Confusion as Peter Dutton doubles down on threat to break-up insurers

Peter Dutton has intensified his threat to break up major insurers for anti-competitive behaviour, as the opposition messaging on its forced-divestiture policy appears increasingly muddled.

Opposition Leader Peter Dutton. Picture: NewsWire / John Gass

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Peter Dutton has again threatened to break up major insurers if they engage in anti-competitive behaviour, with the Coalition’s messaging on its forced-divestiture policy appearing increasingly confused.

Opposition frontbenchers Angus Taylor, Sussan Ley and Jane Hume have maintained during the past week that the ­divestiture plans are limited to major supermarkets and hardware retailers, but the Opposition Leader on Tuesday said the ­insurance industry was in his sights.

“We will divest if that is what is required to get competition into the marketplace,” Mr Dutton said during a visit to a Gold Coast emergency management centre overseeing the response to Cyclone Alfred.

Repeating his claim that the industry had priced customers out of cover, Mr Dutton said he would pursue the insurance sector if evidence of “market failure” arose.

“If the advice to our government is that there is a concentration of power or market share vested in the big insurance companies in this country, and that concentration of market share has led to businesses and families not being able to get insurance cover, or indeed led to people paying astronomical prices for their premiums … my government will act,” he said.

An intervention into the insurance market would expand the Coalition’s existing divestiture policy which, if legislated, would target major supermarket and hardware chains with new powers of “last resort” that would force companies to divest their assets in the event they engage in anti-competitive conduct.

Mr Dutton’s comments echo a similar threat he made last month, however, he has since been contradicted by Coalition frontbenchers who have suggested the divestiture push remained limited to hardware and supermarket ­retailers.

Last week, Mr Taylor, the ­opposition Treasury spokesman, dismissed the idea that the ­Coalition had ever intended to pursue the sector.

“We’ve said we’ll keep it confined to supermarkets only,” Mr Taylor told a business summit.

Pressed if the insurance industry would be included, Mr Taylor replied: “No, we’ve been clear on that.” Mr Taylor later said the ­divestiture policy was confined to supermarkets and hardware retailers, before stating that the threat of divestiture over the ­insurance market still stood.

“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.”

That view was shared by Kevin Hogan, the opposition’s trade spokesman, who on Monday said the threat to forcibly break-up the insurance industry should be “in our arsenal”, before subsequently suggesting that any sector could potentially be covered by the policy.

“If we see any sector in Australia where there’s not enough competition and people misuse market power, I think, you know, over time, anything can be on the shelf,” Mr Hogan told Sky News.

That same day, however, Ms Ley and Senator Hume ruled out coverage of the insurance market under its divestiture plan.

“We do not propose divestiture with respect to insurance companies, and we’ve made that clear,” Ms Ley said in western Sydney.

Senator Hume told the ABC: “You can take my word for it … that divestiture is not part of our policy for insurance companies.”

Mr Dutton denied there was ­inconsistency among the shadow cabinet. “I have looked at what they have said, and I think there is a consistency there as well,” Mr Dutton added.

Reacting to Mr Dutton’s comments, Jim Chalmers lambasted the Coalition for “making it up as they go” on competition policy.

“They’ve had weeks to get their story straight on insurance but still they’re hopelessly divided,” the Treasurer said.