IAG has tabled a series of “remedy” actions it would take to ease the competition watchdog’s concerns over its planned $1.35 billion purchase of WA’s RAC Insurance.

The actions focus on the merger’s distribution agreement and smash repairers – areas the Australian Competition and Consumer Commission flagged in its decision to hold a further review of the deal.

Proposals include a “detailed” competitiveness framework aimed at ensuring the group’s insurance products are competitively priced in WA and a commitment not to own or control repair service facilities in the state, with carveouts permitted.

“The remedy offer outlines a number of commitments IAG has proposed to provide additional comfort regarding some of the matters being considered by the regulator as it reviews the proposed acquisition,” a spokesperson told insuranceNEWS.com.au.

“These are designed to reinforce IAG’s commitment to providing RAC members with continued access to competitive insurance products, and to ensure there is ongoing competition and choice in the WA smash repair market.

“IAG’s position remains that the proposed acquisition of RAC’s insurance business would not have the effect, or be likely to have the effect, of substantially lessening competition in any market.”

The insurer made the remedy offer to the regulator this month.

ACCC has issued a follow-up questionnaire for feedback by July 22 in response to the remedy offer. It asks whether the move eases concerns around insurance product distribution, smash repair services and repair service facilities.