years old, who are dependent upon a traveller named on the policy, travel for free.
This policy is only appropriate for consumers travelling outside of Australia and those who intend to return after finishing their journey. It is not appropriate for consumers who are traveling domestically in Australia.
International Medical Only is not a comprehensive policy and only offers cover for medical expenses, loss of life, and personal liability. It is not appropriate for consumers who require comprehensive travel insurance, ski/snowboard cover, moped/motorcycle cover, cover for the costs of travel cancellation or travel disruption during the journey, or cover for personal property.
It is not appropriate for consumers travelling overseas intending to obtain medical or dental treatment or cosmetic surgery/consultation, or for those who have been advised by a registered medical practitioner not to fly.
The product is suitable for travellers on a trip not longer than 12 months. It is not suitable for consumers traveling for longer periods.
This product is suitable for a consumer who is able to pay premiums at the time of purchase at the chosen cost, excess and government charges. If unforeseen additional costs occur, consumers should have the financial means to pay for these costs, then seek reimbursement later. An exception to this is where a customer is admitted to hospital, needs surgery, or needs medical treatment expected to cost over $2,000, in which case, they can call our emergency assist team to arrange support. This product is designed to have regard to consumers’ personal circumstances, vulnerabilities or hardship considerations.
This product including its key attributes is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market, as it provides the required type of insurance cover for that class of consumers. Individual consumers will have to consider whether this product meets their specific objectives, financial situation and needs.
International Comprehensive
Effective date:16 March 2023
Consumers within the target market
International Comprehensive is an international travel insurance policy that is available to customers living in Australia permanently who are eligible to all publicly funded health and disability services.
Adult travellers must be aged between 18 and 118 years old. There is no minimum age limit for insurance although children aged 21 or under the age of 20 years old who are dependent upon a traveller named on the policy travel for free.
This policy is only appropriate for people travelling outside of Australia and those who intend to return after finishing any journey.
Customers can choose between a Single Trip policy – a single return journey that has a maximum journey duration of 365 days - or an Annual Multi Trip policy that allows for multiple journeys within a year, with a maximum duration of 30, 60 or 90 days per journey.
International Comprehensive Australia is not appropriate for people travelling overseas intending to obtain medical or dental treatment or cosmetic surgery/consultation. Nor is it appropriate for those who have been advised by a registered medical practitioner not to fly.
It is not appropriate for consumers travelling overseas intending to obtain medical or dental treatment or cosmetic surgery/consultation, or for those who have been advised by a registered medical practitioner not to fly.
The product is suitable for travellers on a trip no longer than 12 months. It is not suitable for consumers traveling for longer periods.
This product is suitable for a consumer who is able to pay premiums at the time of purchase at the chosen cost, excess and government charges. If unforeseen additional costs occur, consumers should have the financial means to pay for these costs, then seek reimbursement later. An exception to this is where a customer is admitted to hospital, needs surgery, or needs medical treatment expected to cost over $2,000, in which case, they can call our emergency assist team to arrange support. This product is designed to have regard to consumers’ personal circumstances, vulnerabilities or hardship considerations.
This product including its key attributes is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market, as it provides the required type of insurance cover for that class of consumers. Individual consumers will have to consider whether this product meets their specific objectives, financial situation and needs.
Domestic
Effective date: 27 September 2023
Consumers within the target market
Domestic Australia is a domestic travel insurance policy that is available to customers who live in Australia permanently. Everyone named on the policy must be eligible for a Medicare card.
This policy is only appropriate for people travelling in Australia. You should not have already started your journey when you buy this policy.
Adult travellers must be aged between 18 and 118 years old. There is no minimum age limit for insurance although children under the age of 21 years old, who are dependent upon a traveller named on the policy, travel for free.
Cover is available for a single return journey with a maximum duration of 90 days that takes you more than 100 kilometres from your home. You must return home after finishing your journey.
The Domestic Australia policy is not suitable for GST-registered entities.
This product is suitable for a consumer who is able to pay premiums at the time of purchase at the chosen cost, excess and government charges. If unforeseen additional costs occur, consumers should have the financial means to pay for these costs, then seek reimbursement later. This product is designed to have regard to consumers’ personal circumstances, vulnerabilities or hardship considerations.
This product including its key attributes is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market, as it provides the required type of insurance cover for that class of consumers. Individual consumers will have to consider whether this product meets their specific objectives, financial situation and needs.
Working Overseas
Effective date: 10 May 2023
Consumers within the target market
Working Overseas Australia is an international travel insurance policy intended for customers seeking to have an overseas working experience.
Working Overseas is an international travel insurance policy that is available to consumers that are Australian citizens or permanent residents. Everyone named on the policy must be eligible for a Medicare card.
Adult consumers must be aged between 18 and 65 years old. There is no minimum age limit for insurance although any children of the traveller named on the policy must also pay a premium to receive cover.
This policy is only appropriate for people traveling outside of Australia for the purpose to work overseas and those who intend to return after finishing their journey. Those travelling to attend a work conference or business meeting may be more suited for cover that’s available under our International Comprehensive policy.
Working Overseas is not appropriate for those travelling overseas for a holiday purely for leisure or seeking to obtain medical, cosmetic dental treatment or cosmetic surgery/consultation. Nor is it appropriate for those been advised by a registered medical practitioner not to fly.
The product is suitable for travellers on a trip no longer than 12 months unless by exception for USA, UK and Canada where a customer can purchase another policy to commence after the date their insurance ends of their first policy.
This product is suitable for a consumer who is able to pay premiums at the time of purchase at the chosen cost, excess and government charges. If unforeseen additional costs occur, consumers should have the financial means to pay for these costs, then seek reimbursement later. An exception to this is where a customer is admitted to hospital, needs surgery, or needs medical treatment expected to cost over $2,000, in which case, they can call our emergency assist team to arrange support. This product is designed to have regard to consumers’ personal circumstances, vulnerabilities or hardship considerations.
This product including its key attributes is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market, as it provides the required type of insurance cover for that class of consumers. Individual consumers will have to consider whether this product meets their specific objectives, financial situation and needs.
Distribution conditions for all products above
The products only available to be distributed by us or our distributors by any of the following means:
- online via our website
- by calling our customer service team.
The products can only be issued to consumers where they are eligible in accordance with the application criteria.
The products can only be distributed by us or distributors where we and they have received training and relevant accreditation (if required) and have met regular compliance reviews.
The distribution conditions will make it more likely that consumers who buy the products will be in the target market, because the conditions are appropriate and enable the products to be directed to the class of consumers within the respective target markets set out above.
Do you need extra care?
As part of our commitment to looking after customers who may be experiencing vulnerability, including people affected by family violence or financial hardship, SCTI has internal processes and procedures in place to ensure our products and services are accessible and can cater for customers with specific needs.
SCTI defines vulnerable customers as customers and prospective customers whose ability or circumstances require us to take extra precautions in the way that we sell and provide our services to ensure that they are not disadvantaged in any way.
Our staff are trained to identify customers who may be vulnerable so we can take extra steps to assist outside of our standard procedures. However, it is not always possible to recognise customers with additional needs.
If you believe you may fit the criteria of a customer who may be vulnerable, please click here to find out more about the processes we have in place to help you.
Reviewing the TMDs
We will complete a review of the TMDs by no later than the following periods:
a. First review period: two years after the original date of the TMD.
b. Ongoing review periods: At least every two years following the first review period
In addition, we will review a TMD if any event or circumstances arise that we consider reasonably suggest that the TMD is no longer appropriate. This may include (but is not limited to):
- if one or more terms of the product is materially altered
- an event or circumstance occurs that materially changes a factor taken into account when making the TMD, such as a change in eligibility criteria or underwriting requirements
- the discovery of a material defect in the PDS
- if feedback, such as significant or systemic complaints or claims issues, is received from consumers who purchased the product
- if feedback, regulatory orders or directions is received from a regulator, the Code Governance Committee (CGC) or Australian Financial Complaints Authority (AFCA)
- if there is a change in law, regulation, or regulatory guidance that materially affects the product design or distribution of the product (or class of products that includes this product)
- where significant dealings outside the TMD occurs
- if a remediation event relating to this product occurs, and
- claims data for the product.
How the products above can be distributed and distribution conditions
The following conditions apply to these products:
- the products must only be distributed in accordance with this TMD
- distribution of the products must comply with all of our respective underwriting criteria
- distribution of the products must be conducted through our online platform and our contact centre pursuant to specific channel distribution requirements
- the products cannot be distributed where the TMDs are not up to date and no new TMD has been published, and
- the TMDs must be current and not subject to any ASIC action that might suggest that a TMD is no longer appropriate.
These distribution conditions make it likely consumers who are issued the products are in the respective target markets because they are supported by reasonably appropriate controls, training and scripting designed to ensure that the products are distributed to persons within the target markets.
Reporting and monitoring the TMDs
We will collect and are required to report the following information in relation to each of the TMDs.
Reporting period: As soon as practicable but within 10 business days
- Dealings of product outside of TMD
- Any feedback, regulatory orders or directions received from a regulator, CGC or AFCA in respect of the product
Reporting period: Quarterly
- Complaints feedback including:
- Nature of complaints
- Number of complaints
- Claims data including:
- Average claims costs
- Claims acceptance rates
- Claims frequency
- Average claim duration
- Loss ratios
- Sales information including:
- Number of policies sold, including penetration rates
- cancellation rates
Reporting period: Annually
- Annual product review outcomes
This document is not intended to provide financial advice regarding coverage, nor does it form a part of the terms of cover.