ACCC Raises Concerns Over IAG's Proposed Acquisition of RAC Insurance

Potential Impact on Competition in Western Australia's Insurance Market Under Review

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Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), has raised concerns over Insurance Australia Group’s (IAG) proposed A$1.35 billion (US$877 million) acquisition of the Royal Automobile Club of Western Australia’s (RAC) insurance business.

The ACCC warns that this deal could reduce competition in Western Australia's motor and home insurance markets.

Specifically, the watchdog fears it may lead to higher premiums, reduced service quality, and potentially restrict competitors’ access to affordable and efficient vehicle repair services.

IAG plans to underwrite insurance under the RAC brand as part of its broader expansion in Western Australia. IAG responded by acknowledging the ACCC's concerns and promised continued engagement. RAC, based in Perth and founded in 1905, provides services including insurance, roadside assistance, and travel. The deal was initially announced by IAG in May.

For consumers, this scrutiny highlights the importance of maintaining a competitive insurance market to ensure fair pricing and quality services. It's crucial for policyholders to stay informed about such developments, as they can have direct implications on insurance options and costs.

Published:Thursday, 18th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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