Australia’s competition watchdog faces mounting pressure over Insurance Australia Group’s latest takeover bid.
The Motor Trades Association of Australia warned that IAG’s proposed acquisition of RAC Insurance in Western Australia could cement a pattern of consolidation already reshaping the motor insurance market.
The MTAA applauded the Australian Competition and Consumer Commission for flagging potential risks but argued approval would only deepen the problem.
According to the group, the ACCC has already waved through two heavyweight deals this year: IAG’s buyout of RACQ Insurance in Queensland and Allianz’s acquisition of RAA Insurance in South Australia. Three member-based insurers gone in less than 12 months, the MTAA noted, and that doesn’t look random.
“This is not coincidence; it is a pattern,” Rod Camm, MTAA interim executive director, said in a statement.
Trusted member-based insurers are being swallowed up one by one. What’s left is a market dominated by a small number of giant players, and that means higher premiums, less choice, and greater risks for consumers.
Rod Camm, MTAA interim executive director
The group’s submission to the regulator painted these moves as part of a broader industry shift, with IAG and Allianz growing into outsized forces.
The ACCC itself released a “statement of issues” in September outlining a preliminary view that the RAC Insurance takeover may substantially reduce competition across both motor and home insurance in Western Australia.
IAG acknowledged the regulator’s concerns in its own statement, saying it continues to work with the ACCC during the review. A final decision is due by Nov. 27.
The MTAA remains firm in its opposition. In a letter to the commission, it stressed that the concentration trend exacerbates long-standing tension between insurers and repairers.
Fewer competitors, the group argued, means smaller businesses face entrenched power imbalances with little recourse.
The automotive industry plays a crucial role in Australia’s economy. It encompasses businesses involved in selling, servicing, repairing, fueling, and maintaining the country’s fleet of 19.2 mn motor vehicles.
The Motor Trades Association of Australia (MTAA) represents its member associations by educating and informing government and industry about the important role of the automotive sector. It proactively participates in the development of sound public policy on issues affecting or impacting the retail motor trades, small business and consumers.
MTAA represents the Victorian and Tasmanian Automobile Chamber of Commerce, the Motor Trade Association of South Australia and Northern Territory, the Motor Trade Association of Western Australia, and the Motor Trades Association of Queensland.
As a national-level body, MTAA presents a unified voice primarily to the federal government and departments and plays a key role in influencing government policy. The work MTAA undertakes includes identifying and monitoring issues affecting the automotive sector, and taking up appropriate matters with the government.
