Travel Insurance Online :: News
SHARE

Share this news item!

ACCC Scrutinises IAG's Proposed Acquisition of RAC Insurance

Potential Impact on Competition in Western Australia's Insurance Sector

ACCC Scrutinises IAG's Proposed Acquisition of RAC Insurance?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Competition and Consumer Commission (ACCC) has expressed concerns regarding Insurance Australia Group's (IAG) proposed acquisition of the Royal Automobile Club of Western Australia's (RAC) insurance business.
The deal, valued at A$1.35 billion (approximately $877 million), aims to expand IAG's presence in Western Australia.
However, the ACCC warns that this consolidation could diminish competition in the region's motor and home insurance sectors.

According to the ACCC, the acquisition would result in IAG underwriting motor and home insurance under the RAC brand, potentially leading to increased premiums and reduced service quality for consumers. The regulator also highlighted the possibility of IAG limiting competitors' access to quality and cost-effective repair services, which could raise operational costs for rival insurers.

IAG has acknowledged the ACCC's concerns and stated its intention to engage with the regulator to address these issues. The Sydney-based insurer announced the acquisition in May as part of its strategy to strengthen its footprint in Western Australia. RAC, established in 1905 and headquartered in Perth, offers a range of services, including insurance, roadside assistance, and travel.

For tradespeople in Western Australia, this development is particularly significant. A reduction in competition within the insurance market could lead to higher premiums and fewer options for tailored coverage. It's essential for tradies to stay informed about these changes and consider how they might impact their insurance needs and costs.

As the situation unfolds, tradespeople should review their current insurance policies and explore alternative providers to ensure they continue to receive comprehensive coverage at competitive rates. Engaging with insurance brokers who understand the specific needs of tradespeople can also provide valuable insights and assistance in navigating potential market changes.

Published:Sunday, 12th Oct 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Europ Assistance Australia Now Licensed to Underwrite Travel Insurance
Europ Assistance Australia Now Licensed to Underwrite Travel Insurance
05 Apr 2026: Paige Estritori
Europ Assistance Australia (EAA) has achieved a significant milestone by obtaining a general insurer licence, enabling the company to underwrite its own travel insurance products. This development underscores EAA's dedication to the Australian market and its travellers. - read more
Navigating Travel Insurance Coverage During Middle East Unrest
Navigating Travel Insurance Coverage During Middle East Unrest
05 Apr 2026: Paige Estritori
Recent conflicts in the Middle East have led to significant disruptions in air travel, prompting Australian travellers to reassess their travel insurance coverage. Understanding how such policies respond to war-related events is crucial for those planning trips through affected regions. - read more
Australian Travel Insurers Extend Support During Middle East Conflict
Australian Travel Insurers Extend Support During Middle East Conflict
28 Mar 2026: Paige Estritori
In response to the escalating conflict in the Middle East, Australian travel insurers have mobilised additional resources to support affected travellers. The Insurance Council of Australia (ICA) announced that insurers are providing dedicated 24/7 assistance, coordinating medical care, and prioritising support for those in impacted regions. - read more
Rising Domestic Travel Claims Reveal Insurance Coverage Gap
Rising Domestic Travel Claims Reveal Insurance Coverage Gap
28 Mar 2026: Paige Estritori
Southern Cross Travel Insurance (SCTI) has reported a notable gap between Australians' attitudes towards domestic travel insurance and the claims being paid. In the first eight and a half months of 2025, SCTI settled over $240,000 in claims for local and interstate trips. Despite this, only about 41% of Australians consider travel insurance a high priority for domestic trips, compared to 76% for international travel. - read more
RACV Advises Travellers to Review Insurance Amid Rising Flight Cancellations
RACV Advises Travellers to Review Insurance Amid Rising Flight Cancellations
28 Mar 2026: Paige Estritori
Australian travellers are facing ongoing flight disruptions, with cancellation rates climbing above long-term averages. According to the latest data from the Bureau of Infrastructure, Transport and Regional Economics (BITRE), the national flight cancellation rate reached 2.6% in February 2025, exceeding the long-term average of 2.2%. On-time performance for both arrivals and departures also fell below historical benchmarks. - read more


Travel Insurance Articles

Your Complete Guide to Understanding Travel Insurance Coverage
Your Complete Guide to Understanding Travel Insurance Coverage
Imagine you're on a dream holiday in Europe and suddenly fall ill. Without travel insurance, this unforeseen mishap could turn your trip into a financial nightmare. Unexpected travel mishaps can occur, from medical emergencies to lost luggage, and having travel insurance can provide a safety net. - read more
A Step-by-Step Guide to Making Travel Insurance Claims Hassle-Free
A Step-by-Step Guide to Making Travel Insurance Claims Hassle-Free
Travel insurance is a crucial aspect of planning a trip, especially for Australian travelers who venture far and wide. With the vast array of destinations Australians frequent, from exploring the natural wonders of the Outback to adventuring abroad, having a safety net in place can provide peace of mind. - read more
The Savvy Traveller's Checklist for Affordable Travel Insurance
The Savvy Traveller's Checklist for Affordable Travel Insurance
Travel insurance is an indispensable component for any savvy traveller from Australia, playing a protective role in a myriad of situations that may occur away from home. Whether it's encountering flight delays, requiring medical assistance, or facing luggage theft, having a solid travel insurance policy can convert potential nightmares into manageable inconveniences. Yet, despite its importance, the process of finding a policy that won't break the bank is increasingly challenging. - read more
Maximising Your Travel Budget: Tips for Australian Families
Maximising Your Travel Budget: Tips for Australian Families
Travel plays a significant role in family bonding. There's nothing quite like exploring new places together, creating lasting memories, and experiencing adventures that will be talked about for years to come. - read more
From Flight Cancellations to Lost Luggage: Why Travel Insurance is Crucial
From Flight Cancellations to Lost Luggage: Why Travel Insurance is Crucial
Picture this: You're all set for your dream vacation. Suitcases packed, tickets in hand, and the excitement building. But then, an unexpected disappointment hits. Your flight is cancelled. Suddenly, your well-laid plans are thrown into disarray. - read more

Knowledgebase
Claim:
A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.