ACCC Blocks IAG Acquisition of RAC Insurance

The Australian Competition and Consumer Commission blocked the proposed acquisition of RAC Insurance by Insurance Australia Group on Wednesday. The regulator determined that the merger would substantially lessen competition within the motor and home insurance markets of Western Australia.

An ACCC review found the deal would have granted Insurance Australia Group a 55% to 65% share of the state's motor insurance market and a 50% to 60% share of the home and contents insurance market. The commission concluded that other competing insurers would not provide sufficient pressure to offset the loss of competition between the two companies, which currently act as effective competitors.

Insurance Australia Group first sought clearance for the deal in 2025 and formally notified the acquisition under Australia's merger regime in January 2026. ACCC Chair Gina Cass-Gottlieb stated that the acquisition would combine two large insurers, resulting in a substantial increase in market share and concentration.