ACCC blocks IAG–RAC strategic alliance

The Australian Competition and Consumer Commission (ACCC) has opposed IAG proposed strategic alliance with the Royal Automobile Club of Western Australia (RAC), which aimed to provide general insurance products and services to RAC members and Western Australians.

IAG said it will lodge a new application for assessment of the alliance under Australia’s mandatory merger control regime, set to take effect on January 1, 2026.

The proposed alliance would have combined IAG’s national scale, technology capabilities, and capital strength with RAC’s local presence, with a focus on delivering competitive insurance products, enhancing the member experience, and supporting local communities in Western Australia.

IAG and RAC said they remain committed to working together and to delivering accessible insurance solutions for Western Australians as the regulatory process continues.