The Motor Trades Association of Australia (MTAA) has expressed deep disappointment at the decision by the Australian Competition and Consumer Commission (ACCC) to approve Insurance Australia Group’s (IAG) acquisition of RACQ’s insurance operations.

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MTAA Interim Executive Director Rod Camm slammed the approval as a dangerous step toward the concentration of Australia's insurance sector in the hands of a few dominant players, warning of dire consequences for consumers and businesses alike.

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“This is an assault on competition,” Mr Camm said. “By handing over yet another iconic motoring brand to a corporate behemoth, the ACCC has effectively adversely altered structure in the Australian insurance sector. This decision will turbo charge market dominance, and leave Australians with fewer choices and higher costs.”

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Earlier this month, IAG announced a 20-year underwriting agreement with RAC WA, a deal still subject to ACCC approval, which MTAA has strongly denounced as misleading for consumers and catastrophic for independent repairers.

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"Consumers may continue to see trusted local brands, but the reality behind the scenes is a corporate takeover," Mr Camm said. "These arrangements ruthlessly strip decision-making away from locally accountable institutions and hand control to national corporate agendas that prioritise profits over people."

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The MTAA is sounding the alarm on the consequences of this unchecked consolidation, predicting:

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• Crippling pressure on independent and family-run repairers, many of whom will struggle to survive
• Eroded service quality and vanishing consumer choice, as the industry becomes homogenised under corporate control

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MTAA has also renewed its call for reforms to the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct, including enforceable penalties and stronger ACCC oversight.

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“This is a missed opportunity to safeguard choice and accountability in Australia’s insurance landscape,” Mr Camm said. “We urge the Government to act now to protect the long-term interests of both motorists and repairers.”

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MTAA’s full submission to the ACCC on IAG’s proposed acquisition of RACQ and Allianz’s proposed acquisition of RAA can be accessed here.

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ENDS

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Media Contact

Andrew Molloy
Manager, Marketing, Media & Communications, VACC
P: 0457 188 375
E: amolloy@vacc.com.au

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