The Motor Trades Association of Australia (MTAA) and its body repair committee, the Australian Motor Body Repairers Association (AMBRA), are urging the Australian Competition and Consumer Commission (ACCC) to reject two proposed insurance industry acquisitions and implement stronger regulations to ensure fairness and transparency in the motor vehicle insurance and repair sector.
As the ACCC reviews Allianz’s acquisition of RAA Insurance and Insurance Australia Group’s acquisition of RACQ, it is seeking industry feedback on whether these acquisitions will substantially lessen competition. MTAA strongly opposes these acquisitions, citing significant concerns over market power abuse and the negative impact on businesses, consumers, and the broader insurance industry.
A more consolidated insurance market will lead to higher costs, reduced choices, and lower service quality for motorists. While repairers will face immediate pressure, the long-term effects will include rising premiums and limited access to high-quality repairs. These acquisitions offer no tangible benefits to the industry or consumers but will further entrench insurer dominance.
MTAA also highlights the inadequacy of current state-based regulations, which lack consistency and meaningful penalties for non-compliance. South Australia is the only state with penalties, yet the maximum fine of $50,000 remains too low to deter unfair practices by large insurers. Without stronger nationwide regulations, further consolidation will only deepen existing imbalances, disadvantaging repairers and motorists alike.
MTAA calls on the ACCC to reject these acquisitions and introduce a robust regulatory framework by strengthening the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct to protect the industry and ensure a fair, competitive market for all stakeholders.
"Without stronger oversight, insurers will continue to dictate repair practices, creating an unfair playing field that hurts small businesses and limits consumer choice. The ACCC has a critical role to play in ensuring a fair, transparent, and competitive insurance and repair industry,” said Matt Hobbs, CEO of MTAA.
“A nationally enforced Code of Conduct with real penalties is essential to holding insurers accountable and protecting the livelihoods of thousands of repairers across Australia."
