Australian Competition and Consumer Commission moves Insurance Australia Group’s proposed RAC Insurance acquisition to a Phase 2 review over Western Australia competition concerns

The Australian Competition and Consumer Commission has issued a Phase 2 Notice for Insurance Australia Group Limited’s proposed acquisition of RAC Insurance, concluding the transaction could substantially lessen competition and requires an in-depth review. The ACCC’s preliminary concerns relate to the supply of motor vehicle insurance and home and contents insurance in Western Australia, and it is also considering potential impacts on smash repair services. RAC Insurance, owned by the Royal Automobile Club of Western Australia, is the market leader in WA for both motor and home and contents insurance, and the acquisition would result in IAG underwriting these products under the RAC brand. IAG previously applied for clearance under the former informal merger regime, but the ACCC decided not to clear the acquisition in December 2025; IAG has re-notified the deal under the formal merger regime that commenced on 1 January 2026. Under the Competition and Consumer Act, a Phase 2 assessment can take up to 90 business days unless extended in specified circumstances. Submissions in response to the Phase 2 Notice are due by 4 May 2026 as the ACCC continues its Phase 2 assessment and has not yet reached a final conclusion.