What’s happening?
- In May, RAC announced its intention to enter into a 20-year general insurance partnership with IAG, which would see IAG acquire and manage 100% of RAC’s insurance underwriting business as part of the proposed partnership.
- On 4 September 2025, the Australian Competition and Consumer Commission (ACCC) released a Statement of Issues about RAC’s proposed partnership with IAG, outlining the ACCC’s preliminary views and areas where it would like further information. This is a normal step in the review process. It is not a final decision.
What happens next?
- We will continue to work cooperatively with the ACCC to respond to the questions raised.
- In addition to the ACCC review, there are other steps that need to be taken before the partnership commences. RAC will continue to keep members updated as the process continues.
What you need to know
- No immediate changes to your policy. There is no impact to our members or their policies - everything remains unchanged.
- No changes to active claims. There are no changes to any claims you are currently working through with RAC.
- RAC will still handle claims in WA. Should the partnership progress, there will still be a significant claims presence in WA
Should the partnership proceed, we believe it would offer access to even stronger products, service innovations and value - but for now, nothing changes for our members.
Why is RAC doing this?
- Firstly, to be able to better serve our members. We want to continue serving our members and the WA community. This is a move to position RAC for continued success for decades to come.
- Secondly, to adapt to the evolving regulatory environment. Over the past several years, RAC’s Insurance business has been responding to an increasingly complex regulatory environment, higher claims volumes and expenses, and rising reinsurance costs, along with a requirement to hold larger capital reserves for claims and natural disasters.
Why IAG?
- Access to insurance capabilities. IAG is one of Australia’s leading general insurers. IAG has the experience to support RAC in the supply of competitive insurance, and an excellent claims experience for all our members.
- Continue service excellence. IAG brings industry expertise and has a clear track record in delivering an excellent member experience, with this partnership allowing us, post-completion, to continue providing competitive insurance products and an excellent claims experience.
- Investment in the WA community. We can continue to invest in and expand our RAC member products and services, advocacy efforts and community initiatives.
