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.
