The Insurance Australia Group Ltd (ASX: IAG) share price is racing ahead of the benchmark today. 

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance company closed yesterday trading for $8.52. At the time of writing, shares are changing hands for $8.78 apiece, up 3.1%. 

For some context, the ASX 200 is down 0.4% at this same time.

This follows on good news from the Australian Competition and Consumer Commission (ACCC).

Here's what's grabbing investor interest today.

IAG share price leaps on ACCC green light

The IAG share price is getting a boost following an update this morning on its 25-year strategic alliance with the Royal Automobile Club of Queensland (RACQ) to provide general insurance products and services for RACQ members and Queenslanders.

The deal, first announced on 28 November, comes with a price tag of $855 million.

But management and investors alike have been awaiting approval from the ACCC for the deal to move forward.

And now, after a three-and-a-half-month review, the ACCC has determined IAG's acquisition of RACQ's insurance business will not have a materially negative impact on competition in Queensland.

The ACCC noted that atop smaller competitors, Queenslanders can also source their insurance needs from IAG rivals including Suncorp Group Ltd (ASX: SUN), QBE Insurance Group Ltd (ASX: QBE), and Allianz.

IAG said it "welcomed the ACCC's decision" not to oppose its proposed acquisition of RACQ Insurance.

The IAG share price is likely getting added support, with the company noting that, on completion, the RACQ portfolio is expected to add around $1.3 billion to the company's Gross Written Premium.

The ASX 200 insurer added that the deal remains subject to completion of other requirements, including approval under the Financial Sector Act. Subject to the completion of those requirements, IAG expects its RACQ insurance acquisition to be completed in the third quarter of calendar year 2025.

What did management say?

Commenting on the ACCC approval helping boost the IAG share price today, CEO Nick Hawkins said, "We're excited by the opportunity to partner with RACQ to provide our leading insurance products, services and support to RACQ members, partners and people across Queensland."

Hawkins added:

As we outlined when we announced the strategic alliance in November last year, RACQ will maintain brand and customer relationships, while leveraging IAG's scale, financial strength, best-in class technology for claims, policies and pricing, customer orientated claims experience and underwriting expertise.

RACQ CEO David Carter said:

This is a great first step in the regulatory process and recognises the benefits that would come from the two organisations working together as part of a 25-year strategic partnership agreement.

With today's intraday boost factored in, the IAG share price is up 35.9% over 12 months.