The Coalition has been forced to provide further clarification on their policy regarding the breakup of large insurance companies, as Peter Dutton now acknowledges that “something has failed” in the market with skyrocketing premiums for Australians. The opposition leader confirmed that the Coalition would threaten to break up insurance companies in the event of market failure, where affordable cover is difficult to obtain.

This acknowledgment came after confusion over whether the divestiture policy would apply to insurers, with varying statements from Dutton and other senior frontbenchers over the applicability of the policy to the insurance industry. Initially, Deputy Opposition Leader Sussan Ley stated that divestiture would not apply to insurance companies, but later stated that the Coalition would take action on concerns in the insurance industry.

Ley clarified that her earlier comments were taken out of context and maintained that the Coalition’s stance on insurance companies is consistent. Dutton stated that the Coalition would break up companies if advised that a concentration of market share has led to increased premiums and reduced accessibility to insurance cover.

The insurance industry is under scrutiny over its level of concentration, which may trigger the divestiture policy if Dutton’s advice in government is that market concentration is distorting the market and driving up premiums. Ley also echoed this stance, indicating that under a potential Coalition government, they would not hesitate to act if advised of market power concentration in the insurance sector. The current policy is focused on supermarkets and hardware stores and Ley affirmed that there is no inconsistency in the Coalition’s policy regarding insurance companies.

Source: https://www.theguardian.com/australia-news/2025/mar/12/peter-dutton-forced-to-clarify-policy-on-breaking-up-big-insurance-companies-after-weeks-of-confusion