• IAG's proposed acquisition of RAC Insurance in WA could substantially lessen competition
• Acquisition would combine two of the biggest insurers in WA
• ACCC is also considering impact on smash repair services

The ACCC has decided that Insurance Australia Group Limited's (IAG) proposed acquisition of RAC Insurance (RACI) could substantially lessen competition and requires an in-depth Phase 2 assessment. RACI is owned by the Royal Automobile Club of Western Australia (RAC). IAG and RACI both supply motor insurance and home and contents insurance in WA, and the acquisition would result in IAG underwriting these products under the RAC brand. The ACCC considers the acquisition could substantially lessen competition in both the supply of motor vehicle insurance and the supply of home and contents insurance in Western Australia. The ACCC is also considering the impact of the acquisition in relation to smash repair services. The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2, inviting submissions in response to its Phase 2 Notice by 4 May 2026.