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

Regulator Flags Risks to WA Insurance Market Amid IAG-RAC Deal

ACCC Raises Competition Concerns Over IAG's Proposed Acquisition of RAC Insurance?w=400

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The Australian Competition and Consumer Commission (ACCC) has expressed concerns regarding Insurance Australia Group's (IAG) proposed A$1.35 billion acquisition of the Royal Automobile Club of Western Australia's (RAC) insurance business.
The regulator warns that the deal could reduce competition in Western Australia's motor and home insurance markets, potentially leading to increased premiums and reduced service quality.

The ACCC is also concerned that IAG might limit competitors' access to high-quality and cost-effective repair services, thereby raising rivals' operational costs. IAG, based in Sydney, has stated that it will continue to engage with the ACCC to address these concerns. The acquisition, announced in May, is part of IAG's strategy to expand its footprint in the region.

For consumers, this development highlights the importance of a competitive insurance market in ensuring fair pricing and quality services. It's advisable for policyholders to stay informed about such industry changes and consider multiple providers when seeking insurance coverage.

Published:Monday, 29th Sep 2025
Source: Paige Estritori

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

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Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.