Allianz Australia has received regulatory clearance from the Australian Competition and Consumer Commission (ACCC) to acquire RAA Insurance (RAAI), the personal insurance division of the Royal Automobile Association of South Australia.
The approval includes a 20-year exclusive distribution arrangement between the two entities.
The ACCC's decision follows a review of the potential competitive impacts of the acquisition within the South Australian market for home, contents, and motor insurance.
“Our investigation focused on the closeness of competition between RAAI and Allianz and the extent to which other insurers are competing effectively to supply insurance to South Australians,” said ACCC Commissioner Philip Williams.
The regulator also evaluated whether RAAI would remain a strong competitor in the absence of a transaction.
“The likely impact of the acquisition on insurance prices, coverage, and service offerings were all carefully considered,” Williams said.
According to the ACCC, the presence of national insurers such as Suncorp and Insurance Australia Group (IAG) – both of which operate significant brands like AAMI and NRMA Insurance – along with mid-sized providers like Auto & General and Youi, is expected to continue shaping pricing and product competition in the state.
“While RAAI has a strong brand reputation associated with its motoring club and membership offering, we found that competition in relation to price and coverage in South Australia is being driven predominantly by other insurers, including Suncorp through its AAMI brand, IAG, Auto & General, and Youi,” Williams said.
The commission also acknowledged the broader pressures on the general insurance sector, including increased claims volatility linked to severe weather and elevated reinsurance costs. It found that these factors have affected RAAI’s operating outlook, potentially limiting its future competitiveness.
The Motor Trades Association of Australia (MTAA) has raised concerns over what it describes as accelerating consolidation in the insurance industry.
Allianz’s acquisition of RAAI follows the ACCC’s recent approval of IAG’s acquisition of RACQ Insurance in Queensland, marking two major motoring club-related deals within weeks.
Rod Camm (pictured), interim executive director of MTAA, said these developments raise structural concerns for the broader insurance market.
“Australia is seeing a fast-moving consolidation of its insurance sector, with serious consequences for choice, pricing, and accountability,” he said. “Less competition means fewer options for consumers and increasing pressure on local repairers.”
MTAA has reiterated its support for reform of the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. The group is pushing for stronger regulatory oversight and clearer enforcement tools to address power imbalances between insurers and repairers.
