The Motor Trades Association of Australia (MTAA) and the Australian Motor Body Repairers Association (AMBRA) have urged the Australian Competition and Consumer Commission (ACCC) to reject two proposed insurance acquisitions, arguing they could reduce competition and increase costs for repairers and motorists.
The groups are also calling for stronger national regulations in the motor insurance and vehicle repair sectors.
The ACCC is reviewing Allianz’s planned acquisition of RAA Insurance and Insurance Australia Group’s (IAG) proposed acquisition of RACQ.
As part of this process, the regulator is assessing whether these transactions could lead to a substantial reduction in competition.
MTAA has expressed concerns that further consolidation within the insurance industry could give insurers more control over repair practices, potentially limiting consumer choice and increasing financial pressures on small businesses in the sector.
The association argues that while repairers may experience immediate challenges, the long-term effects could include rising premiums and restricted access to quality vehicle repairs.
The organisation has also criticised existing state-based regulatory frameworks, which it says lack consistency and do not impose meaningful penalties for non-compliance.
South Australia is currently the only state that has financial penalties in place for breaches of motor insurance regulations, but MTAA contends that the maximum fine of $50,000 is insufficient to deter unfair practices by large insurers.
Aside from MTAA and AMBRA, the Victorian Automotive Chamber of Commerce (VACC) has been urging the ACCC to address emerging challenges facing Australia’s automotive sector.
In its submission, VACC highlighted issues that impact the broader automotive sector. Among its key concerns is the need for improved consumer education about electric vehicle (EV) servicing and associated costs. The organisation has suggested that the ACCC take a role in addressing misinformation about EV maintenance, particularly as demand for hybrid and electric vehicle insurance continues to grow.
VACC has also raised concerns about warranty claims and recall processes, particularly delays in manufacturer reimbursements to dealerships for warranty repairs. The organisation has urged the ACCC to enforce fairer reimbursement practices to ensure dealerships are not financially disadvantaged by slow or denied claims.
Regarding vehicle service and repair data, VACC acknowledged some improvements under the Motor Vehicle Service and Repair Information Scheme but argued that more action is necessary. The chamber has called on the ACCC to ensure that independent repairers have fair access to data and that third-party providers comply with safety standards.
MTAA CEO Matt Hobbs (pictured) emphasised the ACCC’s critical role in ensuring a fair, transparent, and competitive insurance and repair industry.
“Without stronger oversight, insurers will continue to dictate repair practices, creating an unfair playing field that hurts small businesses and limits consumer choice,” he said.
The association is pushing for several reforms, including expanded ACCC oversight of the insurance sector to monitor market power and prevent anti-competitive behaviour. It is also advocating for the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct to be nationally enforced with meaningful penalties for non-compliance.
MTAA is actively engaged in the ongoing review of the MVIRI Code, working with insurers and industry stakeholders to improve governance, compliance, and dispute resolution. The proposed changes include clearer timeframes for repair assessments and enforceable sanctions to address unfair contract terms and insurer misconduct.
