ACCC ruling raises alarm over insurance sector consolidation

The Motor Trades Association of Australia (MTAA) has raised fresh concerns about growing consolidation in the insurance sector following the Australian Competition and Consumer Commission’s (ACCC) approval of Allianz’s acquisition of RAA Insurance Holdings.

This latest decision follows the ACCC’s earlier approval in May of Insurance Australia Group’s (IAG) acquisition of RACQ Insurance, marking the second major motoring club insurance deal to be cleared in recent weeks.

The Allianz transaction includes the purchase of RAA Insurance from the Royal Automobile Association of South Australia and a 20-year exclusive distribution agreement between the two organisations.

MTAA interim executive director Rod Camm says these approvals are reshaping the insurance market in ways that threaten competition, reduce consumer choice, and create pressure for independent automotive businesses.

“Australia is seeing a fast-moving consolidation of its insurance sector, with serious consequences for choice, pricing, and accountability,” Camm said.

“Less competition means fewer options for consumers and increasing pressure on local repairers.”

The MTAA also drew attention to a third emerging deal, with IAG reportedly entering a 20-year underwriting agreement with RAC WA. That transaction is yet to be reviewed by the ACCC but follows the same pattern of extended control by national insurers over formerly member-based organisations.

“These types of deals may retain local branding, but behind the scenes control is shifting to large national players,” Camm said.

“Decisions that once rested with member-focused organisations are now moving further from the communities they serve.”

The MTAA is calling for urgent reforms to the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. It is advocating for stronger enforcement powers, clearer penalties, and enhanced oversight by the ACCC to better protect consumers and independent businesses.

“This was a chance to put stronger protections in place. Instead, we are seeing decisions that reinforce market dominance,” Camm said.

“It is essential the Australian Government steps in to protect the long-term interests of motorists and independent repairers.”

MTAA submissions to the ACCC regarding the Allianz–RAA and IAG–RACQ acquisitions are available online.