Home / Business and Economy / ACCC Blocks IAG's $1.35bn RAC WA Insurance Takeover
ACCC Blocks IAG's $1.35bn RAC WA Insurance Takeover
13 Dec, 2025
Summary
- ACCC rejects IAG's $1.35bn acquisition of RAC WA Insurance.
- Concerns over competition in WA's motor and home insurance markets.
- Deal could lead to higher premiums and reduced product quality.
The Australian Competition and Consumer Commission (ACCC) has halted Insurance Australia Group's (IAG) proposed $1.35bn acquisition of RAC Insurance. The decision stems from concerns that the merger would substantially lessen competition for motor vehicle and home insurance in Western Australia.
The ACCC's review concluded that the deal, which included a 20-year distribution and licensing agreement, would significantly reduce competition. It was projected to give IAG a dominant market share, potentially leading to higher premiums and a decline in the quality of insurance products offered to Western Australians.
Despite IAG's commitment to maintaining local operations and enhancing member experiences, the ACCC found that other market players were unlikely to offset the competitive impact. IAG plans to seek further assessment under Australia's new mandatory merger control regime, which takes effect in January 2026.
