Resistance is building to the sale of the Territory Insurance Office (TIO), but the NT Government has the numbers to push it through and may start the process before the year’s end.

It proposes selling the insurer under the Federal Government’s asset recycling incentive program, which offers a 15% payment on the sale price to states and territories that sell assets and reinvest the funds in infrastructure.

Chief Minister Adam Giles says when TIO was founded in 1979 most banks and insurers did not operate in the territory.

There are now 12 insurers, all of which offer cyclone cover and 11 of which offer flood insurance.

Independent MP Gerry Wood told insuranceNEWS.com.au Territorians have followed north Queensland’s insurance issues and are concerned that a national insurer buying TIO will push up cyclone and flood premiums and lengthen the claims process.

Mr Wood held a public meeting on the sale after smash repairers approached him with concerns. He says they and other business owners and residents fear TIO will lose its local focus.

Labor Opposition Leader Delia Lawrie says other insurers give much higher quotes than TIO for flood and storm surge cover.

“TIO is the only insurer in the territory market that provides no-loophole cyclone, flood and storm surge cover,” she said.

Even without privatisation, TIO’s flood premiums are expected to increase.

Darwin homes are built to stringent cyclone building codes but the town of Katherine has flooded twice in the past 10 years.

TIO is the last government-owned insurer in the country and also has banking operations.

A previous Labor government proposed selling it several years ago but dropped the plan after public opposition.