Target Market Determination
15th August 2022

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. This TMD was prepared on 15/08/2022. 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.

Purpose of 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 information in this TMD is general only and it is also not a full summary. Please read the Product Disclosure Statement and any other relevant documents for full details of the Insurance.

Who is the target market for this Insurance and what types of cover is available?

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 medical emergencies (overseas only).

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.

Each type of cover is available in 3 different policy types to cover people travelling alone (Single), with a travelling companion (Duo) or with other family members (Family). The different policy types can be selected by consumers to suits 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.

COVID-19 Cover

The Insurance provides cover for overseas medical 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. We will cover the events and circumstances described in the PDS available on our website.

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.

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;
• intend to leave Australia permanently or for longer than 12 months;
• are aged 80 years or more;
• plan to take multiple trips and require one policy to cover all trips (note: the Frequent Traveller Saver cover is temporarily suspended due to COVID-19);
• 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.

Who is the target market for each type of cover?

Domestic Travel Insurance

Domestic Travel Insurance provides 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;
• additional included covers and a choice of optional covers as described in the PDS.

Domestic Travel Insurance is not suitable for customers who:

• are not within the overall target market for the Insurance;
• 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.

The target market for Domestic Travel Insurance also includes customers who wish to add one or more of the optional covers. 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 the relevant PDS to understand the full extent of each cover and other terms and limits that may apply.

Overseas Travel Insurance

Overseas Travel Insurance, which provides 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;
• 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. Our list of select countries is available at www.fastcover.com.au.

Overseas Travel Insurance also 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:

• Comprehensive, which provides the most extensive cover and has the highest premium;
• Standard Cover, excludes some covers and has lower benefit limits than Comprehensive together with a lower premium; and
• Basics, which provides cover for essential 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;
• 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) unless you have been issued a travel exemption by the Australian Department of Home Affairs prior to the purchase date;
• 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.

The target market for Comprehensive or Standard Cover also includes customers who wish to have extended cover or add one or more of the optional covers. Snow Sport Plus adds cover for snow sports on top of Comprehensive Cover. The key attributes of each level of cover available under the Insurance are set out in the table below.

You will need to read the relevant PDS and the COVID-19 Pack to understand the full extent of each cover and other terms and limits that may apply.

Distribution channels and conditions

The Insurance is sold online or over the phone.

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

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

• if you are in the target market;
• if you meet our underwriting guidelines; and
• what premium we should 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.

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’s 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. 

Reporting obligations

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