The Insurance Council of Australia (ICA) has declared the severe bushfires affecting Victoria since 7 January 2026 a major incident, with state fire authorities continuing to battle out-of-control blazes with total structural damage exceeding 350.
The ICA said its initial disaster response has now been launched, allowing the council and insurers to begin assessing the impact of the widespread fires on insurance.
Fires have been burning in dozens of locations across Australia for days, mainly in the state of Victoria but also in parts of New South Wales.
Victoria Premier Jacinta Allan said over the weekend that there were 30 fires burning across the state, 10 of which were classified as being of special concern.
She added that more than 350,000 hectares of land had been burned and one death was confirmed.
According to the significant incident statement, the ICA has begun the claims data collection, analysis and reporting process in consultation with members.
This event may escalate to an insurance catastrophe if the number or complexity of claims increases significantly, or if negotiations are negotiated with the insurance company.
Liam Walter, Director of Mitigation and Extreme Weather Response at ICA, commented: “Insurers’ first priority is community safety and we strongly encourage all Victorians to follow the advice of emergency services.
“This major incident declaration extends across Victoria, allowing the ICA to monitor claims across the state. While it is too early to estimate the total losses from these fires, insurers are ready to assist affected policyholders in their recovery. The ICA is in close and ongoing dialogue with local response agencies.”
Elsewhere, Suncorp recently revealed it had received around 60 home and car claims as a result of the Victorian bushfires as of January 12.
Suncorp CEO Steve Johnston commented: “Bushfire risk remains high across southern Australia, particularly in Victoria, and is being monitored closely by our Disaster Management Center in Brisbane.
“We are using satellite imagery to assess the damage until our teams can safely reach the ground.”
