MTA WA Welcomes ACCC Decision to Further Review IAG–RAC Insurance Proposal
Media Releases
The Motor Trade Association of Western Australia (MTA WA) welcomes the Australian Competition and Consumer Commission’s (ACCC) decision to undertake an in-depth Phase 2 assessment of Insurance Australia Group Limited’s (IAG) proposed acquisition of RAC Insurance.
MTA WA appreciates the ACCC’s recognition that the proposed acquisition raises significant competition concerns in Western Australia, particularly in the supply of motor vehicle insurance and respects its decision to take additional time to thoroughly assess the potential impacts.
The Association notes the ACCC’s preliminary view that the transaction could substantially lessen competition, reflecting concerns consistently raised by MTA WA and its members throughout the review process.
“The ACCC’s decision to proceed to a Phase 2 assessment highlights the scale and significance of this proposed acquisition,” said MTA WA Group Chief Executive Officer, Neil Le Febvre.
“MTA WA has maintained that further consolidation in the Western Australian insurance market has the potential to reduce consumer choice and place increased pressure on independent automotive repair businesses.”
MTA WA members have expressed concern that increased market concentration could impact competition not only in insurance markets, but also across the broader automotive repair sector, including smash repair services, which the ACCC has indicated it is also considering as part of its review.
“Independent automotive repairers play a critical role in delivering safe, timely and high-quality vehicle repairs across metropolitan and regional Western Australia,” Mr Le Febvre said.
“A competitive and balanced insurance market is essential to ensuring fair outcomes for consumers, as well as supporting repairers to operate on commercially sustainable terms.”
MTA WA supports regulatory processes that carefully consider market dynamics, promote transparency, and maintain strong competition across both the insurance and automotive repair sectors.
The Association remains committed to constructive engagement with insurers, regulators and other stakeholders as the ACCC continues its Phase 2 assessment.