The Motor Trades Association of Australia (MTAA) and its body repair committee, the Australian Motor Body Repairers Association (AMBRA), are urging the Australian Competition and Consumer Commission (ACCC) to reject two proposed insurance industry acquisitions and implement stronger regulations to ensure fairness and transparency in the motor vehicle insurance and repair sector.
As the ACCC reviews Allianz's acquisition of RAA Insurance and Insurance Australia Group's acquisition of RACQ, it is seeking industry feedback on whether these acquisitions will substantially lessen competition.
MTAA strongly opposes these acquisitions, citing significant concerns over market power abuse and the negative impact on businesses, consumers, and the broader insurance industry.
A more consolidated insurance market will lead to higher costs, reduced choices, and lower service quality for motorists. While repairers will face immediate pressure, the long-term effects will include rising premiums and limited access to high-quality repairs. These acquisitions offer no tangible benefits to the industry or consumers but will further entrench insurer dominance.
MTAA also highlights the inadequacy of current state-based regulations, which lack consistency and meaningful penalties for non-compliance. South Australia is the only state with penalties, yet the maximum fine of $50,000 remains too low to deter unfair practices by large insurers. Without stronger nationwide regulations, further consolidation will only deepen existing imbalances, disadvantaging repairers and motorists alike.
MTAA calls on the ACCC to reject these acquisitions and introduce a robust regulatory framework by strengthening the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct to protect the industry and ensure a fair, competitive market for all stakeholders.
"Without stronger oversight, insurers will continue to dictate repair practices, creating an unfair playing field that hurts small businesses and limits consumer choice. The ACCC has a critical role to play in ensuring a fair, transparent, and competitive insurance and repair industry," said Matt Hobbs, CEO of MTAA.
"A nationally enforced Code of Conduct with real penalties is essential to holding insurers accountable and protecting the livelihoods of thousands of repairers across Australia."
MTAA and its members are actively involved in the current MVIRI Code review, working with the insurance sector to enhance governance, compliance, dispute resolution, and accessibility. This review aims to establish clearer dispute resolution processes, defined assessment timeframes, and enforceable sanctions to protect repairers from insurer misconduct and unfair contract terms.
MTAA urges the ACCC and the Australian Government to support a mandatory national MVIRI Code of Conduct, ensuring stronger enforcement and consistent regulation across all states. Without national enforcement, repairers and consumers remain vulnerable to unfair practices that limit industry sustainability and competition.
MTAA's full submission to the ACCC review can be accessed here.
Media Contact:
Matt Hobbs
CEO, MTAA
m: 0419 608 845
e: matt.hobbs@mtaa.com.au
The Motor Trades Association of Australia (MTAA) is the peak body representing the interests of the automotive retail sector across the nation. Through proactive engagement, MTAA helps shape sound public policy on issues that affect the retail motor trades, small businesses and consumers.
MTAA's member associations include the Motor Traders' Association of New South Wales, the Victorian and Tasmanian Automobile Chamber of Commerce, the Motor Trade Association of South Australia and Northern Territory, the Motor Trade Association of Western Australia, and the Motor Trades Association of Queensland.
At the national level, MTAA acts as a unified voice, representing the interests of the automotive sector to the federal government and influencing key policy decisions. Its work includes identifying and addressing issues impacting the sector and advocating for the needs of automotive businesses through ongoing discussions with government.
