The ACCC will not oppose Insurance Australia Group Ltd's A$855 million acquisition of rival insurer RACQ, citing sufficient competition remaining in the home, contents, and motor insurance markets. The regulator noted RACQ had not been a strong competitor since 2019 and did not significantly differ on price or coverage.
“We’re excited by the opportunity to partner with RACQ to provide our leading insurance products, services and support to RACQ members, partners and people across Queensland,” IAG Managing Director and CEO Nick Hawkins said.
“As we outlined when we announced the strategic alliance in November last year, RACQ will maintain brand and customer relationships, while leveraging IAG’s scale, financial strength, best-in- class technology for claims, policies and pricing, customer orientated claims experience and
underwriting expertise.”
RACQ CEO David Carter said: “This is a great first step in the regulatory process and recognises the benefits that would come from the two organisations working together as part of a 25-year strategic partnership agreement.
“We are just as confident today as we were when we announced the partnership, in the benefits that will come from our two organisations working together.”