ACCC again blocks sale of RAC WA's insurance arm to Sydney

RAC WA had been looking to sell its entire insurance operations to IAG in a $1.35 billion deal. ( ABC News: Jake Sturmer )

The competition regulator has again blocked the sale of RAC to the east-coast-based IAG, saying it would reduce competition in WA's insurance markets and increase premiums.

The RAC maintains that members would be better off under a national insurer that would "strengthen RAC's ability to respond to a changing insurance landscape" and reduce the risk it carries alone.

IAG will now lodge a public benefit application with the watchdog, which will then decide whether any public benefit from the acquisition would outweigh the detriment.

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