A Target Market Determination (TMD) is a document that financial product issuers, including insurance companies, are required to create under Australian law. It's designed to help ensure that financial products are marketed and sold to the right consumers.

In simpler terms, a TMD outlines:

1. Who the product is suitable for: This is known as the 'target market,' which describes the specific group of people for whom the product is intended. For example, a motor vehicle insurance policy might target drivers who use their car for personal use and have a good driving record.
   

2. How the product should be distributed: This includes the channels through which the product can be sold and any conditions or restrictions on its sale. For example, it might specify that a certain motor vehicle insurance policy should only be sold through licensed insurance agents.
   

3. How the product will be monitored: The TMD also details how the issuer will keep an eye on the product's performance and its alignment with the target market, ensuring it remains appropriate for its intended consumers.

The purpose of a TMD is to protect consumers by making sure that financial products are not being sold to people for whom they are not suitable. For more information on Target Market Determinations, you can visit the Australian Securities and Investments Commission (ASIC) website at this link.

If you have any questions in relation to TMD's or if you require further information, please do not hesitate to contact your client service team.