The Australian Competition and Consumer Commission will not intervene in the proposed Western Australian personal lines insurance joint venture of the RACWA and Royal and Sun Alliance, ACCC Chairman, Professor Allan Fels, said today.
"The ACCC's view is that in the insurance categories identified the joint venture does not raise competition issues. The joint venture group would not have a market share sufficient to raise competition concerns in any of the insurance categories.
"The ACCC noted that, while the RACWA is a strong player in motor vehicle insurance in Western Australia, Royal and Sun Alliance has a small presence.
"After conducting market inquiries, the ACCC found that strong competition from other insurance companies, particularly the NRMA and its Western Australian subsidiary, SGIO, would ensure that the market would remain competitive after the merger".