• ACCC will not oppose IAG's proposed acquisition of RACQ Insurance
• Alternative insurance providers will continue to provide competition
• RACQ Insurance has been losing market share and faces challenges

The ACCC has announced that it will not oppose Insurance Australia Group Limited's (IAG) proposed acquisition of RACQ Insurance Limited (RACQI). IAG and RACQI both supply general insurance products, including home and contents insurance and motor insurance, predominantly in Queensland. The ACCC's review considered the impact of the proposed acquisition on the supply of these insurance products, focusing on the level of competition provided by other existing insurance providers, RACQI's competitiveness, and the likely impact on insurance prices, service offering, and coverage. The ACCC found that alternative suppliers of home and contents insurance and motor insurance, including market leaders and newer entrants, will continue to provide a competitive constraint on IAG after the acquisition. The ACCC's investigation also found that RACQI has not been a particularly vigorous competitor in recent times and has been losing market share since 2019. The ACCC noted that RACQI faces material challenges in continuing to provide competitive insurance due to serving areas of higher natural hazard risk and limited access to capital as a mutual organisation. The ACCC also considered the impact of the proposed acquisition on markets for the acquisition of smash repair services, windscreen repair and replacement services, and building repair services, and found that the proposed acquisition is unlikely to substantially lessen competition in these markets.