Watchdog again blocks sale of RAC WA insurance arm to east-coast giant

The Australian Competition and Consumer Commission (ACCC) has again blocked the sale of RAC WA's insurance arm to IAG, an east-coast-based insurer based in Sydney. The ACCC cited concerns that the merger would reduce competition in Western Australia’s insurance market, potentially leading to higher premiums for consumers. Despite this decision, RAC maintains its stance that members would be better off under a national insurer, arguing it would "strengthen RAC's ability to respond to a changing insurance landscape" and help mitigate risks currently shouldered by RAC alone. IAG now plans to submit a public benefit application to the ACCC, which will evaluate whether any public benefits from the acquisition outweigh potential detriments.