The Australian Securities and Investments Commission (ASIC) has written to the Insurance Council of Australia, the Council of Australian Life Insurers and the Financial Services Council about its review of over 100 Target Market Determinations (TMDs) for general and life insurance products.
The letters outline ASIC’s findings based on a sample of general and life insurance products. ASIC considered that the products reviewed represent higher risk and/or potential for poor value to consumers. Each TMD was examined against the TMD requirements in the Corporations Act 2001 and ASIC Regulatory Guide 274 Product design and distribution obligations (RG 274).
The letters also outline how insurers could make improvements to their TMDs.