Zurich-based catastrophe insurance data provider PERILS has provided the first insurance industry loss estimate of A$786 million for the Victorian bushfires that occurred from January 7 to 13, 2026.
PERILS estimates of insurance market losses for this event are based on loss data collected from affected insurance companies. This preliminary estimate covers property and motor hull operations under Australia’s PERILS coverage definition.
According to the PERILS reporting schedule, the latest estimate of market losses for this campaign will be provided on April 13, 2026 (three months after the campaign end date).
These events affected Australia’s southeastern state of Victoria and were the most destructive bushfires since the Black Saturday bushfires in February 2009.
The bushfires, sparked by a heatwave and fueled by dry grasslands, have scorched around 400,000 hectares of mostly rural land, killing one person and causing significant damage to property, livestock and infrastructure.
Shortly after the seriousness of the situation became clear, the Insurance Council of Australia (ICA) declared these bushfires an insurance catastrophe.
Luzi Hitz, PERILS Product Manager, commented: “Victoria has suffered two major bushfire disasters in recent years, the ‘Black Summer’ event in 2019/20 and the ‘Black Saturday’ event in 2009, the latter of which killed 173 people.
“The death toll this time is much lower, partly because the bushfires are affecting less populated areas, but also because of the swift declaration of an emergency, early evacuations and extensive firefighting efforts, which undoubtedly helped save lives.
“After Australia has experienced six years of major ‘wet’ Cat events, including floods, cyclones and severe convective storms, the 2026 Victorian bushfires are a reminder that significant bushfire risk exists in Australia.”
