(Re)Insurance and Regulation Focus - week commencing 28 September 2026

Key developments in the last fortnight

ACCC blocks sale of RAC WA’s insurance business to IAG

The ACCC has again opposed Insurance Australia Group’s (IAG) proposed $1.35 billion acquisition of the Royal Automotive Club of Western Australia’s (RAC WA) insurance business, after both IAG and RAC WA sought a reassessment of the ACCC’s initial December 2025 decision. Following a detailed reassessment, the ACCC found the proposed transaction would give IAG control of more than half of WA’s motor vehicle and home & contents insurance markets, thereby substantially decreasing competition and potentially increasing premiums to the detriment of consumers. Both parties maintain that the 20-year partnership would instead benefit WA policyholders by allowing RAC WA to share risk with a national insurer, but the ACCC was not persuaded that RAC WA’s future cost pressures would stop it from remaining an effective competitor on its own. IAG will now lodge a public benefit application, the first of such under the ACCC’s new mandatory merger regime that commenced on 1 January 2026, with a further review to the Australian Competition Tribunal available if that application fails.

ACCC again blocks sale of RAC WA's insurance arm to Sydney-based IAG - ABC News

APRA publishes 'getting the balance right' article on reducing regulatory burdens

As part of its APRA Explains series, the Regulator has released an article reviewing the first year of its 'getting the balance right' strategic objective, aiming to cut unnecessary costs and complexities without lowering prudential safeguards. APRA reports that eight of the nine initiatives in its 2025-26 Corporate Plan are expected to be finalised by the end of 2026. For insurers, the completed measures include greater access to cost-effective reinsurance and lower capital requirements for annuity products, with work towards simplified governance rules, and reduced data reporting. Further, measures to reduce the regulatory burden of the Financial Accountability Regime (FAR) are underway. Under its 2026-27 Corporate Plan, as reported in our publication for the week commencing 31 August 2026, APRA intends its further and ongoing simplification measures to offset new requirements, aiming for a broadly net-neutral overall impact on regulatory burden.

'Getting the balance right': supporting productivity and maintaining financial stability | APRA  | (Re)Insurance and Regulation Focus - week commencing 31 August 2026

ASIC sues lead generation business over allegedly misleading comparison claims

On 18 September 2026, ASIC commenced Federal Court proceedings against a lead generation business, alleging that between September 2020 and September 2026 it operated up to 70 websites offering free online assessments for loans and insurance products. ASIC alleges the websites represented to customers that they could compare quotes and options and receive recommendations tailored to their circumstances, when in fact, no such comparisons or tailored recommendations were made. Instead, ASIC contends, the websites simply sold each customer enquiry through an internal undisclosed bidding process to the highest-bidding broker who then contacted the customer directly. ASIC alleges contraventions of ss 12DB and 12DF of the Australian Securities and Investments Commission Act 2001 (Cth) and is seeking declarations, pecuniary penalties, an adverse publicity order and injunctive relief.

26-221MR ASIC sues lead generation business over alleged misleading comparison claims | ASIC

Key dates

• 2 October 2026 – Consultation on streamlining FAR administration closes.
• 2 November 2026 – Final report from Senate inquiry into greenwashing due.
• 5 – 6 November 2026 – ICA Annual Conference.
• 17 – 18 November 2026 – ASIC Annual Forum.

In case you missed it

The Sparke Helmore team has been advising on the application of FAR and compliance measures, including conducting FAR simulation exercises for Accountable Persons, embedding and testing the effectiveness of entities’ FAR implementations. If this is of interest to you, please reach out and let us know.