Overview
- The ACCC found the merger would leave IAG with about 55–65% of WA motor insurance and 50–60% of home and contents cover.
- The regulator said IAG could increase premiums and reduce product quality, with likely flow-on effects for other insurers.
- RAC and IAG said they will seek reassessment under a new mandatory merger-control regime starting January 1.
- The proposed $1.35 billion deal includes the sale of RAC Insurance and a 20-year distribution and licensing agreement, while RAC would keep roadside assistance.
- RAC’s insurance arm generated about $290 million in net income last financial year, and IAG has pledged a significant WA-based claims presence.