The term retail insurance is commonly used for classes of general insurance that can be provided to a client on a retail basis under Australian financial services law.

The legal position depends on both the insurance product and the person or business acquiring it.

Which types of general insurance can be retail? #

The Corporations Act and Regulations identify particular classes of general insurance for the retail-client rules.

These include specified forms of insurance such as:

• Motor vehicle insurance
• Home building insurance
• Home contents insurance
• Sickness and accident insurance
• Consumer credit insurance
• Travel insurance
• Personal and domestic property insurance
• Certain other prescribed insurance

Whether the client is treated as retail also depends on who is acquiring the product.

Can a small business be a retail client? #

Yes.

A small business can be treated as a retail client when acquiring one of the relevant prescribed general insurance products.

This is why “retail” should not simply be taken to mean personal insurance and “wholesale” should not simply be taken to mean business insurance.

Retail-client status can bring additional regulatory protections and disclosure requirements under financial services law. The precise obligations depend on the financial service being provided.

You can also read What does ‘wholesale’ mean in general insurance?.

Contact our team if you have questions about whether an insurance product is being treated as retail or wholesale.