Angus Taylor dumps plans to pursue insurers in divestiture plan

The Coalition has dumped its threat to extend its proposed divestiture powers to Australia’s insurance industry.

The insurance industry was never in the sights of the Coalition’s divestiture proposal, Angus Taylor has claimed. Picture: NewsWire / Martin Ollman

The Coalition has dumped its threat to extend its planned ­divestiture powers to the ­insurance industry if companies fail to reduce premiums, after it accused the sector of pricing customers out of cover.

The reversal comes less than three weeks after Peter Dutton said the Coalition was prepared to intervene in the sector, warning that companies may need to be broken up to ensure greater competition and bring down prices.

“As we’ve done with the supermarkets, where we have threatened divestment, if consumers are being ripped off, similarly in the insurance market, we will ­intervene to make sure that consumers get a fair go,” Mr Dutton said during an interview on Sky News.

That move would see the extension of the Coalition’s existing divestiture policy, to be used as a power of “last resort”, which currently targets grocery and hardware chains including Coles, Woolworths and Bunnings should they engage in anti-competitive behaviour.

But when quizzed about its proposal to cover the insurance market on Wednesday, opposition Treasury spokesman Angus Taylor dismissed the idea that the Coalition had ever intended to pursue the sector under its proposed divestiture rules.

“We’ve said we’ll keep it confined to supermarkets only,” Mr Taylor told a business summit on Wednesday, contradicting the Opposition Leader’s previous comments.

Pressed if the insurance industry would be included, Mr Taylor replied: “No, we’ve been clear on that.

“There’s a lot of hyperventilating about this from some, and I would say, in my whole career, I never once heard a single person say I’m not investing in the US or UK because they have divestiture laws.”

Attempting to clarify the ­opposition’s position several hours later, Mr Taylor said the ­divestiture policy was confined to supermarkets and hardware retailers, before later signalling the threat of divestiture over the insurance market could still stand.

“We expect all industries to act in a pro-competitive way and that includes the insurance industry,” Mr Taylor said. “If we see anti-competitive behaviour we will take appropriate action.”

Jim Chalmers seized on the apparent division between Mr Taylor and Mr Dutton, accusing the pair of being “hopelessly split” as to whether the insurance market was covered by its divestment plan.

“Our opponents have had three years now to come up with coherent, costed and credible economic policies, and they’re yet to do so,” the Treasurer said in Brisbane.

“The Coalition is hopelessly divided when it comes to economic policy … They’re making it up as they go along, and that’s clear.”