RAC WA Sells Its Insurance Underwriting Business to Sydney-Based Multinational IAG

Gdsamp on 15/05/2025 - 12:56
Last edited 15/05/2025 - 13:08 by 1 other user

RAC WA sells its insurance underwriting business to Sydney-based multinational IAG

Western Australia-based insurer RACWA will sell its entire insurance operations to a Sydney-based company, in a deal worth $1.3 billion.
The 20-year deal will see RACWA — which has been WA owned for more than 20 years — hand over its insurance arm to multinational insurance company Insurance Australia Group (IAG).
IAG will pay $400 million for that acquisition and $950 million will be spent on a "distribution and brand licensing agreement".

Very bearish signal for RAC WA customers
Have found them to be cheaper than competitors for comparable car insurance cover

https://rac.com.au/about-rac/media/media-releases/may-2025/r…
https://www.iag.com.au/newsroom/company/iag-enters-strategic…

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Comments

  • Protractor on 15/05/2025 - 13:34

    You think after sale it will stay the same?

    Sydney based Is that code for foreign owned?

    • freefall101 on 15/05/2025 - 13:40

      It's code for being Sydney based.

      It's IAG, the "A" stands for "Australia" and it's listed on the ASX.

      • Protractor on 15/05/2025 - 13:44
        -1

        OK.Thanks. It's getting smokier in the insurance world. Comminsure was heaved by Hollards. So anything could happen in that space,especially given all the hikes due to extreme weather events.It won't be going downwards anytime soon.

        • freefall101 on 15/05/2025 - 13:51

          2 seconds on Google would have answered your question instead of assuming the worst.

          And if you go to the Commbank website for insurance it mentions the name Hollard 13 times on the page. They would have sent out a bajillion communications to those with insurance about the change. It's not exactly smoke and mirrors going on here.

  • Hamish125 on 15/05/2025 - 13:49
    +4

    I think one change is that IAG will be purely focused on profits, RACWA billed itself as a member owned organisation - profits were reinvested to benefit the members. Most likely what will happen will be insurance costs will go up, and claims will be more of a hassle.

    I always found RACWA a lot easier to talk to considering the call centre was local. Also it seemed from reviews and anecdotes they were quite good to deal with during claims - again I think this will change for the worse.

  • Gdsamp on 15/05/2025 - 13:55

    From the Q&A section of the RAC Link

    Q: Is my policy going to get more expensive?
    A: Your premium is calculated due to factors such as changes in your personal circumstances, your driving record, the value of your insured property or market conditions.

    Lol

    • Protractor on 15/05/2025 - 13:57

      That's about as YES as you can get.

  • GordonD on 15/05/2025 - 14:00

    IAG is what was NRMA's car insurance arm, before they spun it off.

    IAG is progressively taking over the insurance arms of the "motoring organisations" in state after state.

  • does it matter on 15/05/2025 - 15:42
    +2

    This is the worst thing that could happen…

  • kmwa on 15/05/2025 - 15:57
    +1

    Thanks for the heads-up, OP.
    I'm in Perth, I've been with RAC WA for both of our cars for 5 years. But I haven’t heard anything about the change of ownership.
    Over the years, I have found RAC WA consistently cheaper than anyone else. But of course, over the years they have consistently increased:
    2020 - $289 for 2018 Hyundai i30
    2024 - $628
    2025 - $804
    Because of the jump in premium each year, I’ve always shopped around. The results this year were:
    * Bingle quoted $788, this included hire car and windscreen cover. But this was Market Value, not Agreed Value.
    * Rollin quoted $878, this included hire car and windscreen cover. Car insured for $18175.
    * Aldi quoted $977 (but no hire car)
    * Bendigo quoted $935, this included hire car and windscreen cover.
    * ING quoted $603, this included hire car and windscreen cover (15% online discount included).
    So this year, I’m ditching RAC WA and going with ING as they only want 75% of the RAC WA premium on a like-for-like basis.
    Next year I might get a better price from RAC WA, as a new insuree (disloyalty bonus).

    • kmwa on 16/05/2025 - 07:50
      +1

      Update…
      Well, I checked out ING car insurance on Product Review - a lot of 1 star reviews and complaints about them. But only complainants put reviews on Product Review, right?
      https://www.productreview.com.au/listings/ing-car-insurance
      So I went to order ING car insurance anyway. What a shitshow. I filled in the online form and was told to phone them as they needed more information. Called them and spent an hour being passed from one person to another, verifying my identity 4 times. They were trying to merge my “profiles” and had me confirming an address that I lived at in 2003. They eventually suggested that I try to buy car insurance while logged into my ING bank account. I tried this and eventually got the same message to call them again.
      If they make it this difficult to buy car insurance when you want to give them money, I wonder how difficult they will make it when you make a claim and actually try to get money back from them. Maybe all those 1 star reviews on Product Review were right.
      Anyway, I’m so annoyed that I’m closing my ING bank and savings accounts, after being a customer of theirs since 2001.
      And I’m just going to renew with RAC WA. I think I just dodged a bullet.
      “My name's kmwa, and that was my story”.

      • kmwa on 19/05/2025 - 12:00

        Episode 3…
        So I kept on looking anyway.
        * AAMI quoted $1020, this included hire car and windscreen cover. Car insured for $18000.
        * Coles quoted $606, this included hire car and windscreen cover. Car insured for $18000.
        So I’ve taken out insurance with Coles. The Coles quote was a last ditch attempt before renewing with RAC WA and it really surprised me, because I previously found Coles to be more expensive than RAC WA. I took out insurance with Coles in 2019 when I bought the i30 at $478, but I cancelled it within 2 weeks when I realised that I could get cheaper insurance from RAC WA at $289. Even in 2023, Coles were more expensive than RAC ($766 vs $386).
        Incidentally, the Coles online process looked similar to ING – they are both underwritten by Auto & General Insurance Company Limited. And Coles have loads of 1 star reviews on Product Review…
        https://www.productreview.com.au/listings/coles-car-insuranc…
        Just on last thing to mention which might explain why Coles are suddenly cheaper. In 2023, Coles’ underwriter was Insurance Australia Group (IAG), but now it is Auto & General Insurance Company Limited. Maybe they are trying to drum up some new business. And it brings me full circle back to OP’s original post!
        TLDR. If you’re with RAC WA, get a quote from Coles before renewing.

  • Drakesy on 15/05/2025 - 16:33
    +2

    Dammit

    I'm with them for third party and they're easily 30-40% cheaper than the next competitor but this might be a thing of the past.

  • tenpercent on 15/05/2025 - 19:53
    -1

    I only want made in WA. None of that East Coast stuff. /s

  • Benoffie on 15/05/2025 - 21:09

    RAA recently did similar and everything shot up.

    Try comparing with AAMI and Shannons. Found them to be more in line with former pricing

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