A retail client is a client who is treated as retail for a particular financial product or financial service under the Corporations Act.

Retail status is important because additional financial services obligations can apply.

How does retail status work for general insurance? #

For general insurance, a client can be treated as retail where:

• The client is an individual or qualifying small business, and
• The relevant insurance falls within one of the prescribed general insurance categories.

These categories include certain motor, home, contents, sickness and accident, travel and personal property insurance products.

Is every individual automatically a retail client for every insurance policy? #

No.

The type of general insurance product is also relevant.

An individual purchasing a commercial insurance product does not necessarily fall within the retail general insurance provisions simply because they are an individual.

Can a business be a retail client? #

Yes.

A qualifying small business can be treated as a retail client for certain prescribed general insurance products.

Retail-client status can affect regulatory requirements relating to disclosure, advice, documentation, complaints and other consumer protections.

You can also read What is a wholesale client in general insurance?.

Contact our team if you are unsure how you are classified for a particular insurance product.