In a big move for Australia’s insurance industry, Insurance Australia Group (IAG) has agreed to buy 90% of RACQ’s insurance underwriting business. This deal will strengthen IAG’s position in the Queensland market while allowing RACQ to focus on its roadside assistance and member services.
IAG, one of Australia’s largest insurers, already owns brands like NRMA Insurance and CGU. By taking over most of RACQ’s underwriting operations, IAG will gain more customers in Queensland. RACQ will keep a 10% stake in the business and continue selling insurance under its own name.
For RACQ, this deal means less financial risk. Insurance underwriting can be unpredictable, especially with rising natural disasters. By partnering with IAG, RACQ can still offer insurance products without bearing all the risk.
Experts say this deal makes sense for both companies. IAG gets more market share, while RACQ can focus on its core services. Customers likely won’t see big changes right away, but over time, IAG’s systems may improve efficiency.
The deal still needs regulatory approval but is expected to finalize in 2025. If approved, it will be one of the biggest insurance deals in Australia this year.
This move shows how major insurers are consolidating to handle growing risks like climate change and higher costs. For everyday customers, it means more stability but also fewer choices in the long run.
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