Zurich-based catastrophe insurance data provider PERILS has released its third estimate of the Victorian bushfires that occurred from January 7 to 13, 2026, with insurance industry losses now standing at $860 million.
PERILS explains that this loss figure is based on detailed loss data by postcode and property and motor hull lines of business collected from most parts of the Australian insurance market, in line with its coverage definition for Australia.
According to reports, personal line property damage accounted for 30% of losses, commercial line property damage accounted for 68%, and automobile damage accounted for 2%.
The updated estimate compares to previous PERILS estimates of $786 million, released three months after the event, and $810 million, released six weeks after the event.
Providing some background information, PERILS noted that in January 2026, Australia’s southeastern state of Victoria experienced more than 30 major bushfires, burning an area of approximately 400,000 hectares and causing widespread damage, particularly in the central and northern regions.
“The bushfires, sparked by extreme heat, dry vegetation, strong winds and ignition sources such as lightning and human activity, resulted in the destruction of approximately 900 buildings, damage to critical infrastructure and the death of one person,” the company said.
Darryl Pidcock, head of PERILS Asia Pacific, commented: “This is the second time, the first time was in 2019
‘Black Summer’ Australian bushfires – PERILS covers Australia’s bushfires in such detail.
“While we have regularly observed severe convective storms and flooding events in recent years, this is a reminder of the impact bushfires can have during dry, hot summers.
“We believe these insights will help the insurance industry better understand and model bushfire risk in preparation for next summer.”
PERILS concluded that, in line with its reporting schedule, the latest estimate of market losses will be released on January 13, 2027, 12 months after the event end date.
