Smash repairers in Queensland say they have no objection to the proposed merger of insurers Suncorp and Promina, although they have made a confidential submission to the Australian Competition and Consumer Commission (ACCC).

Motor Traders Association of Queensland (MTAQ) CEO Aivers Blums says the merger could create an oligopoly in the Queensland motor insurance market. That’s not a problem in itself, but the merger will need to be carefully handled to ensure the market remains fair.

“The MTAQ doesn’t have any objection to the merger,” Mr Blums said. “That’s just a commercial issue.” However, he hopes the ACCC acknowledges the deal will create a substantial entity “that could have the ability to dominate the market and become a ‘price maker’”.

Between them, Suncorp and Promina account for 69% of the Queensland motor insurance market.

Mr Blums did not reveal any specific details on the MTAQ submission but told Sunrise Exchange News motor traders were looking for assurances the new company would moderate its behaviour in the market.

He says the recently agreed voluntary code of conduct between national insurers and the smash repair industry provided the best definitions of the sort of issues at stake.