In the wake of the Northern Territory Government’s Economic Development Summit last week, and the suggestion that Territory Insurance Office (TIO) may be put up for sale, speculation about possible ramifications have been rife.

TIO, which is owned by the NT Government, is the only insurer offering storm surge coverage to Katherine residents, but it has no control over any potential sale. “Because TIO is government-owned, that’s as much as we know,” a TIO spokesman told Sunrise Exchange News.

According to Katherine Mayor Anne Shepherd, most businesses and residents in the town are insured by TIO because of its storm surge coverage. The region was hit by floods in 1998, and it’s likely that it will flood again in the future.

There is concern that if TIO is sold, no other insurance company would offer the same coverage because of the high risk involved.