The Territory Insurance Office (TIO) is losing more than 40 employees following a strategic review.

New owner Allianz had pledged not to make redundancies until the review’s completion, but it has now identified “some duplication of roles” in non-customer-facing areas.

TIO Acting CEO Paul Kernaghan says the changes are designed to improve competitiveness and secure the insurer’s future.

According to the new strategy, customer-facing services including call centres, branches and claims processing will be retained, with investment in the TIO brand through increased sponsorship.

Cover for flood, cyclone and storm surge will be maintained in home policies, with “more equitable pricing” progressively introduced. This will see customers paying amounts that more accurately reflect their risks, delivering “fairer and more sustainable premiums”.

TIO will expand its product range, with travel and life insurance to be introduced.

Allianz says brokers will have access to a broader range of products and services, including those available through its specialist underwriting agencies. The workers’ compensation claims teams for TIO and Allianz will be combined at TIO’s head office.

“We will work with our employees and other stakeholders to continue the smooth transition from government ownership and ensure TIO retains its role as an important part of the territory community,” Mr Kernaghan said.

Allianz says TIO has suffered a “sustained loss of market share” over many years, and the new strategy is designed to reverse the trend. The sale of the NT state insurer was announced in November, with Allianz paying $230 million for the insurance operations.

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