The Motor Trades Association of Australia (MTAA) has expressed serious concern following the Australian Competition and Consumer Commission’s (ACCC) approval of Allianz’s acquisition of RAA Insurance Holdings. This is the second major motoring club insurance acquisition to receive approval in recent weeks, raising further alarm over growing consolidation in the sector.
The transaction allows Allianz to purchase RAA Insurance from the Royal Automobile Association of South Australia. It also involves a 20-year exclusive distribution agreement between the two organisations. The move follows the ACCC’s decision in May to approve Insurance Australia Group’s (IAG) acquisition of RACQ Insurance.
MTAA Interim Executive Director Rod Camm said the concentration of market power among a few major insurers was reducing competition and weakening outcomes for consumers and small businesses.
“Australia is seeing a fast-moving consolidation of its insurance sector, with serious consequences for choice, pricing, and accountability,” Mr Camm said. “Less competition means fewer options for consumers and increasing pressure on local repairers.”
MTAA has also pointed to a third deal now underway. IAG has reportedly entered into a 20-year underwriting agreement with RAC WA. While that deal is yet to be reviewed by the ACCC, it continues a trend that is reshaping the insurance landscape.
“These types of deals may retain local branding, but behind the scenes control is shifting to large national players,” Mr Camm said.
“Decisions that once rested with member-focused organisations are now moving further from the communities they serve.”
Given these developments, MTAA has renewed its call for urgent reforms to the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. It is advocating for stronger enforcement powers, clear penalties, and closer regulatory oversight by the ACCC.
“This was a chance to put stronger protections in place. Instead, we are seeing decisions that reinforce market dominance,” Mr Camm said.
“It is essential the Australian Government steps in to protect the long-term interests of motorists and independent repairers.”
MTAA’s submissions to the ACCC regarding the Allianz–RAA and IAG–RACQ acquisitions can be accessed here.
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About MTAA
The Motor Trades Association of Australia (MTAA) is the peak body representing the interests of the automotive retail sector across the nation. Through proactive engagement, MTAA helps shape sound public policy on issues that affect the retail motor trades, small businesses, and consumers.
MTAA’s member associations include:
At the national level, MTAA acts as a unified voice, representing the interests of the automotive sector to the federal government and influencing key policy decisions. Its work includes identifying and addressing issues impacting the sector and advocating for the needs of automotive businesses through ongoing discussions with government.
