Target Market Determination 14 July 2023

This Target Market Determination (TMD) applies to all travel insurance products designed and distributed in the Australian market by Fast Cover Pty Ltd ABN 98 143 196 098, AFSL 538708, underwritten by certain underwriters at Lloyd’s. This TMD was prepared on 14 July 2023. We take a consumer-centric approach to the design and distribution of insurance products to make sure that our products are suitable for the consumers who buy them.

About this document

This document is designed to provide information about the class of customers for which this Insurance has been designed and to specify distribution conditions, which together ensure that the Insurance is likely to be consistent with the likely objectives, financial situation and needs of those consumers. The examples of who the product is not designed for and who may fall outside the target market is not exhaustive.

The TMD is not intended to provide any financial product advice, and does not consider any individual customer’s personal needs, objectives or financial situation. It does not replace the terms, conditions and disclosures made in the Product Disclosure Statement (“PDS”). Customers should refer to the applicable PDS before making a decision about the Insurance.

(A) Who is the target market for this Insurance and what types of cover are available?

Product Description including key attributes

This Insurance is suitable for a wide range of customers (meeting the required underwriting acceptance criteria) who require travel insurance for their domestic or overseas trip to cover a range of risks that may arise from travel (travel risks), such as lost baggage, trip cancellation or overseas medical emergencies

There are two main types of cover available under the Insurance:

1. Domestic Travel Insurance, which provides cover against a range of travel risks most commonly arising from travel within Australia, providing you travel at least 200km from your home.
2. Overseas Travel Insurance, which provides cover against a range of travel risks most commonly arising from travel overseas.

Types of Policies

Travel Insurance Benefits (“Benefits”) for the abovementioned domestic and overseas cover types, are listed below in the applicable tables, and are available under 6 different policies as follows:

1. Comprehensive;
2. Standard Saver;
3. Basics;
4. Snow Sports Plus;
5. Domestic Plus;
6. Frequent Traveller Saver.

Not all Benefits are available under each policy. We have set out which Benefits are included under each Policy in the tables below. Customers should ensure that they read the PDS as terms, conditions, exclusions and limits apply to each policy type.

The different policy types can be selected by customers to suit their travel plans and circumstances, which ensures the Insurance is likely to be consistent with the likely objectives, financial situation and needs of the customers.

Already Overseas

We may also offer cover under certain policies for those customers already overseas at the time of purchasing the policy. Our Basics Policy, Domestic Plus Policy and Frequent Traveller Saver policies are not eligible for purchase if you are already overseas.

You should refer to the PDS for additional terms and conditions relating to Policies purchased whilst already overseas.

Insured Persons

Policies are available to cover people travelling alone (Single), with a travelling companion (Duo) or with other family members (Family).

Cover for accompanying dependants is available under the Single and Family Policies, but not the Duo Policy. Dependants are your children or grandchildren or children or grandchildren of whom you are the legal guardian. Up to 10 accompanying dependants can be added to a policy, but each dependant must:

• not be in full time employment; and
• be aged 20 years of age or under; and
• be travelling with you for 100% of the trip.

Pre-existing Medical Conditions

The Insurance provides certain cover for claims relating to or arising from 43 listed Pre-existing Medical Conditions if the person has not been hospitalised for the condition in the past 24 months and any medications for the condition have remained unchanged for the past 6 months prior to taking out the Insurance. Cover is not provided for any pre-existing medical condition that is not listed in the PDS.

Activities

Not all activities are covered under the Policies. We have a list of certain covered Sports and Leisure Activities that are included under all Policies and listed in the PDS. However, a customer may add on or choose one or more of the following options to cover certain additional activities and related events:

• Adventure Pack to cover certain more adventurous activities (not available on the Basics Policy);
• Snow Sports Plus Policy to cover certain snow sports activities and events (snow sports is included under the Domestic Plus Policy so will not need to be chosen if you choose a Domestic Plus Policy);
• Motorcycle Pack to cover certain events if you are the rider or passenger on a motorcycle, moped or scooter (not available under the Domestic Plus Policy);
• Bicycle Pack to provide certain cover for damage to your bicycle (not available under the Basics Policy);
• Cruise Cover to cover sea and ocean cruising;
• Rental Vehicle Excess covers the rental vehicle excess component of the rental vehicle insurance that you have with your car hire company (not available under a Basics Policy and cover of $5000 is included under a Domestic Plus Policy).

The above optional or other covers will be subject to an additional or higher premium. The Benefits covering, and the exclusions, terms and conditions that apply to these additional cover options, are described in the PDS.

COVID-19 Cover

The Insurance provides certain cover for overseas emergency medical, hospital and medical evacuation claims relating to or arising from an insured person contracting COVID-19, as well as limited cover for trip cancellation and trip disruption claims relating to or arising from an insured person or covered travelling companion or close relative in Australia contracting COVID-19.

There is no cover for COVID-19 Trip Cancellation and Disruption under the Basics Policy.

We will cover the events and circumstances described in the PDS available on our website, subject to terms, conditions, exclusions and limitations in the PDS.

Likely objectives, financial situation and needs of customers in the target market

The likely objectives, financial situation and needs of customers in the target market is those customers who require financial and some non financial assistance associated with unexpected circumstances which occur on their travels, such as overseas medical emergencies, trip cancellation and lost luggage.

Customers in the target market will be able to afford to pay:

• premium for the Insurance as well as the applicable excess in the event of a claim;
• any expenses above the accepted claim amount;
• the full amount up front for eligible expenses under benefits that are covered under the policy, before submitting a claim to seek reimbursement for those out of pocket expenses. However, consideration will be made and exceptions made by us to each individual's circumstances, vulnerability or hardship considerations. Claims may be fulfilled either by assistance services, repair, replacement, reimbursement or by cash settlement payment depending on the circumstances.

The Insurance is not designed for people who:

• do not reside in Australia when buying the Insurance;
• do not intend to start and end their trip in Australia unless they meet the underwriting criteria and are eligible to purchase a policy whilst already overseas;
• intend to leave Australia permanently;
• are aged 80 years or more at the time of policy purchase;
• do not fit within the age limits of the policy and cover that they are seeking at the time of policy purchase;
• do not meet the boarding requirements of their chosen airline, shipping line, other carrier, or the entry requirements of the government authorities of their travel destination(s);
• intend to travel to a country that the Australian Department of Foreign Affairs and Trade has, before the start date of your trip, issued a travel advisory risk rating of ‘Level 4 – Do Not Travel’ (or equivalent if the term is replaced);
• may not be able to travel, continue with their trip, or want to cut their trip short because any government body or local health authority closes its borders or imposes any other travel restriction in a relevant area;
• intend to travel to Cuba, Iran or North Korea, as these countries are excluded in the PDS;
• do not have the financial capacity to pay the applicable premium and excess;
• do not have the financial capacity to pay claims above the accepted claim amount;
• do not have the financial capacity to pay the full amount up front for eligible expenses under benefits that are covered under the policy, before submitting a claim to seek reimbursement for those out-of-pocket expenses. However, consideration will be made and exceptions made by us to each individual's circumstances, vulnerability, or hardship considerations. Claims may be fulfilled either by assistance services, repair, replacement, reimbursement or by cash settlement payment depending on the circumstances;
• have any Pre-existing Medical Conditions except for the 43 Pre-existing Medical Conditions listed in the PDS and do not comply with the other underwriting criteria for the listed Pre-Existing Medical conditions in the PDS;
• travel against the advice of any medical practitioner;
• are planning on cruising the sea or ocean for 1 night or more in Australian waters or 4 nights or more overseas, unless the Cruise Cover option has been added at the time of policy purchase;
• do not comply with any other eligibility criteria that we apply and tell them at the time of application.

Who is the target market for each type of cover?

Domestic Travel Insurance

Domestic Travel Insurance cover is contained in our Domestic Plus Policy and provides certain cover against the following travel risks:

• expenses due to trip cancellation, disruption and resumption;
• damage, loss or theft of luggage and personal effects;
• personal liability cover for causing bodily injury and/or property damage in an accident or series of accidents during your trip;
• additional included covers and a choice of optional covers as described in the PDS.

The Domestic Plus Policy is not suitable for customers who:

• are not within the overall target market for the Insurance;
• are intending to cover any medical or hospital expenses;
• travel against the advice of any medical practitioner;
• plan to travel overseas as part of their trip;
• may not be able to travel, continue with their trip, or want to cut their trip short because any government body or local health authority closes its borders or imposes any other travel restriction in a relevant area;
• require cover for Sport and Leisure activities that are not listed in the covered Sports and Leisure Activities or are participating in more adventurous activities and do not take out the Adventure Pack for those Sport and Leisure activities;
• may require cover for participating in sports and leisure activities in a professional capacity on their trip;
• require cover for racing or participating in a race other than a race on foot;
• require cover for trip cancellation or trip disruption expenses caused by cancellation, delays or re-scheduling by an airline, shipping line, or other carrier unless it is due to a strike, riot, hijack, civil protest, severe weather or natural disaster;
• do not comply with any other eligibility criteria that we apply and tell you at the time of application.

The target market for our Domestic Plus Policy also includes customers who wish to add one or more of the optional covers such as the Adventure Pack or Bicycle pack. The key attributes of the included and optional covers available under the Insurance are set out in the table below.

You will need to read and consider the  relevant PDS to understand the full extent of each cover and other terms, conditions, limits and exclusions that may apply.

Overseas Travel Insurance

Overseas Travel Insurance, which provides certain cover against the following travel risks:

• emergency medical, hospital and dental treatment while outside of Australia;
• expenses due to trip cancellation, disruption and resumption;
• damage, loss or theft of luggage and personal effects;
• personal liability cover for causing bodily injury and/or property damage in an accident or series of accidents during your trip;
• additional included covers and a choice of optional covers as described in the PDS.

Overseas Travel Insurance only provides cover for travel to select countries. The list of select countries will change over time, depending on various factors, including information issued by the Australian Department of Home Affairs and Smartraveller travel advice from the Department of Foreign Affairs and Trade. Our list of select countries are available at fastcover.com.au.

Overseas Travel Insurance allows customers to select from 3 different levels of cover, taking into account the amount of cover they require and their ability to pay the applicable premium.

The 3 different levels of cover are:

1. Comprehensive, Snow Sports Plus and Frequent Traveller Saver Policies provide the most extensive cover and have the highest premiums; 
2. Standard Cover, excludes some covers and often has lower benefit limits than Comprehensive together with a lower premium; and
3. Basics, which provides cover for limited risks at the lowest premium.

International Travel Insurance is not suitable for customers who:

• are not within the overall target market for the Insurance;
• require cover for a pre-existing medical condition that is not listed in the PDS under the 43 listed Covered Pre-Existing medical conditions or do not comply with the underwriting criteria to cover those Conditions;
• travel against the advice of a medical practitioner;
• plan to travel wholly within Australia;
• intend to travel to a country that the Australian Department of Foreign Affairs and Trade has, before the start date of your trip, issued a travel advisory risk rating of ‘Level 4 – Do Not Travel’ (or equivalent if the term is replaced) on www.smartraveller.gov.au;
• may not be able to travel, continue with their trip, or want to cut their trip short because any government body or local health authority closes its borders or imposes any other travel restriction in a relevant area;
• plan to travel to Cuba, Iran or North Korea as these countries are excluded in the PDS;
• require cover for trip cancellation or trip disruption expenses caused by cancellation, delays or re-scheduling by an airline, shipping line, or other carrier unless it is due to a strike, riot, hijack, civil protest, severe weather or natural disaster;
• require cover for Sport and Leisure activities that are not listed in the Covered Sports and Leisure Activities or are participating in more adventurous activities and do not take out the Adventure Pack Option for those activities;
• require cover for participating in sports and leisure activities in a professional sport in a professional capacity of any kind on their trip;
• require cover for racing or participating in a race other than a race on foot;
• do not comply with any other eligibility criteria that we apply and tell them at the time of application.

The target market for customers travelling overseas also includes those who wish to have extended cover or add on one or more of the optional covers. The Snow Sports Plus Policy provides cover for snow related expenses in addition to the Comprehensive Policy Benefits.

The key attributes of each level of cover available under the Insurance are set out in the table below.

You will need to read and consider the  relevant PDS to understand the full extent of each cover and other terms, conditions, limits and exclusions that may apply.

(B) Distribution of the Product

Distribution channels

This product is designed to be distributed by Fast Cover. This product is issued by Fast Cover Pty Ltd AFSL 538708 on behalf of Certain Underwriters at Lloyd’s.

Travellers can purchase this product via our website or over the phone through our dedicated customer service contact centre.

Travellers can only purchase this product via our website or over the phone as our representatives in the customer service contact centre are adequately trained in the distribution of the product covered by this TMD.

Distribution conditions and restrictions

Fast Cover is required to take reasonable steps to ensure that the product is distributed to a customer in such a way that it is likely to meet the customer’s objectives, financial situation and needs.

We do this in various ways including the type of platforms that we use to advertise and market the Insurance and assist us in directing the Insurance to the desired target market, through the various landing pages on our website with content specifically drafted in contemplation of the intended target markets, through call centre scripts designed specifically for our Insurance, as well as through the application process itself.

Before you purchase the Insurance, you will be asked a series of questions in the application process designed to help us decide:

• If you are in the target market;
• If you meet our underwriting guidelines and eligibility criteria; and
• What premium we will charge.

We have a range of supervision and monitoring procedures to ensure that customers are asked these questions and that they are only offered the Insurance if they are likely to be in the target market for the type of cover and applicable key attributes. With the combination of these questions and other measures including targeted marketing and advertising, targeted website content and specifically designed call centre scripts, we are ensuring that the Insurance is likely being acquired by customers in the intended target market.

Products under this TMD can be distributed directly by Fast Cover and by distributors approved by Fast Cover. Approved distributors and their systems and procedures are assessed and monitored by Fast Cover and it will therefore be more likely that the distributors will comply with the terms of this TMD.

(C) Review of this document

We will review this TMD regularly to make sure it remains appropriate. The first review will be within 12 months of the date it is prepared, and then within 3 years of completion of the previous review thereafter.

As well as our regular reviews, additional reviews may be triggered if we determine that there has been an event or circumstance that reasonably suggests that this TMD needs to change. This would be the case if it is no longer reasonable to conclude that:

• if the Insurance is issued to a customer in accordance with the distribution conditions, it would be likely that the customer is in the target market; or
• the Insurance is likely to be suitable for customers in the target market.

Review triggers could be identified from: 

• changes to the Insurance terms;
• compliance incidents and internal audit findings;
• information received from and/or in relation to distributors (see below);  
• changes to our underwriting guidelines, pricing, or reinsurance requirements; and 
• feedback and policy from ASIC, AFCA, Code Governance Committee and/or other relevant bodies.  

We take reasonable steps to monitor relevant information (including the information referenced above) and other metrics to assess if our TMD needs to be reviewed and reassessed. 

(D) Reporting obligations

We are required to report the following information to Lloyds, the insurer at the following times: