ACCC Scrutinizes Major Motor Insurance Mergers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Competition and Consumer Commission (ACCC) has opened a detailed examination into significant mergers in the motor insurance market.

The acquisitions under review include Insurance Australia Group's (IAG) endeavor to acquire RACQ Insurance and Allianz Australia's agreement to purchase RAA Insurance.

Stakeholders are urged to present their opinions on these mergers by February 14. The ACCC has scheduled to either finalize decisions or release public statements indicating any concerns by April 24.

Industry experts predict the ACCC’s primary focus will be on IAG’s strategic move to bolster its position in Queensland, especially given RACQ's established presence as one of the state's front-runners in personal insurance products.

According to the ACCC, “IAG and RACQI both provide personal lines general insurance, including home, contents and motor vehicle insurance, and acquire ancillary repair services, including smash repair services, windscreen repair and replacement services, and building repair services.”

The primary objective of the inquiry is to assess the competitive dynamics between the involved parties, measure the influence of other service providers on the proposed new entity, and understand the implications for pricing and service quality in personal insurance lines. Additionally, the inquiry will delve into how IAG's enhanced scale might impact its dealings with supplementary service suppliers.

For the Allianz and RAA agreement, there are concerns about market overlap in key insurance sectors, including home, contents, and car insurance. The ACCC has posed related inquiries for this deal as well.

IAG's proposed $855 million acquisition aims to secure a 90% stake in RACQ's insurance segment, coupled with a potential to purchase the remaining 10% in the coming years. A long-term distribution relationship spanning 25 years is also part of the agreement.

Almost concurrently, Allianz Australia announced its $642 million commitment to acquire RAA's insurance business, which similarly involves a lengthy distribution partnership lasting 20 years.

It is noteworthy that both acquisitions exclude the roadside assistance services and other membership-based activities that RACQ and RAA are widely recognized for.

Inquiries from the ACCC also pertain to whether Queensland and South Australia should be perceived as distinct geographic markets and if the insurers are recognized for competitive pricing, innovation, or aggressive market strategies.

The ACCC is also collecting data on market shares by sectors, upcoming or recent market developments, and entry hurdles for new players.

In line with these developments, letters seeking feedback have been dispatched regarding each proposed acquisition. Detailed information and queries originate from the initial discussions, as outlined in the source content.

Published:Wednesday, 5th Feb 2025
Source: Paige Estritori

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

Share this news item:

Insurance News

ICA's Strategic Plan to Combat Escalating Motor Insurance Costs

14 Nov 2025: Paige Estritori

The Insurance Council of Australia (ICA) has unveiled a comprehensive report titled 'Motor Insurance Policy Paper - A Roadmap for Reducing Rising Premiums,' addressing the significant 42% increase in comprehensive motor insurance premiums since 2019. This surge has brought the average annual premium to $1,052 in 2024, prompting the need for coordinated action to alleviate the financial burden on consumers. - read more

Inattention and Speed: Key Contributors to Major Truck Accidents in Australia

14 Nov 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its 2025 Major Incident Investigation Report, shedding light on the primary human factors contributing to significant truck crashes across Australia. The findings emphasise the critical roles of inattention, distraction, and inappropriate speed in these incidents, underscoring the necessity for targeted safety interventions within the transport industry. - read more

EQT's Bold Move: A $3.41 Billion Bid for AUB Group

14 Nov 2025: Paige Estritori

In a significant development within the Australian insurance sector, Swedish private equity firm EQT has extended a takeover offer for AUB Group, valuing the insurance broking company at A$5.25 billion (US$3.41 billion). This proposal includes a price of A$45 per share, representing a 25.1% premium over AUB's last closing price. Following an earlier bid of A$43 per share, AUB has granted EQT exclusive access to its financial records for six weeks starting October 8 under a confidentiality agreement. - read more

Australian Insurers' Profits Soar to $6.1 Billion Amid Rising Premiums

14 Nov 2025: Paige Estritori

Australia's insurance industry has reported an annual after-tax profit of $6.1 billion in 2024, according to KPMG's annual review. This figure is three times higher than the five-year average of $2 billion. The substantial profit increase is attributed to significant premium hikes and a year with fewer severe weather events. - read more

Allianz Australia Penalised $16.8 Million for Misleading Conduct

14 Nov 2025: Paige Estritori

In a significant regulatory action, Allianz Australia and its subsidiary AWP Australia have been fined $16.8 million for making false and misleading statements. The Commonwealth Director of Public Prosecutions imposed the fines following an investigation and referral by the Australian Securities and Investments Commission (ASIC). - read more