As part of the new Product Design and Distribution Obligations (DDO), insurers are now required to create written Target Market Determinations (TMDs) for all products which are accompanied by a PDS.
TMDs describe a class of retail clients that comprise the target market for the product, specify any conditions and restrictions on the distribution of retail product, specify events and circumstances that would reasonably suggest the TMD is no longer appropriate, and specify reporting periods for when complaints about the product should be provided to the insurer. The TMD must be publicly available.
From October 5. 2021, Distributors such as Aon must ensure that any retail client that is sold a product with a PDS, is within the target market of that product.
We have accordingly prepared the table below setting out all the TMDs created by the insurers underwriting products distributed by the Aon group of companies, including Aon Risk Services, Affinity Insurance Brokers and HIAIS. These TMDs relate to Aon Scheme, Facility and Binder products only. Please reach out to your carrier partners for TMDs for open market wordings.
These are broken down by insurer below for your reference.
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The information contained in this document is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider the relevant Product Disclosure Statement (if applicable), the Target Market Determination and full policy terms and conditions available from Aon on request. All representations in this document in relation to the insurance products we arrange are subject to the full terms and conditions of the relevant policy. Please contact us if you have any queries.