The Motor Trade Association SA/NT (MTA) has expressed deep disappointment in today’s decision by the Australian Competition & Consumer Commission (ACCC) to allow the acquisition of RAA Insurance by Allianz Australia.
MTA CEO Darrell Jacobs said that South Australian motorists have awoken to a less competitive insurance sector entirely run by corporate giants. “This is a dark day for South Australian motorists and small businesses, with local member motor-club insurance on death’s door,” Mr Jacobs said.
The ACCC’s approval for the acquisition of RAA Insurance by Allianz follows its approval of the acquisition of RACQ’s insurance arm by Insurance Australia Group (IAG) in Queensland.
Mr Jacobs continued, “Allianz is using South Australian trust in the RAA brand, while pulling the wool over their eyes. With this decision, South Australian motorists will get stung.”
While considering the decision to allow Allianz to use the RAA local branding,
Mr Jacobs reflected, “RAA Insurance is now as local as lederhosen.”
Mr Jacobs said the decision concentrates the South Australian motor insurance market into the hands of a few multi-national and publicly listed insurers, warning that the combined market share of RAA Insurance and Allianz would have long term consequences for consumers.
“RAA Insurance has for a long time held the interests of its members first, particularly during the claims process,” Mr Jacobs said. “But local call centres are cold comfort for policy and underwriting decisions made overseas.”
Mr Jacobs said, “The ability for motorists to make real choice of repair decisions is likely to be the first of many changes before us.”
The MTA is sounding the alarm on the consequences of this unchecked consolidation, predicting:
- Crippling pressure on independent and family-run repairers, many of whom will struggle to survive.
- Eroded service quality and vanishing consumer choice, as the industry becomes homogenised under corporate control.
“Insurers need to work with automotive repairers and ensure customers get their choice of repairer without taking them for a ride – often kilometres from home.”
Mr Jacobs emphasised.
The MTA will continue to support the automotive industry, including local collision repairers, in this new insurance landscape in South Australia.
ENDS
