Insurance partnership information from RAC

The ACCC will introduce a new mandatory merger control regime from 1 January 2026. This brings changes to how ACCC assesses applications.

We still believe the proposed partnership has merit and would deliver enhanced value to members and support our people through access to IAG’s leading insurance capabilities, technology, and expertise. The initial application was made under the previous ACCC regime (pre-2026). That previous regime has now ceased, and options to progress under that regime have closed. This means the proposed partnership must now seek approval under the new regime, which covers transactions to be completed after 1 January 2026, including those reviewed but not cleared by the ACCC under the previous regime.

The first step in this process is IAG’s lodgement of the application with the ACCC under its new regime. From there, we will keep you updated on any developments as appropriate.

This new assessment is expected to take several months. The ACCC process has fixed statutory timeframes of 30 business days for a phase 1 review (an initial assessment) and 90 business days for a phase 2 review (a deeper review if/when more consideration is required.) These timeframes can be extended in some circumstances.

There is no immediate change. RAC and IAG will continue to operate as separate businesses. We will keep our members informed as the process continues.

The agreement has resulted from detailed discussions and was announced to members and the general public on Thursday 15 May 2025.

No. The transaction is primarily focused on home and motor insurance products and excludes insurance products offered by RAC Group entities other than RAC Insurance. 

For example, RAC Travel will continue to sell RAC Travel Insurance, underwritten by their insurance partner Tokio Marine. 

An insurance underwriter is a company that assesses and takes on the risk of insuring people or assets.

When an insurance product is sold by one company but underwritten by another, it means that the underwriting company is responsible for evaluating the risk and providing the financial backing for the policy, while the selling company handles the customer relationship and policy administration. 

This allows the selling company to offer insurance products without bearing the full risk. 

IAG is one of Australia’s leading general insurers. IAG has leading insurance capabilities, a shared ethos and cultural alignment and a clear track record in delivering an excellent member experience and competitive product offering.

Upon completion of the transaction, IAG has the experience to support RAC as we continue to provide competitive insurance, and an excellent claims experience for all our members.

This would enable RAC to continue to invest in and expand our member products and services, our advocacy efforts, and our ongoing community initiatives.

RAC people would gain access to enhanced capabilities and opportunities to enable us to deliver exceptional value to our members.

We would also be well-placed to keep pace with industry advancements and maintain our commitment to excellence.

No. There have been no decisions to make changes to any of our member facing sites as part of this transaction.

There is no immediate change to your current policy.  Members will continue to be supported by our local claims experts and the RAC team. 

At this stage there is no change to your membership tenure.

Yes. You will continue to hold an RAC-branded policy. Once the partnership transition is complete, IAG will be the underwriter.

There are no immediate changes to members having access to the RAC Member Benefits Program as a result of this announcement.

The Australian Competition and Consumer Commission (ACCC) is Australia’s competition regulator. Its role is to protect the interests and safety of consumers, and support fair trading in markets affecting consumers and small business.

Yes, RAC will continue to be based in WA to serve its WA members on all of our products and services, including roadside assistance. In entering this partnership, IAG is making a commitment to retaining a significant local presence in WA, ensuring RAC members have access to local expertise and market-leading contact centres.

RAC and IAG have agreed to form a partnership however this is still subject to regulatory approvals. There are no immediate changes to RAC branded products as a result of this announcement. Your premium is calculated due to factors such as changes in your personal circumstances, your driving record, the value of your insured property, your claims history or market conditions. We can always look at your policy at any point and conduct a health check to make sure we are checking the risk details and coverage to make sure they are correct and you are paying for what you need.

RAC operates a significant number of businesses outside of Insurance including our membership, breakdown products, travel, auto-services, batteries, tyres, parks & resorts and Finance. These remain unchanged.